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Bank of America Corporation (BAC)

NYSE - Nasdaq Real Time Price. Currency in USD
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39.15+0.41 (+1.06%)
At close: 4:00PM EDT
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  • K
    Bought more today. This stock trades on rates, which are way down today (10 year yield at 1.55%). When the 10 year yield gets to 2%, BAC will be at $45-$50.
  • I
    I love when my stocks crush earnings and then they go down. It makes me feel so good. Then you can buy a stock like TESLA whose earnings don’t support the price or SNAP who keep posting losses every year and they continue to go up. Do I even need to mention GME??? This market makes absolutely no sense whatsoever which tells me there is a bubble still looming or the Robinhood traders are taking over and buying based on Reddit trends and not true fundamentals like us old people 🤣
  • E
    Going to buyback $25B worth of stock. According to Yahoo, there are 8.6 billion shares outstanding. If they buy back $25B and do not issue any, the count will fall to 8B. Or...they could send out almost $3 in dividend rather than buy back stock. Which would you prefer?
  • B
    When will BAC raise it's dividend? It's 1.86%! They just had great earnings - it's time to reward shareholders. Buying back stock does nothing for shareholders. If they want cash instead of stock, they can sell anytime they want. 25 billion can pay a LOT of dividend. If BAC doesn't want the diividend increase locked in future periods, let them declare a "special" for 2021
  • W
    Lots of first-time amateurs have infested this message board this week. First, when BAC was going up, they were posting giddy cartoons, and then yesterday when BAC tanked, they were crying for their mommy.

    Hopefully, they will take their losses and spend their days posting on other message boards! GLTA BAC shareholders, especially us long-termers!
  • H
    Bank of America Profit Doubles -- 2nd Update -- 8:39 am ET April 15, 2021

    Bank of America Corp. said Thursday that its profit doubled in the first three months of the year.

    The Charlotte, N.C.-based lender posted earnings of $8.05 billion in the first quarter. That compared with $4.01 billion a year earlier, when banks took big hits to their earnings to begin stockpiling rainy-day reserves at the beginning of the pandemic.

    The bank made 86 cents a share, beating the 66 cents forecast in a FactSet poll of analysts.

    Earnings from the largest banks have reflected heightened optimism about an economic rebound. JPMorgan Chase & Co. and Wells Fargo & Co. said Wednesday they both released money they had socked away last year to cover widespread loan defaults.

    Bank of America said it released $2.7 billion of its reserves, boosting its bottom line. Charge-offs were down from a year earlier.

    Like JPMorgan and Goldman Sachs Group Inc., Bank of America also benefited from a crazy quarter on Wall Street. Higher trading revenue and investment banking fees helped power earnings.

    Bank of America CEO Brian Moynihan has long expressed optimism about the economy, saying consumer spending is picking back up.

    "We believe that progress in the health crisis and the economy point to an accelerating recovery," Mr. Moynihan said in a statement.

    The bank now expects U.S. gross domestic product to return to pre-pandemic levels by the third quarter of this year, Paul Donofrio, chief financial officer, said on a call with reporters. A few months ago, the expectation was that GDP wouldn't return to those levels until 2022. Such forecasts help determine how much the lender sets aside for bad loans.

    But America's second largest bank is still managing through the crisis, which ushered in record low rates. That has eroded the spread between what banks pay to borrow and what they earn from lending. Net interest income totaled $10.2 billion in the first quarter, down 16% from $12.13 billion a year earlier.

    Like other banks, the lender's book of loans continued to shrink, reflecting soft demand from consumers and businesses. Outstanding loans and leases also dropped by 14% to $903.01 billion.

    Noninterest income rose 19% to $12.62 billion, from $10.64 billion a year earlier, helped by fees in its capital-markets businesses.

    Adjusted trading revenue rose 17% to $5.08 billion from $4.34 billion a year earlier. By comparison, trading revenue rose 47% at Goldman and 25% and JPMorgan.

    A boom in mergers and stock offerings boosted investment-banking divisions, particularly those working with special-purpose acquisition companies. Bank of America also benefited, led by equity issuance. Investment banking fees rose 62% to $2.25 billion, from $1.39 billion a year earlier.

    Altogether, the bank's revenue was flat at $22.82 billion, from $22.77 billion a year ago. Still, that beat the $21.9 billion analysts had forecast.

    The bank separately said its board approved a $25 billion share buyback plan. The Federal Reserve has said its restrictions on shareholder returns will expire at the end of June.

    Bank of America shares rose in premarket trading Thursday. Bank stocks have been hot this year, rising more than the broader market after falling sharply when the coronavirus hit the U.S. last year.

