Bank of America (NYSE:BAC) Trading 1.3% Higher Following Earnings Beat

Bank of America Co. (NYSE:BAC)’s stock price was up 1.3% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $43.30 and last traded at $42.47. Approximately 18,181,063 shares changed hands during trading, a decline of 53% from the average daily volume of 38,706,770 shares. The stock had previously closed at $41.91.

The financial services provider reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.78 by $0.03. The company had revenue of $25.30 billion for the quarter, compared to the consensus estimate of $25.25 billion. Bank of America had a net margin of 13.28% and a return on equity of 10.56%. Bank of America’s revenue was up .4% on a year-over-year basis. During the same quarter last year, the firm posted $0.90 earnings per share.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Friday, December 6th will be paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.44%. The ex-dividend date is Friday, December 6th. Bank of America’s dividend payout ratio is presently 35.99%.

Bank of America declared that its Board of Directors has approved a share buyback plan on Wednesday, July 24th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 7.6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have recently commented on BAC shares. Barclays raised their target price on shares of Bank of America from $49.00 to $53.00 and gave the company an “overweight” rating in a research note on Wednesday. Oppenheimer raised their target price on shares of Bank of America from $49.00 to $50.00 and gave the company an “outperform” rating in a research note on Wednesday. Piper Sandler raised shares of Bank of America from an “underweight” rating to a “neutral” rating and raised their price target for the company from $37.00 to $42.00 in a report on Tuesday, July 9th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $46.00 price target on shares of Bank of America in a report on Wednesday, October 9th. Finally, Piper Sandler Companies raised shares of Bank of America from an “underweight” rating to a “neutral” rating and raised their price target for the company from $37.00 to $42.00 in a report on Tuesday, July 9th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $42.62.

Insiders Place Their Bets

In other news, insider Lindsay D. Hans sold 10,901 shares of Bank of America stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $36.91, for a total value of $402,355.91. Following the transaction, the insider now owns 10,907 shares of the company’s stock, valued at $402,577.37. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. In other news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of the business’s stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $40.14, for a total transaction of $160,649,311.50. Following the sale, the insider now owns 776,614,511 shares in the company, valued at $31,173,306,471.54. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Lindsay D. Hans sold 10,901 shares of the business’s stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $36.91, for a total transaction of $402,355.91. Following the sale, the insider now owns 10,907 shares in the company, valued at $402,577.37. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 148,230,389 shares of company stock worth $6,023,064,684. 0.29% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Bank of America

Large investors have recently made changes to their positions in the company. Delos Wealth Advisors LLC raised its holdings in shares of Bank of America by 402.2% during the first quarter. Delos Wealth Advisors LLC now owns 683 shares of the financial services provider’s stock valued at $26,000 after acquiring an additional 547 shares during the period. Fairway Wealth LLC acquired a new stake in shares of Bank of America during the second quarter valued at approximately $27,000. POM Investment Strategies LLC increased its stake in Bank of America by 839.0% in the 2nd quarter. POM Investment Strategies LLC now owns 723 shares of the financial services provider’s stock valued at $29,000 after buying an additional 646 shares during the period. Bbjs Financial Advisors LLC acquired a new position in Bank of America in the 2nd quarter valued at approximately $30,000. Finally, Northwest Investment Counselors LLC acquired a new position in Bank of America in the 1st quarter valued at approximately $33,000. Institutional investors and hedge funds own 70.71% of the company’s stock.

Bank of America Trading Down 0.4 %

The stock has a market cap of $333.23 billion, a price-to-earnings ratio of 14.80, a price-to-earnings-growth ratio of 1.39 and a beta of 1.33. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.80 and a current ratio of 0.80. The company’s 50 day simple moving average is $39.72 and its two-hundred day simple moving average is $39.35.

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