Ready to Jump After Recent Trade: Bank of America Corporation (BAC)

Bank of America Corporation (NYSE: BAC) stock jumped 0.25% on Thursday to $28.17 against a previous-day closing price of $28.10. With 40.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 64.1 million shares. During the session, the Banks – Diversified company that operates in wider Financial sector, reached to the highest price of $28.24 whereas the lowest price it dropped to was $27.88. The 52-week range on BAC shows that it touched its highest point at $38.60 and its lowest point at $26.32 during that stretch. It currently has a 1-year price target of $36.40. With its current market cap of 227.37 billion, BAC has annualized dividend of $0.88 while the current yield stands at 3.12%. Beta for the stock currently stands at 1.38.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BAC was down-trending over the past week, with a drop of -1.05%, but this was down by -0.95% over a month. Three-month performance dropped to -17.66% while six-month performance fell -24.86%. The stock lost -20.98% in the past year, while it has lost -14.95% so far this year. A look at the trailing 12-month EPS for BAC yields 3.32 with Next year EPS estimates of 3.37. For the next quarter, that number is 0.86. This implies an EPS growth rate of -10.80% for this year and -1.75% for next year. EPS is expected to grow by 3.36% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.90%.

Float and Shares Shorts:

At present, 8.07 billion BAC shares are outstanding with a float of 7.96 billion shares on hand for trading. On May 14, 2023, short shares totaled 82.47 million, which was 1.03% higher than short shares on Apr 13, 2023. In addition to Mr. Brian Thomas Moynihan as the firm’s Chairman, CEO & Pres, Mr. Alastair M. Borthwick serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 71.62% of BAC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.97% of BAC, in contrast to 33.16% held by mutual funds. Shares owned by individuals account for 13.68%. As the largest shareholder in BAC with 12.90% of the stake, Berkshire Hathaway, Inc. holds 1,032,852,006 shares worth 1,032,852,006. A second-largest stockholder of BAC, The Vanguard Group, Inc., holds 584,293,565 shares, controlling over 7.30% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BAC, holding 304,680,133 shares or 3.81% stake. With a 2.64% stake in BAC, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 211,391,119 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.05% of BAC stock, is the second-largest Mutual Fund holder. It holds 163,821,625 shares valued at 4.8 billion. Government Pension Fund – Global holds 1.27% of the stake in BAC, owning 102,073,372 shares worth 2.99 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BAC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BAC analysts setting a high price target of $47.00 and a low target of $28.00, the average target price over the next 12 months is $35.94. Based on these targets, BAC could surge 66.84% to reach the target high and fall by -0.6% to reach the target low. Reaching the average price target will result in a growth of 27.58% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded BAC stock several times over the past three months with 12 Buys and 12 Sells. In these transactions, 978,173 shares were bought while 563,681 shares were sold. The number of buy transactions has increased to 102 while that of sell transactions has risen to 112 over the past year. The total number of shares bought during that period was 3,474,347 while 2,178,587 shares were sold.

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