Research analysts at Oppenheimer have lowered their price target for Bank of America (NYSE: BAC) from $57.00 to $55.00, as detailed in a research note released on Wednesday, October 15, 2023. Despite this reduction, Oppenheimer maintains an “outperform” rating for the financial services provider’s stock, indicating a belief in its potential for growth. The new price target suggests a possible upside of approximately 5.43% based on the stock’s current market price.
Several other financial institutions have also updated their outlooks on Bank of America recently. Wolfe Research raised its price objective from $57.00 to $58.00 on October 7, 2023, while assigning an “outperform” rating. Seaport Global Securities increased its target from $59.00 to $66.00, also giving the stock a “buy” rating in a report dated October 6, 2023. Similarly, Daiwa Capital Markets adjusted its price target from $54.00 to $58.00 with an “outperform” rating on October 8, 2023, and Robert W. Baird raised its target from $52.00 to $56.00 on October 30, 2023, while maintaining a “neutral” rating.
Currently, the consensus among analysts is favorable, with twenty-three rating the stock as a Buy and five recommending a Hold. According to data from MarketBeat.com, the average price target across analysts stands at $57.77.
Recent Earnings Report and Stock Buyback Plan
On October 15, 2023, Bank of America reported earnings that exceeded analysts’ expectations. The financial institution posted earnings per share (EPS) of $1.06 for the quarter, surpassing the consensus estimate of $0.93 by $0.13. The bank’s return on equity was 10.76%, with a net margin of 15.70%. Revenue for the quarter reached $5.35 billion, compared to analysts’ estimates of $27.05 billion, marking a 10.8% increase year-over-year from the previous quarter’s $0.81 EPS.
In a significant move, the Board of Directors approved a stock repurchase plan on July 23, 2023, allowing the company to buy back up to $40.00 billion in outstanding shares. This plan could enable Bank of America to repurchase approximately 11.1% of its shares through open market transactions, often interpreted as a sign that management considers the stock to be undervalued.
Institutional Investors’ Activity
Recent changes in institutional investor positions also reflect growing confidence in Bank of America. For instance, Brighton Jones LLC increased its stake by 30.0% in the fourth quarter, holding 108,872 shares valued at about $4.79 million after acquiring an additional 25,143 shares. Northern Financial Advisors Inc raised its holdings by 1.8% during the first quarter, now owning 14,383 shares worth $600,000.
Other notable increases include PFG Advisors, which raised its shareholding by 3.8%, and Proficio Capital Partners LLC, which boosted its stake by 6.0%. Overall, hedge funds and institutional investors control 70.71% of Bank of America’s stock, indicating strong institutional support.
Bank of America operates globally, providing a range of banking and financial products and services. It segments its operations into Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets, catering to individual consumers, businesses, and governments alike.
This comprehensive evaluation of Bank of America’s stock performance and institutional activity illustrates a dynamic landscape for investors as the financial services provider continues to adapt to market changes.
