While the initial spike in most banking stocks seemed obvious following the Federal Reserve’s announcement of a 0.25% rate hike this afternoon, shares of Bank of America Corp (NYSE:BAC) have been trading all over the place following their initial 2 p.m. ET spike. Shares of Bank of America Corp (NYSE:BAC) spiked to $17.73 immediately following the Fed’s announcement, but then quickly gave back their gains and then some. By approximately 2:30 p.m. shares plunged into the red to $17.32, before eventually jumping back up in the 30 minutes that followed.
While much the gains from the Fed announcement were likely already priced in, investors may have left some leaway in in case the Fed decided to hold rates steady. The stock is currently trading higher by 1.55% or $0.27 following the positive news, hitting $17.69 per share at the time of us publishing this article. About 109.27M shares traded hands or up 38.77% from the average. BAC has risen 5.77% since May 13, 2015 and is currently uptrending. It has outperformed the S&P500 by 9.44%.
From a total of 15 analysts covering Bank of America (NYSE:BAC) stock, 10 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $21 while the lowest target price is $17. The mean of all analyst targets is $18.97 which is 7.24% above today’s ($17.69) stock price. Bank of America was the topic of 30 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Jefferies maintained shares on October 7 with a “Buy” rating. Robert W. Baird upgraded shares to a”Neutral” rating and a $18.0 target share price in their report from an August 25. Bernstein upgraded BAC stock in a recent report from September 1 to a “Buy” rating. Bernstein upgraded the rating on August 25. Bernstein has a “Mkt Perform” rating and a $19.0 price target on shares. Finally, Macquarie Research upgraded the stock to a “Hold” rating in a report they issued on a September 1.
The institutional sentiment increased to 1.33 in Q2 2015. It’s up 0.32, from 1.01 in 2015Q2. The ratio increased, as 82 funds sold all their Bank of America Corp shares they owned while 453 reduced their positions. 122 funds bought stakes while 590 increased their total positions. Institutions now own 6.30 billion shares which is 0.74% less than the previous share count of 6.35 billion in 2015Q2.
Mizuho Bank Ltd. holds 56.87% of its total portfolio in Bank of America Corp, equating to 31.25 million shares. Boyle Capital Management Llc owns 1.88 million shares representing 38.47% of their total US portfolio. Moreover, Daily Journal Corp has 28.98% of their total portfolio invested in the company, equating to 2.30 million shares. The Netherlands-based Rabobank Nederland Fi has a total of 27.83% of their portfolio invested in the stock. First Trust Bank Ltd., a Bahamas-based fund reported 380,720 shares owned.
Since July 23, 2015, the stock had 0 buys, and 1 sale for a total of $135,831 in net activity. Nguyen Thong M sold 7,520 shares worth $135,831.
Bank of America Corporation is a bank holding firm and a financial holding company. The company has a market cap of $183.41 billion. The Firm is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, firms and Governments with a range of banking, investing, asset management and other financial and risk management services and products. It has 13.1 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.