why Bank of America Corporation [BAC] is a Good Choice for Investors After New Price Target of $30.38

Bank of America Corporation [NYSE: BAC] slipped around -0.53 points on Tuesday, while shares priced at $29.21 at the close of the session, down -1.78%. The company report on December 18, 2020 that Bank of America Announces Full Redemption of Depositary Shares Representing Interests in Its 6.200% Non-Cumulative Preferred Stock, Series CC.

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Bank of America Corporation announced that it will redeem all outstanding shares of its 6.200% Non-Cumulative Preferred Stock, Series CC (the “Series CC Preferred Stock”), and the corresponding depositary shares representing fractional interests in the Series CC Preferred Stock (the “Series CC Depositary Shares”), on January 29, 2021.

All 44,000,000 Series CC Depositary Shares (NYSE: BAC PrC) (CUSIP No. 060505286), each representing a 1/1,000th interest in one share of the Series CC Preferred Stock, will be redeemed on the dividend payment date on January 29, 2021, simultaneously with the redemption of the Series CC Preferred Stock, at a redemption price of $25 per depositary share. Declared dividends of $0.3875 per depositary share on the outstanding Series CC Depositary Shares for the full current quarterly dividend period will be paid separately on January 29, 2021 to holders of record on January 1, 2021, in the customary manner. Accordingly, the redemption price of $25 per depositary share does not include any accrued and unpaid dividends, and dividends on the redeemed depositary shares will cease to accrue on the redemption date.

Bank of America Corporation stock is now -17.06% down from its year-to-date (YTD) trading value. BAC Stock saw the intraday high of $29.78 and lowest of $29.17 per share. The company’s 52-week high price is 35.72, which means current price is +62.73% above from all time high which was touched on 01/14/20.

Compared to the average trading volume of 58.59M shares, BAC reached a trading volume of 39023415 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Bank of America Corporation [BAC]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BAC shares is $30.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BAC stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Bank of America Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on November 30, 2020. While these analysts kept the previous recommendation, Deutsche Bank raised their target price from $27 to $29. The new note on the price target was released on September 03, 2020, representing the official price target for Bank of America Corporation stock. Previously, the target price had yet another drop from $27 to $25, while DA Davidson kept a Neutral rating on BAC stock.

The Average True Range (ATR) for Bank of America Corporation is set at 0.66, with the Price to Sales ratio for BAC stock in the period of the last 12 months amounting to 4.45. The Price to Book ratio for the last quarter was 1.04, with the Price to Cash per share for the same quarter was set at 107.21. Price to Free Cash Flow for BAC in the course of the last twelve months was 7.08.

How has BAC stock performed recently?

Bank of America Corporation [BAC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.99. With this latest performance, BAC shares gained by 8.95% in over the last four-week period, additionally plugging by 22.68% over the last 6 months – not to mention a drop of -16.95% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BAC stock in for the last two-week period is set at 59.09, with the RSI for the last a single of trading hit 58.08, and the three-weeks RSI is set at 59.17 for Bank of America Corporation [BAC]. The present Moving Average for the last 50 days of trading for this stock 26.73, while it was recorded at 29.03 for the last single week of trading, and 24.68 for the last 200 days.

Bank of America Corporation [BAC]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Bank of America Corporation [BAC] shares currently have an operating margin of +29.38. Bank of America Corporation’s Net Margin is presently recorded at +24.09.

Return on Total Capital for BAC is now 4.76, given the latest momentum, and Return on Invested Capital for the company is 5.80. Return on Equity for this stock inclined to 10.35, with Return on Assets sitting at 1.14. When it comes to the capital structure of this company, Bank of America Corporation [BAC] has a Total Debt to Total Equity ratio set at 166.26. Additionally, BAC Total Debt to Total Capital is recorded at 62.44, with Total Debt to Total Assets ending up at 18.01. Long-Term Debt to Equity for the company is recorded at 93.13, with the Long-Term Debt to Total Capital now at 31.89.

Reflecting on the efficiency of the workforce at the company, Bank of America Corporation [BAC] managed to generate an average of $131,875 per employee.

Earnings analysis for Bank of America Corporation [BAC]

With the latest financial reports released by the company, Bank of America Corporation posted 0.74/share EPS, while the average EPS was predicted by analysts to be reported at 0.68/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 8.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BAC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Bank of America Corporation go to 0.19%.

Insider trade positions for Bank of America Corporation [BAC]

There are presently around $175,351 million, or 71.20% of BAC stock, in the hands of institutional investors. The top three institutional holders of BAC stocks are: BERKSHIRE HATHAWAY INC with ownership of 1,010,100,606, which is approximately 9.199% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 613,530,808 shares of the stock with an approximate value of $17.92 billion in BAC stocks shares; and BLACKROCK INC., currently with $14.89 billion in BAC stock with ownership of nearly -3.757% of the company’s market capitalization.

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Positions in Bank of America Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 956 institutional holders increased their position in Bank of America Corporation [NYSE:BAC] by around 315,495,223 shares. Additionally, 1,052 investors decreased positions by around 348,215,914 shares, while 231 investors held positions by with 5,339,416,008 shares. The mentioned changes placed institutional holdings at 6,003,127,145 shares, according to the latest SEC report filing. BAC stock had 111 new institutional investments in for a total of 28,487,165 shares, while 138 institutional investors sold positions of 28,885,090 shares during the same period.

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