BMO Capital Markets Raises Bank of America (BAC) Price Target to $36.00

Bank of America (NYSE:BAC) had its price target upped by BMO Capital Markets from $35.00 to $36.00 in a report released on Tuesday, Marketbeat reports. They currently have a market perform rating on the financial services provider’s stock.

Separately, Wolfe Research began coverage on Bank of America in a report on Tuesday, September 25th. They set an outperform rating on the stock. Six investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $34.19.

NYSE:BAC opened at $28.25 on Tuesday. Bank of America has a 12 month low of $25.81 and a 12 month high of $33.05. The company has a quick ratio of 0.90, a current ratio of 0.91 and a debt-to-equity ratio of 0.98. The company has a market cap of $296.04 billion, a price-to-earnings ratio of 12.14, a PEG ratio of 1.42 and a beta of 1.30.

Bank of America (NYSE:BAC) last posted its quarterly earnings data on Monday, October 15th. The financial services provider reported $0.66 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.62 by $0.04. Bank of America had a return on equity of 10.82% and a net margin of 21.85%. The company had revenue of $22.78 billion during the quarter, compared to analyst estimates of $22.63 billion. During the same period in the previous year, the business earned $0.48 EPS. Bank of America’s quarterly revenue was up 3.2% on a year-over-year basis. Equities research analysts forecast that Bank of America will post 2.55 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Friday, September 28th. Stockholders of record on Friday, September 7th were issued a dividend of $0.15 per share. This is a boost from Bank of America’s previous quarterly dividend of $0.12. This represents a $0.60 annualized dividend and a dividend yield of 2.12%. The ex-dividend date of this dividend was Thursday, September 6th. Bank of America’s payout ratio is currently 32.79%.

Bank of America declared that its Board of Directors has authorized a stock buyback program on Thursday, June 28th that authorizes the company to buyback $20.60 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 7.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

In related news, insider Catherine P. Bessant sold 15,820 shares of the company’s stock in a transaction that occurred on Thursday, August 9th. The stock was sold at an average price of $31.61, for a total value of $500,070.20. Following the transaction, the insider now directly owns 483,680 shares in the company, valued at $15,289,124.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.10% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Signature Estate & Investment Advisors LLC lifted its holdings in Bank of America by 2.9% in the third quarter. Signature Estate & Investment Advisors LLC now owns 766,451 shares of the financial services provider’s stock valued at $22,580,000 after acquiring an additional 21,593 shares during the last quarter. TIAA FSB raised its position in Bank of America by 3.7% in the third quarter. TIAA FSB now owns 695,370 shares of the financial services provider’s stock valued at $20,486,000 after purchasing an additional 24,890 shares during the period. Empirical Finance LLC raised its position in Bank of America by 12.5% in the third quarter. Empirical Finance LLC now owns 18,943 shares of the financial services provider’s stock valued at $558,000 after purchasing an additional 2,100 shares during the period. Westbourne Investment Advisors Inc. raised its position in Bank of America by 7.2% in the third quarter. Westbourne Investment Advisors Inc. now owns 229,725 shares of the financial services provider’s stock valued at $6,768,000 after purchasing an additional 15,415 shares during the period. Finally, First Citizens Bank & Trust Co. raised its position in Bank of America by 1.8% in the third quarter. First Citizens Bank & Trust Co. now owns 308,738 shares of the financial services provider’s stock valued at $9,095,000 after purchasing an additional 5,494 shares during the period. Hedge funds and other institutional investors own 65.15% of the company’s stock.

Bank of America Company Profile

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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Analyst Recommendations for Bank of America (NYSE:BAC)

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