Bank of America (NYSE:BAC) Shares Down 1.2% – Time to Sell?

Shares of Bank of America Corporation (NYSE:BAC) dropped 1.2% during trading on Monday . The stock traded as low as $54.73 and last traded at $55.1620. Approximately 45,690,877 shares traded hands during trading, an increase of 28% from the average daily volume of 35,777,918 shares. The stock had previously closed at $55.85.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Large drop in short interest — Short interest fell ~21.2% to 90.6M shares as of Dec. 31 (about 1.2% of float), lowering the short-interest ratio to ~2.7 days. Fewer shorts can reduce downward pressure and is a bullish technical signal for BAC.
• Positive Sentiment: Bank of America research flags big AI-driven bond opportunity — BofA says AI-related bond issuance could reach ~$300B/year, suggesting upside for its institutional sales & trading and investment-banking fees. AI Bond Sales Could Hit $300 Billion a Year, Bank of America Says
• Positive Sentiment: BofA views AI as a multi-year valuation driver — Firm commentary on AI infrastructure and frontier models underscores BofA’s role advising clients and positions its research franchise as a commercial advantage. 10 AI Stocks Investors Are Watching Closely
• Positive Sentiment: Bullish public commentary — Jim Cramer called BAC’s valuation an “insult” to its CEO, signaling retail/TV-driven positivity that can lift short-term flows. Bank of America (BAC)’s Multiple is An Insult to Its CEO, Says Jim Cramer
• Neutral Sentiment: Analyst previews and forecasts ahead of Q4 — Wall Street previews show expectations for solid trading, stable net interest income and improved IB fees; a handful of forecast tweaks are circulating ahead of earnings, which will be the next catalyst. Bank of America Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts
• Neutral Sentiment: Sector-wide constructive backdrop — Analysts note banks enter earnings season on firmer footing (loan growth, capital markets momentum), which supports the group but leaves BAC exposed to macro/regulatory shocks. Can Bank Stocks Sustain Recent Momentum?
• Negative Sentiment: Policy risk — President Trump proposed a 10% cap on credit-card interest rates, triggering sector sell-offs as investors price in revenue and margin risk for card portfolios and potential tighter lending economics. Big Bank Stocks Tumbled After Trump Said This
• Negative Sentiment: Banks push back on the cap — Financial institutions, including large U.S. banks, warned the proposed cap would restrict access to credit for households and small businesses, but the political risk alone is pressuring BAC and peers. Banks warn consumers will be hurt by Trump’s 10% cap on credit card interest rates

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on BAC shares. Barclays boosted their target price on shares of Bank of America from $59.00 to $71.00 and gave the stock an “overweight” rating in a report on Monday, January 5th. UBS Group boosted their price objective on Bank of America from $55.00 to $57.00 and gave the stock a “buy” rating in a research note on Tuesday, October 7th. The Goldman Sachs Group raised their price objective on Bank of America from $58.00 to $64.00 and gave the company a “buy” rating in a research note on Tuesday, January 6th. Erste Group Bank upgraded Bank of America from a “hold” rating to a “buy” rating in a report on Friday, October 3rd. Finally, JPMorgan Chase & Co. increased their price target on Bank of America from $58.00 to $61.00 and gave the company an “overweight” rating in a report on Tuesday, January 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Bank of America currently has a consensus rating of “Moderate Buy” and a consensus target price of $59.82.

Bank of America Stock Performance

The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.12. The business has a 50 day moving average price of $54.17 and a 200 day moving average price of $51.09. The stock has a market cap of $402.82 billion, a P/E ratio of 15.03 and a beta of 1.29.

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

Bank of America Announces Dividend

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

Institutional Investors Weigh In On Bank of America

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sentinel Pension Advisors LLC grew its stake in Bank of America by 38.1% in the 4th quarter. Sentinel Pension Advisors LLC now owns 7,248 shares of the financial services provider’s stock worth $399,000 after acquiring an additional 2,000 shares in the last quarter. World Equity Group Inc. boosted its holdings in shares of Bank of America by 0.6% in the fourth quarter. World Equity Group Inc. now owns 73,648 shares of the financial services provider’s stock valued at $4,051,000 after purchasing an additional 460 shares during the period. Stokes Capital Advisors LLC purchased a new position in Bank of America during the 4th quarter worth $284,000. CVA Family Office LLC raised its position in Bank of America by 24.0% during the 4th quarter. CVA Family Office LLC now owns 11,393 shares of the financial services provider’s stock valued at $627,000 after purchasing an additional 2,206 shares in the last quarter. Finally, GenWealth Group Inc. purchased a new stake in shares of Bank of America in the 4th quarter worth $214,000. Institutional investors own 70.71% of the company’s stock.

Bank of America Company Profile

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.