Bank of America (NYSE:BAC) Trading Down 2.7% – Here’s What Happened

Bank of America Corporation (NYSE:BAC) shares traded down 2.7% during trading on Wednesday . The company traded as low as $57.18 and last traded at $57.89. 49,067,230 shares traded hands during mid-day trading, an increase of 32% from the average daily volume of 37,151,699 shares. The stock had previously closed at $59.52.

Key Bank of America News

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Analyst support remains a stabilizing factor. Barclays maintained a Buy rating on BAC, although other analysts remain more cautious following the weaker fee outlook. Barclays Remains a Buy on Bank of America
• Positive Sentiment: Management says the broader business remains healthy. Bank of America’s CFO sought to reassure investors that underlying operations are sound, while the bank’s latest reported quarter showed $1.21 in earnings per share, revenue growth of 19.6% year over year, and results above analyst expectations. Bank of America CFO Claims All Is Well as Stock Slides 7% in a Month
• Neutral Sentiment: Merrill launched two client-investment services for tax-efficient portfolio transitions and systematic cash investing. The initiatives could support wealth-management growth, but their financial impact is likely to develop gradually. Merrill Launches New Services
• Negative Sentiment: The primary pressure is the expected slowdown in Wall Street revenue. Management projected third-quarter investment-banking fees of approximately $1.6 billion to $1.8 billion, below the roughly $2 billion generated a year earlier, while trading revenue is expected to be little changed. Investors are questioning whether the recent capital-markets boom is losing momentum. Bank of America CEO Sees at Least 10% Drop in Q3 Investment Banking Fees
• Negative Sentiment: Valuation has become a concern after the prior rally. Commentary notes that BAC has risen substantially from its 52-week low and now trades at a valuation that leaves less room for disappointing revenue guidance. The stock has also fallen about 7% over the past month, despite remaining above its 200-day moving average. Is Bank of America Stock a Buy, Sell, or Hold After a 25% Run Off Its 52-Week Low?

Wall Street Analysts Forecast Growth

Several research firms have issued reports on BAC. UBS Group raised their target price on Bank of America from $68.00 to $70.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Argus set a $70.00 price target on Bank of America in a report on Wednesday, July 15th. Royal Bank Of Canada raised their price objective on Bank of America from $59.00 to $65.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 15th. Oppenheimer lowered shares of Bank of America from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 30th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Bank of America from $67.00 to $70.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 15th. Twenty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $64.08.

Bank of America Price Performance

The company has a fifty day moving average of $62.07 and a 200-day moving average of $55.70. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. The stock has a market cap of $404.81 billion, a PE ratio of 13.28, a P/E/G ratio of 0.95 and a beta of 1.15.

Bank of America (NYSE:BAC) last announced its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts’ consensus estimates of $1.13 by $0.08. The company had revenue of $31.56 billion during the quarter, compared to analysts’ expectations of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.Bank of America’s revenue for the quarter was up 19.6% on a year-over-year basis. During the same period last year, the business posted $0.89 EPS. Sell-side analysts expect that Bank of America Corporation will post 4.67 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, September 4th. This is a positive change from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.2%. Bank of America’s payout ratio is 29.36%.

Institutional Investors Weigh In On Bank of America

Large investors have recently added to or reduced their stakes in the business. Cherry Tree Wealth Management LLC raised its position in Bank of America by 167.6% in the 2nd quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 300 shares in the last quarter. Talon Private Wealth LLC grew its position in shares of Bank of America by 3.1% during the second quarter. Talon Private Wealth LLC now owns 52,819 shares of the financial services provider’s stock worth $3,010,000 after buying an additional 1,565 shares in the last quarter. Junto Capital Management LP purchased a new stake in shares of Bank of America during the second quarter worth approximately $70,218,000. Bouchey Financial Group Ltd. increased its stake in shares of Bank of America by 3.4% during the second quarter. Bouchey Financial Group Ltd. now owns 24,723 shares of the financial services provider’s stock worth $1,409,000 after buying an additional 808 shares during the period. Finally, Miramontes Capital LLC raised its holdings in Bank of America by 3.6% in the second quarter. Miramontes Capital LLC now owns 8,101 shares of the financial services provider’s stock valued at $462,000 after acquiring an additional 279 shares in the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.