Bank of America Corp’s (BAC) Fourth Quarter Results Beat Most Expectations


Shares of Bank of America Corp (NYSE:BAC) are up $0.31 or 2.18% in the pre-market this morning after the company reported their fourth quarter earnings just moments ago. In this most recent report the company disclosed that profits have risen 9.4% year over year on fixed-income gains.

“We saw solid customer activity in loan growth, deposits, and wealth management asset flows, and we returned more capital to our shareholders,” Chief Executive Officer Brian T. Moynihan stated. “As we build on this progress, we will continue to invest in the future and manage expenses.”

Revenue for the quarter came in $19.5 billion, a gain of 4.3% from the year prior, while Bank of America’s (NYSE:BAC) expenses dropped approximately 2% to $13.9 billion. It has been one of Moynihan’s main goals to reduce expenses , and that appears to be just what he has been doing. As rates remain low, reducing expenses is a great way to increase profits in this harsh environment.

The stock decreased 3.70% or $0.55 during the last trading session, hitting $14.44. Approximately 223,624 shares traded hands. BAC shares have declined 17.32% since June 12, 2015 and are currently downtrending. It has underperformed the S&P500 by 8.46%.

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 31.37% above today’s ($14.44) 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.

Bank of America Corporation is a bank holding firm and a financial holding company. The company has a market cap of $150.56 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 10.69 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.