Deutsche Bank has recently raised Bank of America Corp (BAC) stock to Buy rating, as announced on September 3, 2024, according to Finviz. Earlier, on July 9, 2024, Piper Sandler had raised the stock from a Underweight to Neutral, setting a price target of $42. for BAC stock. Seaport Research Partners also raised Buy rating with a price target of $48. Additionally, Keefe Bruyette raised Outperform rating on June 14, 2024, with a target price of $46. Wolfe Research analysts, in their report published on April 19, 2024, also raised Outperform rating and set a price target of $42 for Bank of America Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Bank of America Corp (BAC) Stock Trading Recap
On Friday, Bank of America Corp (BAC) stock saw a decline, ending the day at $38.76 which represents a decrease of $-1.38 or -3.44% from the prior close of $40.14. The stock opened at $39.77 and touched a low of $38.56 during the day, reaching a high of $39.88. The volume of shares traded was 46.87 million exceeding the average volume of 39.50 million.
BAC Stock Performance and Moving Averages
In recent trading, Bank of America Corp (BAC) stock price has shown some volatility, fluctuating -3.51% over the last five trades and 3.91% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 8.78%, and it has plunged by -2.37% in the previous three months. Currently, BAC is trading at -1.65%, -3.70%, and 5.91% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, BAC, a Financial sector stock, is trading -12.78% below its 52-week high but remains 55.29% above its 52-week low. The Average True Range (ATR) (14 days) of 0.88 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Bank of America Corp’s Profitability and Valuation Ratios
Bank of America Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 14.19% and a profit margin of 12.07%, with a gross margin of 8.78%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Bank of America Corp’s market capitalization stands at $300.76 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 13.63, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.51. Additionally, the Price-to-Sales Ratio is 1.59, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.13, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.17% of Bank of America Corp (BAC)’s shares, while financial institutions hold 72.12%.
Notable insider trades include BERKSHIRE HATHAWAY INC, 10% Owner at Bank of America Corp (BAC), who sold 8031639 shares on Sep 03 ’24, at $40.66 each, totaling $326.56 million. On Sep 04 ’24, BERKSHIRE HATHAWAY INC, 10% Owner, sold 5683651 shares for $40.61 each, amounting to $230.81 million. Additionally, on Sep 05 ’24, BERKSHIRE HATHAWAY INC sold 5031014 shares at $40.28 each, generating $202.67 million.
