Wednesday, 24 October, 2018

Bank of America Beats Estimates as Bond-Trading Surge Matches Rivals

Nellie Chapman | 19 April, 2017, 00:49

If you want a bullish hedged trade on the stock, consider a July 15/20 bull-put credit spread for a 35-cent credit. The stock has an average rating of "Buy" and an average price target of $22.09.

BAC was recently trading at $22.50, down $3.30 from its 12-month high and $10.45 above its 12-month low. Different analysts and financial institutions use various valuation methods and consider different economic forces when deciding on a price target.

Bank of America relies heavily on higher interest rates to maximize profits as it has a large stock of deposits and rate-sensitive mortgage securities. Acadian Asset Management LLC boosted its position in shares of Bank of America Corp by 36.3% in the third quarter. State Street Corp now owns 487,330 shares of the financial services provider's stock valued at $10,751,000 after buying an additional 41,842 shares during the last quarter. Typically, they estimate what the company's earnings and cash flow will be for the next couple of years, and then apply a ratio - such as a price-to-earnings ratio - to those estimates to determine what the future stock price should theoretically be. The number of shares now owned by investors are 10.01 bln. For the quarter, shares have been noted at -0.57%.

In this Thursday, April 13, 2017, photo, a man uses a Bank of America ATM near the company's headquarters in Charlotte, N.C. Bank of America Corporation reports earnings Tuesday, April 18, 2017. Vetr raised shares of Bank of America Corp from a "buy" rating to a "strong-buy" rating and set a $26.88 target price on the stock in a research note on Tuesday, March 21st. The return on assets ratio shows how well management is employing the company's total assets to make a profit.

The gains in net-interest income will be "much more modest" next quarter, Chief Financial Officer Paul Donofrio said. On an adjusted basis, revenue of $22.45 billion compared with analysts' expected figure of $21.61 billion. While some analysts expressed skepticism Bank of America will be able to hit a $53 billion expense target in 2018, they were not too troubled in light of stronger revenues.

A moving average (MA) is a trend-following or lagging indicator because it is based on past prices. The Average Volume (3 months) is 96.23 Million. Moving average strategies are also popular and can be tailored to any time frame, suiting both long term investors and short-term traders. In this case, shares are 373.46% higher from $2.6, the worst price in 52 weeks suffered on April. 21, 2016, and are keeping their losses at 85.95% for the past six months. The stock's market capitalization is 880.31M, it has a 52-week low of 15.21 and a 52-week high of 25.13. The firm owned 1,714,914 shares of the financial services provider's stock after buying an additional 1,335,275 shares during the period.

Bank of America Corporation is a bank holding company and a financial holding company.

Bank of America Corporation (BAC) has a mean recommendation of 1.7, according to data compiled by Zacks Investment Research. One analyst has rated the stock with a sell rating, seven have issued a hold rating, twenty-seven have assigned a buy rating and one has issued a strong buy rating to the stock. It improved, as 4 investors sold Seacoast Banking Corporation of Florida shares while 28 reduced holdings. The research firm Downgrade the stock to Neutral.