Yesterday, we reported that Bank of America Corp (NYSE:BAC) stock had taken a hit, falling over 4% in trading. Typically shares of the stock trade quite steady, not changing by more than 1-2% in a given day. Yesterday was an exception though, mostly because of the continual struggle that we’ve seen with oil prices. Because of the large amount of oil related loans that the company holds, investors have become a bit weary. However, today, the stock is back up, making up most of yesterday’s losses, partially thanks to CNBC’s Jim Cramer discussing the stock on today’s show.
There is plenty to like about Bank of America Corp (NYSE:BAC), and investors who are long in the company certainly have a lot to look forward to. One such caveat is the fact that the company is working very hard on integrating Apple Pay as well as other mobile wallets into their ATMs, meaning easier ways to pay and get cash out of the bank, not only at ATMs but also at retail stores around the world. With the stock falling around 20% since the start of the new year, bargain shoppers are beginning to realize that the company is actually quite a good buy at the discounted rate.
It will be interesting to follow trading as the day unfolds and see if the stock can hold their current gains. The stock is up 3.30% or $0.43 following the news, hitting $13.46 per share. About 48.72 million shares traded hands. BAC has declined 23.44% since June 30, 2015 and is downtrending. It has underperformed the S&P500 by 16.14%.
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 38.34% above today’s ($13.46) 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 improved, 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 $137.41 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 10.44 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.