Bank of America (NYSE:BAC) Stock Falls 2.2% After Analyst Downgrade

Bank of America Corporation (NYSE:BAC) shares dropped 2.2% during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $62.00 to $59.50. JPMorgan Chase & Co. currently has an overweight rating on the stock. Bank of America traded as low as $49.78 and last traded at $50.03. 42,000,245 shares were traded during mid-day trading, an increase of 12% from the average session volume of 37,614,684 shares. The stock had previously closed at $51.14.

Several other brokerages have also issued reports on BAC. Robert W. Baird raised Bank of America from a “neutral” rating to an “outperform” rating and set a $62.00 price target for the company in a research note on Thursday, October 15th. Jefferies Financial Group reduced their price objective on Bank of America from $75.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, September 24th. TD Cowen decreased their price objective on Bank of America from $60.00 to $56.00 and set a “hold” rating on the stock in a report on Thursday, October 15th. Royal Bank Of Canada decreased their price target on shares of Bank of America from $65.00 to $60.00 and set an “outperform” rating on the stock in a research note on Thursday, October 15th. Finally, Truist Financial decreased their price target on shares of Bank of America from $62.00 to $58.00 and set a “buy” rating on the stock in a research note on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Bank of America has an average rating of “Moderate Buy” and a consensus price target of $62.70.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America’s market commentary remains constructive on several growth initiatives. Analysts point to branch expansion and artificial-intelligence investments as potential drivers of deposit growth, stronger customer relationships and improved efficiency. Can BAC’s Branch Expansion & AI Push Drive Long-Term Growth?
• Positive Sentiment: Bank of America expanded its physical banking presence by opening new financial centers in Wisconsin, supporting its long-term strategy to deepen retail relationships and gather deposits. Bank of America expands in-person reach with new financial centers in Wisconsin
• Neutral Sentiment: Bank of America’s investment strategists highlighted technology-company bonds as potentially more attractive than tech stocks, reflecting a broader shift toward credit and quality assets. The view may benefit the bank’s investment-banking and fixed-income businesses, but it does not directly change BAC’s earnings outlook. Tech Bonds Are ‘Diamonds in the Rough’: Bank of America’s Hartnett Says
• Negative Sentiment: Senator Elizabeth Warren urged the Justice Department to investigate Bank of America and potentially its executives over alleged anti-money-laundering and sanctions violations. The pressure follows a reported $1.21 billion penalty and raises concerns about additional fines, remediation costs and reputational damage. Warren urges DOJ criminal probe of Bank of America over anti-money-laundering violations
• Negative Sentiment: Multiple law firms promoted a securities-fraud class action covering investors who purchased BAC shares from August 1, 2025, through October 13, 2026. The repeated notices and December 15, 2026 lead-plaintiff deadline reinforce near-term litigation overhang, although the allegations have not been adjudicated. ROSEN securities class action notice
• Negative Sentiment: Bank of America was also sued over its use of mandatory arbitration in employee disputes, adding another legal and compliance concern for investors. Bank of America sued over mandatory arbitration for employee disputes

Institutional Investors Weigh In On Bank of America

Institutional investors have recently bought and sold shares of the stock. Bamco Inc. NY raised its stake in Bank of America by 45.4% during the second quarter. Bamco Inc. NY now owns 40,994 shares of the financial services provider’s stock valued at $2,336,000 after buying an additional 12,794 shares during the last quarter. E Fund Management Co. Ltd. bought a new stake in Bank of America in the second quarter worth $4,089,000. Bernicke Wealth Management Ltd. bought a new stake in Bank of America in the second quarter worth $2,132,000. Aspiriant LLC grew its stake in shares of Bank of America by 34.3% in the third quarter. Aspiriant LLC now owns 48,877 shares of the financial services provider’s stock worth $2,660,000 after acquiring an additional 12,479 shares during the last quarter. Finally, Lakeshore Capital Group Inc. grew its stake in shares of Bank of America by 111.8% in the third quarter. Lakeshore Capital Group Inc. now owns 33,642 shares of the financial services provider’s stock worth $1,831,000 after acquiring an additional 17,759 shares during the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Stock Performance

The company has a debt-to-equity ratio of 1.17, a current ratio of 0.82 and a quick ratio of 0.82. The business has a 50 day moving average price of $56.44 and a 200 day moving average price of $54.96. The stock has a market capitalization of $349.85 billion, a PE ratio of 11.88, a PEG ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by ($0.02). The company had revenue of $29.96 billion during the quarter, compared to analysts’ expectations of $30.58 billion. Bank of America had a return on equity of 12.15% and a net margin of 16.80%. Bank of America’s revenue for the quarter was up 3.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.06 EPS. As a group, equities research analysts expect that Bank of America Corporation will post 4.52 earnings per share for the current year.

Bank of America Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Shareholders of record on Friday, December 4th will be paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Friday, December 4th. Bank of America’s dividend payout ratio (DPR) is currently 30.40%.

About Bank of America

Bank of America Corporation (NYSE: BAC) is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company’s consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.