Bank of America (NYSE:BAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Bank of America’s shares have outperformed the industry, over the past six months. This price performance is backed by impressive earnings surprise history as the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company’s fourth-quarter 2017 earnings benefited from higher interest income and investment banking fees as well as lower operating expenses. Rising interest rates, increase in loan and deposit balances, and efforts to manage expenses are expected to continue supporting profitability. The bank’s efforts to streamline and simplify operations as well as gains from the new tax act will aid its financial performance. However, fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns.”
Other equities analysts have also recently issued reports about the company. Vetr cut Bank of America from a “hold” rating to a “sell” rating and set a $28.21 price target on the stock. in a research report on Tuesday. UBS Group set a $27.00 price target on Bank of America and gave the company a “hold” rating in a research report on Monday, October 16th. BMO Capital Markets reiterated a “market perform” rating and set a $29.00 price target (up from $27.00) on shares of Bank of America in a research report on Monday, October 16th. ValuEngine cut Bank of America from a “buy” rating to a “hold” rating in a research report on Tuesday, January 16th. Finally, BidaskClub upgraded Bank of America from a “buy” rating to a “strong-buy” rating in a research report on Monday, October 23rd. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and sixteen have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $29.99.
Bank of America (NYSE:BAC) last announced its earnings results on Wednesday, January 17th. The financial services provider reported $0.47 earnings per share for the quarter, beating the 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 firm had revenue of $20.69 billion for the quarter, compared to the consensus estimate of $21.61 billion. During the same quarter in the previous year, the business earned $0.40 EPS. The firm’s revenue for the quarter was up 3.5% on a year-over-year basis. equities research analysts predict that Bank of America will post 2.46 earnings per share for the current year.
Bank of America declared that its Board of Directors has initiated a share buyback program on Tuesday, December 5th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Bank of America by 1.4% in the second quarter. Vanguard Group Inc. now owns 661,494,339 shares of the financial services provider’s stock worth $16,047,853,000 after buying an additional 9,117,007 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Bank of America by 5.8% in the fourth quarter. Bank of New York Mellon Corp now owns 104,558,690 shares of the financial services provider’s stock worth $3,086,572,000 after buying an additional 5,720,403 shares during the period. TIAA CREF Investment Management LLC boosted its position in shares of Bank of America by 1.7% in the second 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 buying an additional 1,079,788 shares during the period. Legal & General Group Plc boosted its position in shares of Bank of America by 0.7% in the third quarter. Legal & General Group Plc now owns 51,176,903 shares of the financial services provider’s stock worth $1,296,863,000 after buying an additional 379,854 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Bank of America by 27.8% in the second 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 buying an additional 9,612,342 shares during the period. Institutional investors and hedge funds own 69.28% of the company’s stock.
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.
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