    The bank's expenses jumped 15% in the first quarter to $15.52 billion, from $13.48 billion a year ago. Bank of America noted some one-time expenses, including about $300 million from incentive compensation changes and $160 million in severance.

    A boom in mergers and stock offerings boosted banks' investment-banking divisions, particularly those working on special-purpose acquisition companies. Bank of America also benefited, led by equity issuance. Investment banking fees rose 62% to $2.25 billion, from $1.39 billion a year earlier.

    Adjusted trading revenue rose 17% to $5.08 billion from $4.34 billion a year earlier. By comparison, trading revenue rose 47% at Goldman and 25% and JPMorgan.
  • B
    Buybacks bring share count down, and push EPS up. Do them long enough and share price can exceed JPM. If you don't want that kind of return and want dividends to pay taxes on every quarter, sell and move on. There are lots of new long term investors that want your shares.
  • H

    We raise our target by $8 to $40 using forward P/E of 13.1x our 2021 earnings estimate and wider risk premium than 5-year historic average at 12.0x, given our view BAC's operating performance will benefit from a strong U.S. economy for the rest of 2021. We raise our 2021 EPS estimate by $0.80 to $3.05 and 2022's by $0.45 to $3.20. BAC post Q1 2021 EPS of $0.86, a $0.21 earnings beat to consensus with wider margins but flat revenues Y/Y.

    In Q1 2021, net interest income (NII) declined 16%, with the net interest yield at 1.68%, down 65 bps Y/Y, alongside lower rates and lower loan activity. BAC states a 100 bps increase from a rising yield curve and modest loan growth would equate to a NII benefit of $1.0B by Q4 2021.

    Non-interest income increased 18.7% with higher card income (+12.8%), deposit and lending fees (-8.1%), asset management fees (+11.9%), investment banking fees (+61.8%), and market making or trading (-25.7%). In Q2 2021, BAC expects reserve levels to move lower with lower credit risk exposure.
  • F
    Frontier Customer
    Been a steady performer for me. Bought it back in '08 for $7. No complaints here.
  • G
    Is it possible for banks to lose business, clients and income/profits as digital currencies become widespread? After all 50% of bank income is from fees but with digital currencies you don't need a bank account to hold your money and you don't need a bank for transfers. Digital money can be hold in digital wallets and money can be transferred from smartphone to smartphone.
  • H
    Buy the rumor; sell the news. Beyond that, this is still a $50 stock.
  • B
    Bruin Fan
    No Great GOP Recession this time !
  • B
    See you guys at $42 tomorrow in pre-market! For those holding the 4/16 $40 calls, congrats! Victory is at hand my brothers and sisters!!!
  • M
    I put an open order to buy at 37.70, think it will go down that far. Most repeated phrase on earnings was “low lending growths.” If a bank does not lend, how is it supposed to make money. I always keep track of the Bollinger Band. Last earnings BAC went down to the 50 day moving average which did a golden cross at the beginning of the year. My personal opinion is BAC will be trading sideways, in a pattern. Remember summer is coming and people like to vacation. PT at UBS 35 neutral, PT at MS 38 underweight. People talking 45 for BAC have been smoking too much meth.
  • B
    Robert? Do you not know how to look at a P/E and see what bank is under priced vs over priced?
    You need to learn the very basics son. WFC is valued at HALF of BAC.
    BAC has a higher PE than any bank, which means it's OUTPERFORMED them all.
  • r
    There's a VERY good chance BAC will beat estimates of $.63. I think $.72 will be the number depending on the reserve release. The question is "what" is fair value of BAC for now $41? $42? Either way I believe BAC will be higher by the end of the week. PM $39.86, I view that as an opportunity to buy today and sell end of the week. Hopefully for a gain!
  • W
    The giddy newcomers are busy posting cartoons, while real BAC investors are rejoicing about BAC's recent performance and new highs! Of course, I also invested in stocks from 1993-2000 and from 2009-2017, so I am used to my stocks going up! No cartoon posting for me! GLTA!
  • B
    This is normal reaction for BAC price on earnings date. It's happened before. Everyone looks for anything negative, and will find something to drive price down for a better entry point. Price is already way off it's low of the morning. I'm in from 2012 at $7.15 and holding. Gotten all mine back in dividends over the last 9 years.
  • S
    Well, JPM reported great earnings and it was down. I hope the same doesn’t happen to BAC tomorrow morning. Have high hopes for both In the long term!
  • R
    Is this all that BAC can do with all the best results. WFC did better yesterday. Go baby BAC of the big bank stocks. Always 1st in losses and last in gains.