Shareholders of Bank of America Corp (NYSE:BAC) can take a bit of a deep breath this morning, as the stock is finally trading up today after a couple pitiful weeks. The stock took a few major hits over the past few days, and has tumbled over 15% since January 29. Much of these falls have been in relation to fed rate increases and the falling price of oil. So why is the stock finally leveling off?
It is our opinion that the stock has finally found a bottom, one which is fairly close to its 52-week low. We all know that Bank of America Corp (NYSE:BAC) was able to make it through the last huge recession, so a few hiccups in the price of oil, and the Federal Reserve’s decision on rate increases won’t keep them down for long. It will be interesting to see how this stock reacts as the week continues. Will we see it make up some of the losses experienced over the previous two weeks, or will it tend to trade relatively flat? Only time will tell.
The stock is up 0.41% or $0.05 following the news, hitting $12.32 per share. About 41.99M shares traded hands. BAC has declined 27.57% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 18.10%.
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 51.14% above today’s ($12.32) 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 $125.38 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 9.56 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.