Bank of America (NYSE:BAC) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Posted by Defense World Staff on Jul 19th, 2023

Shares of Bank of America Co. (NYSE:BAC) saw an uptick in trading volume on Tuesday following a better than expected earnings announcement. 28,647,851 shares were traded during trading, a decline of 45% from the previous session’s volume of 51,705,719 shares.The stock last traded at $30.47 and had previously closed at $29.40.

The financial services provider reported $0.88 EPS for the quarter, topping the consensus estimate of $0.84 by $0.04. The firm had revenue of $25.20 billion for the quarter, compared to the consensus estimate of $24.98 billion. Bank of America had a net margin of 21.85% and a return on equity of 11.72%. The business’s quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.73 earnings per share.

Bank of America Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 30th. Shareholders of record on Friday, June 2nd were given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 2.86%. The ex-dividend date of this dividend was Thursday, June 1st. Bank of America’s payout ratio is 26.43%.

Wall Street Analyst Weigh In

Several research firms have commented on BAC. StockNews.com began coverage on shares of Bank of America in a research report on Thursday, May 18th. They set a “hold” rating on the stock. Keefe, Bruyette & Woods upped their price target on shares of Bank of America from $28.00 to $29.00 and gave the company an “underperform” rating in a report on Wednesday, April 19th. JPMorgan Chase & Co. decreased their price target on shares of Bank of America from $38.00 to $34.00 and set an “overweight” rating for the company in a report on Monday, April 10th. Wells Fargo & Company decreased their price target on shares of Bank of America from $45.00 to $40.00 in a report on Thursday, July 6th. Finally, The Goldman Sachs Group decreased their price target on shares of Bank of America from $39.00 to $35.00 and set a “buy” rating for the company in a report on Monday, April 3rd. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, Bank of America has an average rating of “Hold” and a consensus price target of $36.72.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Legend Financial Advisors Inc. lifted its stake in Bank of America by 6,772.7% during the fourth quarter. Legend Financial Advisors Inc. now owns 756 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 745 shares during the period. Tanglewood Legacy Advisors LLC bought a new position in shares of Bank of America in the fourth quarter valued at approximately $26,000. FNY Investment Advisers LLC raised its stake in shares of Bank of America by 75.9% in the second quarter. FNY Investment Advisers LLC now owns 920 shares of the financial services provider’s stock valued at $26,000 after acquiring an additional 397 shares during the last quarter. Castleview Partners LLC bought a new position in shares of Bank of America in the first quarter valued at approximately $28,000. Finally, Grey Fox Wealth Advisors LLC bought a new position in shares of Bank of America in the fourth quarter valued at approximately $35,000. Institutional investors own 67.34% of the company’s stock.

Bank of America Stock Up 4.5 %

The business’s 50 day moving average price is $28.61 and its 200-day moving average price is $30.67. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.82 and a quick ratio of 0.82. The company has a market cap of $244.81 billion, a P/E ratio of 9.23, a PEG ratio of 1.23 and a beta of 1.36.

About Bank of America

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Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans.