Zacks Investment Research Downgrades Bank of America Corporation (BAC) to Sell

Bank of America Corporation (NYSE:BAC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Bank of America’s shares have outperformed the industry, over the past six months. This price performance is backed by impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Yet, dismal fee income growth remains a key concern. Specifically, fall in mortgage banking income owing to lower volumes and decline in refinancing along with uncertainty related to performance of capital markets make us apprehensive. Gloomy outlook for trading revenues is a concern as well. However, rising interest rates, increase in loan and deposit balances, and efforts to streamline and simplify operations are expected to continue supporting the company's profitability.”

A number of other research firms have also weighed in on BAC. Citigroup Inc. reaffirmed a “neutral” rating and set a $27.00 price objective (up previously from $25.00) on shares of Bank of America Corporation in a research report on Monday. Vetr lowered Bank of America Corporation from a “hold” rating to a “sell” rating and set a $25.08 price objective for the company. in a research report on Wednesday, October 4th. Robert W. Baird reaffirmed a “hold” rating and set a $24.00 price objective on shares of Bank of America Corporation in a research report on Sunday, October 1st. BidaskClub raised Bank of America Corporation from a “sell” rating to a “hold” rating in a research report on Friday, September 22nd. Finally, CIBC reaffirmed an “outperform” rating on shares of Bank of America Corporation in a research report on Tuesday, July 11th. Two research analysts have rated the stock with a sell rating, eleven have issued a hold rating, twenty-two have assigned a buy rating and two have given a strong buy rating to the company. Bank of America Corporation presently has a consensus rating of “Buy” and an average target price of $24.88.

Shares of Bank of America Corporation (NYSE BAC) traded down 0.50% on Tuesday, hitting $25.70. The company had a trading volume of 8,355,316 shares. Bank of America Corporation has a 52 week low of $15.60 and a 52 week high of $26.30. The stock has a market capitalization of $270.27 billion, a PE ratio of 15.31 and a beta of 1.25. The firm’s 50 day moving average price is $24.60 and its 200-day moving average price is $23.90.

Bank of America Corporation (NYSE:BAC) last posted its quarterly earnings data on Tuesday, July 18th. The financial services provider reported $0.46 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.43 by $0.03. Bank of America Corporation had a return on equity of 8.11% and a net margin of 20.28%. The company had revenue of $22.80 billion during the quarter, compared to analyst estimates of $21.84 billion. During the same quarter last year, the company earned $0.41 EPS. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. Analysts forecast that Bank of America Corporation will post $1.80 earnings per share for the current fiscal year.

Bank of America Corporation announced that its board has approved a share buyback plan on Wednesday, June 28th that allows the company to buyback $12.00 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 4.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

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In other Bank of America Corporation news, Director Frank P. Bramble sold 86,763 shares of the firm’s stock in a transaction dated Thursday, August 10th. The stock was sold at an average price of $24.16, for a total transaction of $2,096,194.08. Following the sale, the director now directly owns 50,000 shares of the company’s stock, valued at $1,208,000. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.18% of the stock is owned by company insiders.

Large investors have recently bought and sold shares of the business. Northwest Investment Counselors LLC bought a new stake in Bank of America Corporation during the second quarter valued at about $100,000. Armbruster Capital Management Inc. increased its holdings in shares of Bank of America Corporation by 10.8% in the first quarter. Armbruster Capital Management Inc. now owns 4,323 shares of the financial services provider’s stock worth $102,000 after purchasing an additional 423 shares during the last quarter. Chicago Partners Investment Group LLC increased its holdings in shares of Bank of America Corporation by 11.0% in the second quarter. Chicago Partners Investment Group LLC now owns 4,531 shares of the financial services provider’s stock worth $103,000 after purchasing an additional 450 shares during the last quarter. MPS Loria Financial Planners LLC bought a new stake in shares of Bank of America Corporation in the second quarter worth about $115,000. Finally, Tarbox Family Office Inc. increased its holdings in shares of Bank of America Corporation by 0.4% in the second quarter. Tarbox Family Office Inc. now owns 4,809 shares of the financial services provider’s stock worth $117,000 after purchasing an additional 21 shares during the last quarter. 61.64% of the stock is currently owned by institutional investors and hedge funds.

About Bank of America Corporation

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S.

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