Bank of America (NYSE:BAC) Shares Down 1.5% – Here’s What Happened

Bank of America Corporation (NYSE:BAC)’s share price fell 1.5% on Monday . The stock traded as low as $55.27 and last traded at $55.30. 20,849,348 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 39,974,984 shares. The stock had previously closed at $56.17.

Key Stores Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: CEO Brian Moynihan said he expects tariff pressures to “de‑escalate” in 2026, signaling reduced macro and trade risk that could support loan growth, corporate activity and overall economic visibility for banks. This is broadly bullish for BAC’s lending and trading outlook. Moynihan sees tariffs de‑escalating — Fortune
• Positive Sentiment: Sector momentum: a year in which the largest U.S. banks rallied strongly has left the group with meaningful earnings tailwinds and investor interest—an environment that tends to lift BAC alongside peers. Big Bank Stocks Come Roaring Back in 2025 — Video
• Positive Sentiment: Analyst/upgrades flow: recent upgrades and positive mentions from smaller coverage outlets (Wall Street Zen / American Banking News) provide incremental support for sentiment and could attract short‑term buyers. Wall Street Zen upgrade — AmericanBankingNews
• Neutral Sentiment: Bank of America Securities’ broader research activity (e.g., coverage on América Móvil) highlights that BofA remains active in institutional research and trading, a business line that supports fee revenue but has limited immediate impact on BAC’s share moves. BofA research on América Móvil — InsiderMonkey
• Neutral Sentiment: Macro/market rotation pieces (battery supply chain, gold, etc.) reflect 2025 sector rotations—useful context for portfolio positioning but not directly material to BAC’s fundamentals today. Battery ETF outperformance — 247WallSt
• Negative Sentiment: Valuation caution: some analysts and commentaries warn BAC’s stock is largely priced for expected execution, which raises the risk of pullbacks if growth or margins disappoint — a likely reason for today’s profit‑taking after large 2025 gains. Valuation caution — Seeking Alpha

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on BAC shares. Wall Street Zen raised shares of Bank of America from a “sell” rating to a “hold” rating in a research note on Sunday. Keefe, Bruyette & Woods upped their target price on Bank of America from $58.00 to $64.00 and gave the stock an “outperform” rating in a research report on Wednesday, December 17th. Seaport Global Securities raised their price target on Bank of America from $59.00 to $66.00 and gave the stock a “buy” rating in a research note on Monday, October 6th. Morgan Stanley lowered their price target on Bank of America from $70.00 to $68.00 and set an “overweight” rating for the company in a research note on Friday, December 12th. Finally, Phillip Securities raised their price objective on shares of Bank of America from $50.00 to $56.00 in a research report on Tuesday, October 21st. Twenty-three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $58.59.

Bank of America Price Performance

The stock has a 50 day moving average of $53.45 and a two-hundred day moving average of $50.30. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79. The firm has a market capitalization of $403.83 billion, a P/E ratio of 15.07 and a beta of 1.30.

Bank of America (NYSE:BAC) last posted its earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.13. The business had revenue of $5.35 billion for the quarter, compared to analyst estimates of $27.05 billion. Bank of America had a net margin of 15.70% and a return on equity of 10.76%. Bank of America’s revenue was up 10.8% compared to the same quarter last year. During the same period last year, the business posted $0.81 EPS. Sell-side analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, December 26th. Investors of record on Friday, December 5th were paid a dividend of $0.28 per share. The ex-dividend date was Friday, December 5th. This represents a $1.12 annualized dividend and a yield of 2.0%. Bank of America’s dividend payout ratio is presently 30.52%.

Hedge Funds Weigh In On Bank of America

Several large investors have recently bought and sold shares of BAC. Norges Bank bought a new position in shares of Bank of America during the 2nd quarter worth about $5,091,641,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Bank of America by 640.5% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 46,516,728 shares of the financial services provider’s stock worth $2,399,798,000 after buying an additional 40,235,201 shares in the last quarter. Capital World Investors increased its stake in Bank of America by 11.0% during the third quarter. Capital World Investors now owns 144,371,118 shares of the financial services provider’s stock valued at $7,448,816,000 after acquiring an additional 14,275,810 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Bank of America by 124.8% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 17,619,837 shares of the financial services provider’s stock worth $833,771,000 after acquiring an additional 9,782,208 shares during the period. Finally, Danske Bank A S acquired a new stake in shares of Bank of America during the 3rd quarter worth approximately $224,863,000. 70.71% of the stock is currently owned by institutional investors and hedge funds.

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.