While the company themselves continues to rake in profits, Bank of America Corp (NYSE:BAC) shareholders are losing quite a bit on paper this year. Today the stock has plunged along with the general market, and investors question just when the bleeding may stop.
Shares of Bank of America Corp (NYSE:BAC) are at their lowest levels in more than three years as the stock continues to sink on economic and fiscal worry. Trading at a PE ratio of just 8.67 and a future PE ratio of just under 7.5, according to analyst estimates for 2016, the stock is now an incredible value play if you believe the company is on solid footing. With a dividend yield of 1.79%, investors are also paid to wait for the stock to rebound. This year alone the stock is down more than a third, and there really hasn’t been a huge amount of bad news from the company to warrant the decline. While investors are certainly worried about the Fed’s next move, there is no doubt that the stock is in oversold terrotory.
The stock is down 6.25% or $0.74 following the news, hitting $11.18 per share. Approximately 120.82 million shares traded hands. BAC shares have declined 26.28% since July 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 17.41%.
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 69.68% above today’s ($11.18) 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 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 $114.26 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 8.67 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.