Bank of America Corp Forecasted to Earn Q4 2018 Earnings of $0.66 Per Share (BAC)

Bank of America Corp (NYSE:BAC) – Research analysts at Jefferies Financial Group raised their Q4 2018 earnings per share (EPS) estimates for shares of Bank of America in a note issued to investors on Monday, October 15th. Jefferies Financial Group analyst K. Usdin now anticipates that the financial services provider will earn $0.66 per share for the quarter, up from their previous forecast of $0.64. Jefferies Financial Group also issued estimates for Bank of America’s Q1 2019 earnings at $0.69 EPS, Q2 2019 earnings at $0.72 EPS, Q3 2019 earnings at $0.71 EPS, Q4 2019 earnings at $0.73 EPS and FY2020 earnings at $3.25 EPS.

A number of other equities analysts also recently weighed in on BAC. Wolfe Research started coverage on shares of Bank of America in a research note on Tuesday, September 25th. They set an “outperform” rating for the company. BMO Capital Markets lifted their target price on shares of Bank of America from $35.00 to $36.00 and gave the stock a “market perform” rating in a research note on Tuesday. Six investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Bank of America presently has an average rating of “Buy” and an average target price of $34.19.

BAC stock opened at $28.53 on Wednesday. The firm has a market cap of $301.78 billion, a PE ratio of 15.59, a price-to-earnings-growth ratio of 1.46 and a beta of 1.30. Bank of America has a 52-week low of $25.81 and a 52-week high of $33.05. The company has a quick ratio of 0.90, a current ratio of 0.91 and a debt-to-equity ratio of 0.94.

Bank of America (NYSE:BAC) last released its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.04. The firm had revenue of $22.78 billion during the quarter, compared to the consensus estimate of $22.63 billion. Bank of America had a net margin of 20.86% and a return on equity of 10.06%. The company’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.48 earnings per share.

The company also recently announced a quarterly dividend, which was paid on Friday, September 28th. Investors of record on Friday, September 7th were paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 2.10%. The ex-dividend date was Thursday, September 6th. This is an increase from Bank of America’s previous quarterly dividend of $0.12. Bank of America’s dividend payout ratio (DPR) is currently 32.79%.

Bank of America declared that its Board of Directors has initiated a share repurchase plan on Thursday, June 28th that allows the company to buyback $20.60 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 7.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

In related news, insider Catherine P. Bessant sold 15,820 shares of Bank of America stock in a transaction on Thursday, August 9th. The shares were sold at an average price of $31.61, for a total transaction of $500,070.20. Following the completion of the transaction, the insider now owns 483,680 shares of the company’s stock, valued at $15,289,124.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.10% of the stock is owned by company insiders.

A number of large investors have recently bought and sold shares of BAC. Global Financial Private Capital LLC acquired a new stake in Bank of America in the first quarter worth $4,533,000. Archford Capital Strategies LLC acquired a new stake in Bank of America in the first quarter worth $186,000. BB&T Securities LLC grew its holdings in Bank of America by 72.9% in the first quarter. BB&T Securities LLC now owns 1,146,499 shares of the financial services provider’s stock worth $34,382,000 after purchasing an additional 483,330 shares during the period. ProShare Advisors LLC grew its holdings in Bank of America by 3.0% in the first quarter. ProShare Advisors LLC now owns 3,070,316 shares of the financial services provider’s stock worth $92,079,000 after purchasing an additional 88,028 shares during the period. Finally, FIL Ltd grew its holdings in shares of Bank of America by 6.3% during the first quarter. FIL Ltd now owns 5,727,243 shares of the financial services provider’s stock valued at $171,760,000 after buying an additional 339,409 shares during the last quarter. Institutional investors and hedge funds own 65.08% of the company’s stock.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

Further Reading: Book Value Per Share – BVPS

Earnings History and Estimates for Bank of America (NYSE:BAC)

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