UBS has recently raised Bank of America Corp (BAC) stock to Buy rating, as announced on January 7, 2025, according to Finviz. Earlier, on January 7, 2025, HSBC Securities had raised the stock from a Hold to Buy, setting a price target of $50. Morgan Stanley also reduced rating with a price target of $55. Additionally, Citigroup raised Buy rating on November 8, 2024, with a target price of $54. Deutsche Bank analysts, in their report published on September 3, 2024, also raised Buy rating 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.
Bank of America Corp (BAC) Stock Trading Recap
On Tuesday, Bank of America Corp (BAC) stock saw a modest uptick, ending the day at $45.78 which represents a slight increase of $0.72 or 1.60% from the prior close of $45.06. The stock opened at $45.53 and touched a low of $45.23 during the day, reaching a high of $45.92. The volume of shares traded was 35.37 million exceeding the average volume of 34.19 million.
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BAC Stock Performance and Moving Averages
In recent trading, Bank of America Corp (BAC) stock price has shown some volatility, fluctuating 0.84% over the last five trades and -0.65% 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 9.29%, and it has gained 9.13% in the previous three months. Currently, BAC is trading at 2.30%, 0.90%, and 11.72% 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 -4.78% below its 52-week high but remains 46.40% above its 52-week low. The Average True Range (ATR) (14 days) of 0.89 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 financial health. The company currently boasts an operating margin of 13.57% and a profit margin of 11.22%, with a gross margin of 9.29%. 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 $351.26 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 16.64, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 12.25. Additionally, the Price-to-Sales Ratio is 1.8, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.29, 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 73.01%.
Notable insider trades include BANK OF AMERICA CORP /DE/, 10% Owner at Bank of America Corp (BAC), who sold 20249064 shares on Nov 22 ’24, at $99.92 each, totaling $2023.29 million. On Oct 15 ’24, BERKSHIRE HATHAWAY INC, 10% Owner, sold 8694538 shares for $42.55 each, amounting to $369.93 million. Additionally, on Oct 09 ’24, BERKSHIRE HATHAWAY INC sold 4002225 shares at $40.14 each, generating $160.66 million.
