Bank of America (NYSE:BAC) Trading 4.2% Higher Following Better-Than-Expected Earnings

Bank of America Co. (NYSE:BAC) shares shot up 4.2% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $38.75 and last traded at $38.21. 36,852,765 shares were traded during mid-day trading, a decline of 6% from the average session volume of 39,231,248 shares. The stock had previously closed at $36.67.

The financial services provider reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.10. Bank of America had a return on equity of 10.29% and a net margin of 14.10%.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 28th. Investors of record on Friday, March 7th were issued a dividend of $0.26 per share. The ex-dividend date was Friday, March 7th. This represents a $1.04 annualized dividend and a dividend yield of 2.73%. Bank of America’s payout ratio is 32.30%.

Analyst Upgrades and Downgrades

BAC has been the subject of several analyst reports. Barclays upped their target price on Bank of America from $53.00 to $58.00 and gave the stock an “overweight” rating in a research report on Monday, January 6th. JPMorgan Chase & Co. cut their price objective on shares of Bank of America from $49.50 to $43.50 and set an “overweight” rating on the stock in a report on Thursday, April 3rd. Hsbc Global Res raised Bank of America from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 7th. Robert W. Baird upgraded shares of Bank of America from a “neutral” rating to an “outperform” rating and increased their price objective for the company from $45.00 to $50.00 in a research note on Friday, March 7th. Finally, Baird R W upgraded Bank of America from a “hold” rating to a “strong-buy” rating in a research report on Friday, March 7th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, fifteen have given a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat, Bank of America presently has an average rating of “Moderate Buy” and a consensus price target of $48.31.

Institutional Investors Weigh In On Bank of America

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in Bank of America during the fourth quarter worth about $5,226,989,000. Capital World Investors raised its holdings in shares of Bank of America by 23.9% during the fourth quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider’s stock valued at $3,876,853,000 after acquiring an additional 17,031,143 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in shares of Bank of America by 10.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider’s stock valued at $5,381,126,000 after buying an additional 11,691,451 shares in the last quarter. Amundi grew its position in Bank of America by 37.1% during the fourth quarter. Amundi now owns 37,819,980 shares of the financial services provider’s stock valued at $1,747,658,000 after purchasing an additional 10,231,001 shares in the last quarter. Finally, Northern Trust Corp grew its stake in Bank of America by 17.2% in the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider’s stock valued at $2,985,785,000 after purchasing an additional 9,980,859 shares in the last quarter. Institutional investors own 70.71% of the company’s stock.

Bank of America Stock Performance

The company has a market capitalization of $289.86 billion, a price-to-earnings ratio of 11.88, a price-to-earnings-growth ratio of 1.21 and a beta of 1.24. The firm has a 50-day simple moving average of $42.04 and a two-hundred day simple moving average of $43.70. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.04.

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.