Zacks: Brokerages Expect Bank of America Corporation (BAC) to Post $0.47 Earnings Per Share
Brokerages forecast that Bank of America Corporation (NYSE:BAC) will post $0.47 earnings per share for the current quarter, according to Zacks. Four analysts have made estimates for Bank of America Corporation’s earnings, with the lowest EPS estimate coming in at $0.43 and the highest estimate coming in at $0.49. Bank of America Corporation reported earnings of $0.41 per share in the same quarter last year, which would indicate a positive year over year growth rate of 14.6%. The company is expected to issue its next earnings results before the market opens on Friday, October 13th.
According to Zacks, analysts expect that Bank of America Corporation will report full-year earnings of $1.80 per share for the current year, with EPS estimates ranging from $1.75 to $1.88. For the next financial year, analysts expect that the firm will post earnings of $2.14 per share, with EPS estimates ranging from $2.00 to $2.30. Zacks Investment Research’s earnings per share calculations are a mean average based on a survey of research analysts that that provide coverage for Bank of America Corporation.
Bank of America Corporation (NYSE:BAC) last posted its quarterly earnings results on Tuesday, July 18th. The financial services provider reported $0.46 EPS for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.03. Bank of America Corporation had a return on equity of 8.11% and a net margin of 20.28%. The company had revenue of $22.80 billion for the quarter, compared to analysts’ expectations of $21.84 billion. During the same period in the previous year, the firm earned $0.41 EPS. The firm’s revenue was up 7.1% compared to the same quarter last year.
Several brokerages have commented on BAC. Oppenheimer Holdings, Inc. reissued an “outperform” rating and issued a $30.00 price objective (up from $29.00) on shares of Bank of America Corporation in a report on Friday, July 21st. Vetr lowered Bank of America Corporation from a “buy” rating to a “hold” rating and set a $24.19 price objective on the stock. in a report on Wednesday, June 28th. UBS AG reissued a “neutral” rating and issued a $26.00 price objective on shares of Bank of America Corporation in a report on Friday, July 21st. Wells Fargo & Company began coverage on Bank of America Corporation in a report on Wednesday, August 9th. They issued an “outperform” rating and a $30.00 price objective on the stock. Finally, Keefe, Bruyette & Woods reissued a “buy” rating and issued a $27.00 price objective on shares of Bank of America Corporation in a report on Wednesday, June 7th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-three have given a buy rating and three have given a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $24.47.
Bank of America Corporation (BAC) opened at 22.89 on Friday. The company has a 50-day moving average price of $24.01 and a 200-day moving average price of $23.83. The stock has a market capitalization of $240.72 billion, a PE ratio of 13.63 and a beta of 1.26. Bank of America Corporation has a 12-month low of $14.81 and a 12-month high of $25.80. Bank of America Corporation also saw some unusual options trading on Thursday. Stock investors bought 129,205 put options on the stock. This is an increase of 217% compared to the average volume of 40,793 put options.
Bank of America Corporation declared that its board has approved a stock buyback program on Wednesday, June 28th that authorizes the company to buyback $12.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 1st will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 2.10%. The ex-dividend date is Wednesday, August 30th. This is an increase from Bank of America Corporation’s previous quarterly dividend of $0.08. Bank of America Corporation’s payout ratio is currently 28.57%.
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In related news, Director Frank P. Bramble sold 86,763 shares of the business’s stock in a transaction on Thursday, August 10th. The stock was sold at an average price of $24.16, for a total transaction of $2,096,194.08. Following the completion of the transaction, the director now directly owns 50,000 shares of the company’s stock, valued at approximately $1,208,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.18% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in Bank of America Corporation by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 661,494,339 shares of the financial services provider’s stock worth $16,047,853,000 after purchasing an additional 9,117,007 shares in the last quarter. Korea Investment CORP grew its stake in Bank of America Corporation by 0.5% during the 2nd quarter. Korea Investment CORP now owns 78,908,445 shares of the financial services provider’s stock worth $1,914,319,000 after purchasing an additional 390,771 shares in the last quarter. Boston Partners grew its stake in Bank of America Corporation by 0.5% during the 1st quarter. Boston Partners now owns 75,404,921 shares of the financial services provider’s stock worth $1,778,802,000 after purchasing an additional 368,898 shares in the last quarter. TIAA CREF Investment Management LLC grew its stake in Bank of America Corporation by 1.7% during the 2nd quarter. TIAA CREF Investment Management LLC now owns 63,635,295 shares of the financial services provider’s stock worth $1,543,792,000 after purchasing an additional 1,079,788 shares in the last quarter. Finally, Legal & General Group Plc grew its stake in Bank of America Corporation by 2.0% during the 2nd quarter. Legal & General Group Plc now owns 50,797,049 shares of the financial services provider’s stock worth $1,232,414,000 after purchasing an additional 1,007,405 shares in the last quarter. 66.04% of the stock is owned by hedge funds and other institutional investors.
About Bank of America Corporation
Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S.
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