Trading Report: The Bank of America Corp. (BAC) Downgraded by Zacks Investment Research to “Sell”

The Bank of America Corp. (BAC) Downgraded by Zacks Investment Research to “Sell”

Bank of America Corp. (NYSE:BAC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

According to Zacks, “Bank of America is expected to report lower year over year earnings in the third-quarter 2016. Given the current market scenario we anticipate no further increase in interest rates in the near-term, which is likely to put margins under pressure. Also, the stress in the energy sector (though reduced now) is expected to hurt its asset quality in the near term. Further, lower trading volume is expected to hamper fee income growth and stringent regulations adds to the woes. However, effective cost containment measures and improving loan and deposit balances are impressive. Also, steady capital deployment activities depict balance sheet strength.”

Several other research analysts also recently weighed in on BAC. Wells Fargo & Co. reaffirmed a “buy” rating on shares of Bank of America Corp. in a report on Saturday, July 9th. Royal Bank Of Canada reaffirmed a “buy” rating on shares of Bank of America Corp. in a report on Saturday, July 9th. Jefferies Group reaffirmed a “buy” rating on shares of Bank of America Corp. in a report on Sunday, July 10th. Vetr downgraded shares of Bank of America Corp. from a “strong-buy” rating to a “buy” rating and set a $17.62 target price for the company. in a report on Tuesday. Finally, Buckingham Research reaffirmed a “buy” rating on shares of Bank of America Corp. in a report on Tuesday, June 21st. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and twenty-two have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $24.82.

10/05/bank-of-america-corp-bac-downgraded-by-zacks-investment-research-to-sell.html

Bank of America Corp. (NYSE:BAC) opened at 15.80 on Wednesday. The company has a market capitalization of $166.16 billion, a price-to-earnings ratio of 13.24 and a beta of 1.50. The stock has a 50 day moving average price of $15.59 and a 200-day moving average price of $14.44. Bank of America Corp. has a 12-month low of $10.99 and a 12-month high of $18.09.

Bank of America Corp. (NYSE:BAC) last issued its earnings results on Monday, July 18th. The financial services provider reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.03. The company earned $20.60 million during the quarter, compared to the consensus estimate of $20.41 billion. Bank of America Corp. had a net margin of 16.31% and a return on equity of 6.23%. Bank of America Corp.’s quarterly revenue was down 7.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.45 EPS. Equities analysts predict that Bank of America Corp. will post $1.26 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, September 23rd. Shareholders of record on Friday, September 2nd were paid a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 1.90%. This is an increase from Bank of America Corp.’s previous quarterly dividend of $0.05. The ex-dividend date was Wednesday, August 31st. Bank of America Corp.’s dividend payout ratio (DPR) is 24.59%.

In other news, Director Thomas D. Woods bought 25,000 shares of the stock in a transaction on Tuesday, August 2nd. The stock was bought at an average cost of $14.13 per share, for a total transaction of $353,250.00. Following the completion of the purchase, the director now directly owns 32,459 shares in the company, valued at $458,645.67. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.18% of the stock is currently owned by company insiders.

A number of large investors have recently made changes to their positions in BAC. BNP Paribas Arbitrage SA increased its stake in shares of Bank of America Corp. by 1.7% in the second quarter. BNP Paribas Arbitrage SA now owns 15,262,838 shares of the financial services provider’s stock valued at $202,537,000 after buying an additional 253,338 shares during the period. Kovitz Investment Group Partners LLC purchased a new stake in shares of Bank of America Corp. during the first quarter valued at $63,055,000. Markston International LLC increased its stake in shares of Bank of America Corp. by 1.5% in the second quarter. Markston International LLC now owns 888,280 shares of the financial services provider’s stock valued at $11,787,000 after buying an additional 13,088 shares during the period. ING Groep NV increased its stake in shares of Bank of America Corp. by 1.1% in the second quarter. ING Groep NV now owns 56,348,622 shares of the financial services provider’s stock valued at $747,183,000 after buying an additional 600,846 shares during the period. Finally, Seaward Management Limited Partnership increased its stake in shares of Bank of America Corp. by 0.4% in the second quarter. Seaward Management Limited Partnership now owns 1,902,169 shares of the financial services provider’s stock valued at $25,241,000 after buying an additional 7,429 shares during the period. Institutional investors own 60.68% of the company’s stock.

About Bank of America Corp.

Bank of America Corporation is a bank holding and financial holding company. The Company is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, corporations and governments with various banking, investing, asset management and other financial and risk management products and services.

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