Now Is A Suitable Moment For A Long-Term Purchase Of Bank of America Corporation (NYSE: BAC)


Berkshire Hathaway, Inc. (Investm.. recently announced the acquisition of new stake in Bank of America Corporation (NYSE:BAC). The institutional investor has increased its shareholding in the Financial company by 11.66% to 1.03 billion shares with purchase of 107.84 million shares. This fresh investment now brings its stake to 11.91% valued currently at $25.7 billion.

With over 49.19 million Bank of America Corporation (BAC) shares trading Monday and a closing price of $25.74 on the day, the dollar volume was approximately $1.27 billion. The shares have shown a positive weekly performance of 0.19% and its price on 08/31/20 lost nearly -2.13%. Currently, there are 8.74B common shares owned by the public and among those 8.65B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for BAC have a consensus price objective of $28.10. The analysts have set the share’s price value over the next 12 months at a high of $38.00 and a low of $23.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Bank of America Corporation stock is 2.30 for the next 12 months. The average price target is 9.78% above its last price level and an upside to the estimated low will see the stock lose -11.91% over that period. But an upside of 32.26% will see the stock hit the forecast high price target while mean target price for the stock is $28.00.

Insiders at the company have transacted a total of 167 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 88 of these insider trades were purchases, accounting for 88,039,343 shares. Insider sales of the common stock occurred on 79 occasions, with total insider shares sold totaling 3,892,103 shares.

The top 3 mutual fund holders in Bank of America Corporation are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 222.17 million shares of the company’s stock, all valued at over $5.53 billion. The company bought an additional 1.69 million shares recently to bring their total holdings to about 2.56% of the shares outstanding. Vanguard 500 Index Fund bought 1.01 million shares to see its total holdings expand to 161.01 million shares valued at over $4.01 billion and representing 1.86% of the shares outstanding. Government Pension Fund – Global sold -9.8 million shares to bring its total holdings to over 94.92 million shares at a value of $2.36 billion. Government Pension Fund – Global now owns shares totaling to 1.09% of the shares outstanding.

Shares of Bank of America Corporation (NYSE: BAC) opened at $26.09, down -$0.21 from a prior closing price of $26.30. However, the script later closed the day at $25.74, down -2.13%. The company’s stock has a 5-day price change of 0.19% and 3.62% over the past three months. BAC shares are trading -26.92% year to date (YTD), with the 12-month market performance down to -6.43% lower. It has a 12-month low price of $17.95 and touched a high of $35.72 over the same period. Currently, 49.19 million shares have been traded, compared to an average intraday trading volume of 67.71 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.35%, 3.96%, and -6.58% respectively.

Institutional ownership of Bank of America Corporation (NYSE: BAC) shares accounts for 71.40% of the company’s 8.74B shares outstanding. Mutual fund holders own 34.50%, while other institutional holders and individual stakeholders account for 37.30% and 12.57% respectively.

It has a market capitalization of $220.89B and a beta (3y monthly) value of 1.56. The stock’s trailing 12-month PE ratio is 12.37, while the earnings-per-share (ttm) stands at $2.08. The company has a PEG of 5.30 and the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.00% over the week and 2.29% over the month.

Analysts forecast that Bank of America Corporation (BAC) will achieve an EPS of $0.4 for the current quarter, $0.39 for the next quarter and $2.13 for 2021. The lowest estimate earnings-per-share for the quarter is $0.28 while analysts give the company a high EPS estimate of $0.54. Comparatively, EPS for the current quarter was $0.56 a year ago. Earnings per share for the fiscal year are expected to increase by 5.60%, and 34.83% over the next financial year. EPS should shrink at an annualized rate of 2.33% over the next five years, compared to 45.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate Bank of America Corporation (BAC) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 12 of the 26 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BAC, a number of firms have released research notes about the stock. DA Davidson stated their Neutral rating for the stock in a research note on July 09, 2020, with the firm’s price target at $27-$25. Seaport Global Securities coverage for the Bank of America Corporation (BAC) stock in a research note released on July 08, 2020 offered a Neutral rating with a price target of. Societe Generale was of a view on July 07, 2020 that the stock is Buy, while Societe Generale gave the stock Hold rating on April 14, 2020, issuing a price target of. DA Davidson on their part issued Buy rating on April 02, 2020.


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