Bank of America (NYSE:BAC) Trading 1.3% Higher After Strong Earnings

Bank of America Co. (NYSE:BAC) shares traded 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. 18,181,063 shares were traded during trading, a decline of 53% from the average session volume of 38,706,770 shares. The stock had previously closed at $41.91.

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

Bank of America Announces Dividend

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

Bank of America announced that its board has approved a stock repurchase program on Wednesday, July 24th that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 7.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on BAC shares. Cfra reaffirmed a “sell” rating and issued a $39.00 price target on shares of Bank of America in a research report on Tuesday, July 16th. Barclays lifted their target price on Bank of America from $49.00 to $53.00 and gave the company an “overweight” rating in a research report on Wednesday. Keefe, Bruyette & Woods raised their price objective on Bank of America from $48.00 to $50.00 and gave the company an “outperform” rating in a research note on Wednesday. Morgan Stanley increased their target price on shares of Bank of America from $47.00 to $48.00 and gave the company an “overweight” rating in a report on Wednesday. Finally, Royal Bank of Canada restated an “outperform” rating and set a $46.00 price target on shares of Bank of America in a report on Wednesday, October 9th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $42.62.

Insider Transactions at Bank of America

In related news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of Bank of America stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $40.14, for a total value of $160,649,311.50. Following the completion of the sale, the insider now owns 776,614,511 shares of the company’s stock, valued at approximately $31,173,306,471.54. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of the firm’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 value of $160,649,311.50. Following the completion of the transaction, the insider now directly owns 776,614,511 shares of the company’s stock, valued at approximately $31,173,306,471.54. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Lindsay D. Hans sold 10,901 shares of the business’s stock in a transaction 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 directly owns 10,907 shares in the company, valued at $402,577.37. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 148,230,389 shares of company stock worth $6,023,064,684. 0.29% of the stock is owned by company insiders.

Institutional Investors Weigh In On Bank of America

Several hedge funds and other institutional investors have recently modified their holdings of BAC. American National Bank & Trust Co. VA bought a new stake in Bank of America during the 1st quarter worth approximately $1,322,000. Citizens Financial Group Inc. RI raised its position in shares of Bank of America by 27.1% in the first quarter. Citizens Financial Group Inc. RI now owns 98,189 shares of the financial services provider’s stock worth $3,734,000 after buying an additional 20,916 shares in the last quarter. Foster Group Inc. boosted its stake in Bank of America by 19.4% during the first quarter. Foster Group Inc. now owns 8,977 shares of the financial services provider’s stock valued at $340,000 after buying an additional 1,457 shares during the period. Councilmark Asset Management LLC purchased a new position in Bank of America during the first quarter worth about $771,000. Finally, SteelPeak Wealth LLC increased its stake in Bank of America by 37.7% in the 2nd quarter. SteelPeak Wealth LLC now owns 54,393 shares of the financial services provider’s stock worth $2,163,000 after acquiring an additional 14,901 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors.

Bank of America Trading Down 0.4 %

The stock has a market cap of $333.23 billion, a PE ratio of 14.80, a PEG ratio of 1.39 and a beta of 1.33. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.09. The firm has a fifty day simple moving average of $39.72 and a two-hundred day simple moving average of $39.35.

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