Stock Buyback Plan Approved by Bank of America (BAC) Board

Bank of America (NYSE:BAC) declared that its board has initiated a stock buyback program, which allows the company to repurchase $20.60 billion in shares on Thursday, June 28th. This repurchase authorization allows the financial services provider to buy up to 7.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Bank of America traded down $0.48, hitting $28.19, during trading hours on Friday, Marketbeat reports. 102,227,234 shares of the company’s stock traded hands, compared to its average volume of 70,981,102. The firm has a market capitalization of $289.28 billion, a price-to-earnings ratio of 15.40, a PEG ratio of 1.40 and a beta of 1.34. Bank of America has a twelve month low of $22.75 and a twelve month high of $33.05. The company has a current ratio of 0.92, a quick ratio of 0.91 and a debt-to-equity ratio of 0.96.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Monday, April 16th. The financial services provider reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.03. The firm had revenue of $23.10 billion for the quarter, compared to analyst estimates of $23.04 billion. Bank of America had a return on equity of 9.40% and a net margin of 19.65%. Bank of America’s quarterly revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.41 earnings per share. equities analysts forecast that Bank of America will post 2.53 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 29th. Investors of record on Friday, June 1st will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.70%. The ex-dividend date of this dividend is Thursday, May 31st. Bank of America’s payout ratio is 26.23%.

Several analysts have recently weighed in on BAC shares. Credit Suisse Group upped their price objective on Bank of America from $35.00 to $36.00 and gave the company an “outperform” rating in a report on Friday, March 16th. Citigroup upped their target price on Bank of America from $32.00 to $34.00 and gave the company a “neutral” rating in a report on Tuesday, April 24th. Vetr raised Bank of America from a “hold” rating to a “buy” rating and set a $34.16 target price for the company in a report on Thursday, March 1st. ValuEngine downgraded Bank of America from a “buy” rating to a “hold” rating in a report on Wednesday, April 18th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $34.00 target price on shares of Bank of America in a report on Tuesday, April 17th. Nine investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $32.13.

About Bank of America

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. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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