Bank of America Corp (NYSE:BAC) shares have taken quite a hit in trading today, in what has left some investors wondering why. Typically in any given day, shares of the company’s stock don’t fluctuate all that much. However, today is one of those exceptions. So what exactly is causing today’s tumble?
The most likely cause is the continual falling oil prices, which have been ongoing for some time now. This concerns some investors who look at Bank of America Corp (NYSE:BAC)’s large inventory of energy related loans outstanding. Energy loans make up $21.3 billion for the company which is close to 2% of all loans for Bank of America. Still though, this downside move has many investors perplexed.
“Why is this stock down almost 4% still when C and JPM are only down 1.5% and oil is rallying 6%,” asked one investor via social stock website, StockTwits.
The stock is down 4.42% or $0.58 following the news, hitting $12.65 per share. About 153.03M shares traded hands or 34.07% up from the average. BAC has declined 21.67% since June 29, 2015 and is downtrending. It has underperformed the S&P500 by 14.16%.
From a total of 19 analysts covering Bank of America (NYSE:BAC) stock, 14 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 74% of the ratings are positive. The highest target price is $21 while the lowest target price is $15. The mean of all analyst targets is $18.62 which is 47.19% above today’s ($12.65) stock price. Bank of America was the topic of 35 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. CLSA upgraded shares on January 29 to a “Outperform” rating. Robert W. Baird upgraded shares to a”Neutral” rating and a $18.0 target share price in their report from an August 25. Deutsche Bank maintained BAC stock in a recent report from January 26 with 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, Jefferies maintained the stock with a “Buy” rating in a report they issued on an October 7.
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.
Bank of America Corporation is a bank holding firm and a financial holding company. The company has a market cap of $143.94 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 9.81 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.