Jefferies Group Weighs in on Bank of America Corp’s Q1 2018 Earnings (BAC)

Bank of America Corp (NYSE:BAC) – Jefferies Group lowered their Q1 2018 earnings per share estimates for Bank of America in a research report issued on Wednesday. Jefferies Group analyst K. Usdin now expects that the financial services provider will post earnings per share of $0.57 for the quarter, down from their prior estimate of $0.58. Jefferies Group also issued estimates for Bank of America’s Q2 2018 earnings at $0.60 EPS, Q3 2018 earnings at $0.63 EPS, FY2018 earnings at $2.42 EPS and FY2019 earnings at $2.80 EPS.

BAC has been the topic of several other research reports. Barclays lifted their target price on Bank of America from $28.00 to $35.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 2nd. Royal Bank of Canada reiterated a “buy” rating and set a $30.00 price target on shares of Bank of America in a report on Friday, December 8th. Instinet reduced their price target on Bank of America from $37.00 to $30.00 in a report on Wednesday, January 3rd. BMO Capital Markets reiterated a “hold” rating and set a $31.00 price target on shares of Bank of America in a report on Monday, January 8th. Finally, Zacks Investment Research upgraded Bank of America from a “hold” rating to a “buy” rating and set a $33.00 price target for the company in a report on Tuesday, January 2nd. One analyst has rated the stock with a sell rating, ten have issued a hold rating and seventeen have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $29.87.

Bank of America (NYSE BAC) opened at $31.72 on Monday. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.90 and a current ratio of 0.91. Bank of America has a 12 month low of $22.07 and a 12 month high of $31.79. The firm has a market capitalization of $326,313.16, a PE ratio of 20.46, a price-to-earnings-growth ratio of 1.62 and a beta of 1.32.

Bank of America (NYSE:BAC) last released its earnings results on Wednesday, January 17th. The financial services provider reported $0.47 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.03. Bank of America had a return on equity of 8.54% and a net margin of 18.03%. The company had revenue of $20.69 billion for the quarter, compared to analysts’ expectations of $21.61 billion. During the same quarter in the previous year, the business posted $0.40 EPS. The business’s revenue for the quarter was up 3.5% on a year-over-year basis.

A number of institutional investors and hedge funds have recently bought and sold shares of BAC. Janus Henderson Group PLC lifted its holdings in Bank of America by 587.0% in the 2nd quarter. Janus Henderson Group PLC now owns 13,598,678 shares of the financial services provider’s stock worth $329,911,000 after purchasing an additional 11,619,173 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in Bank of America by 27.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 44,136,977 shares of the financial services provider’s stock worth $1,070,762,000 after purchasing an additional 9,612,342 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Bank of America by 1.4% in 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 during the last quarter. Parametric Portfolio Associates LLC lifted its holdings in Bank of America by 52.4% in the 2nd quarter. Parametric Portfolio Associates LLC now owns 24,012,218 shares of the financial services provider’s stock worth $582,536,000 after purchasing an additional 8,261,288 shares during the last quarter. Finally, Investec Asset Management LTD lifted its holdings in Bank of America by 68.6% in the 2nd quarter. Investec Asset Management LTD now owns 17,772,325 shares of the financial services provider’s stock worth $431,157,000 after purchasing an additional 7,231,615 shares during the last quarter. Hedge funds and other institutional investors own 68.47% of the company’s stock.

Bank of America declared that its Board of Directors has approved a share repurchase program on Tuesday, December 5th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

The business also recently announced a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 1st were issued a $0.12 dividend. The ex-dividend date of this dividend was Thursday, November 30th. This represents a $0.48 annualized dividend and a yield of 1.51%. Bank of America’s dividend payout ratio (DPR) is currently 30.97%.

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About Bank of America

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.

Earnings History and Estimates for Bank of America (NYSE:BAC)

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