Bank of America Corporation (BAC) Could Go Either Way

Bank of America Corporation (BAC) will probably climb 22.94 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $37-month high price target. This represents a whopping 42.14 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $32, which represents a return potential of 22.94 percent when compared to the closing price of the stock of $26.03 on Friday, January 11. The lowest price target for the stock is $27 — slightly more than 3.73 percent from BAC’s current share price.

The stock is currently hovering around the first support level of $25.65. Below this, the next support is placed in the zone of $25.26. Till the time, the BAC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.09 on daily chart, which may remain a cause for concern. If the price breaks below $25.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $26.23 mark may result into a pull-back move towards $26.42 level.

On 11th of January, Bank of America Corporation (NYSE:BAC) shares ended higher after a volatile session. The shares accumulated 0.3 points or 1.17 percent at $26.03 with a light trade volume of 63.368 million shares. After opening the session at $25.53, the shares went as high as $26.04 and as low as $25.46, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $261 billion and now has 10.03 billion shares outstanding. Bank of America Corporation (BAC) stock has gained 5.9 percent of market value in 21 trading days.

BAC stock has a trailing 3-year beta of 1.41, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.3 a share in the trailing twelve months. The stock’s value has surged 5.64 percent year to date (YTD) against a decline of -14.8 percent in 12 month’s time. The company’s shares still trade -21.24 percent away from its 1-year high of $33.05 and 14.87 percent up from 52-week low of $22.66. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Bank of America Corporation (BAC) are trading at a P/E ratio of 12.07 times earnings reported for the past 12 months. The industry BAC operates in has an average P/E of 18.6. Its P/E ratio went as low as 12.84X and as high as 42.31 over the 5-year span. Further, it is sporting a 4.08 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for Bank of America Corporation and operating margin sits at 67.5 percent. Along with this, the net profit margin is 34.2 percent.

Let’s take a look at some insider activity at Bank of America Corporation (NYSE:BAC) and see the pattern. The earliest insider trade took place on 08/09/2018. Bessant Catherine P parted with a total of 15.82 thousand shares of company at average share price of $31.61. The total for the sales was set at $500.07 thousand. After this transaction, the Chief Ops & Tech Officer account balance stood at 609.31 thousand shares. The stock lost -17.65 percent since that insider sale. On 08/10/2017, Bramble Frank P, Director, sold 86.76 thousand shares at a price per share of $24.16. This removed 2.1 million shares from the insider’s fortune and the stock saw a 7.74 percent rally in value since the news became public. This transaction left 99.92 thousand shares in the Director account.

On 04/27/2017, Director Woods Thomas D performed a purchase transaction worth $595.25 thousand. This purchase at $23.81 each has added 25 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 9.32 percent increase since the transaction was reported. The insider now is left with 62.06 thousand shares remaining in the account. White Michael D, who performs the Director job, bought 25 thousand shares for $503.5 thousand. The acquisition occurred on 11/21/2016 was priced at $20.14 per share. The share price soared 29.25 percent since the reporting date. White Michael D now left with a stake of 85.65 thousand BAC stock worth $2.23 million after the insider buying.