Bank of America shares extend gains to rise 2.1% in premarket

Bank of America shares extend gains to rise 2.1% in premarket

Bank of America Corporation (NYSE: BAC) saw its shares extend gains, rising by 2.1% in premarket trading on Tuesday, July 2, 2025. The stock closed at $46.09, following a $0.98 increase from its previous closing price of $45.11. This upward movement comes after the company reported its quarterly earnings results on April 15, 2025, beating analysts' expectations by $0.10 per share [1].

The financial services giant reported earnings per share (EPS) of $0.90, exceeding the consensus estimate of $0.80. Revenue for the quarter amounted to $27.37 billion, surpassing analyst estimates by $0.54 billion. The company's return on equity (ROE) stood at 10.25%, and its net margin was 14.56% [1].

Additionally, Bank of America announced a quarterly dividend of $0.26 per share, paid on June 27, 2025, representing a $1.04 annualized dividend and a dividend yield of 2.26% [1]. The company's dividend payout ratio is 30.95%.

Analysts have mixed opinions about the company's prospects. Several research firms have recently issued reports on BAC. Truist Financial, for instance, increased its price objective on shares of Bank of America from $51.00 to $53.00 and gave the company a "buy" rating. Citigroup, on the other hand, raised its price target from $50.00 to $54.00 and also gave the company a "buy" rating [1]. The consensus rating among analysts is "Moderate Buy" with an average target price of $48.89 [1].

Institutional investors hold 70.71% of the company's stock, while other hedge funds have made recent changes to their positions. Massachusetts Financial Services Co. MA, for example, sold 513,172 shares of BAC in the first quarter, reducing its holdings by 3.5% [1]. Meanwhile, Graney & King LLC, Vega Investment Solutions, Marshall & Sterling Wealth Advisors Inc., Spurstone Advisory Services LLC, and Glass Jacobson Investment Advisors llc made new investments in BAC [1].

Bank of America will be announcing its earnings results for the second quarter of 2025 on Wednesday, July 3, 2025, before the market opens. Analysts are expecting the company's revenue to grow 4.5% year on year to $26.52 billion, with adjusted earnings expected to come in at $0.86 per share [2].

The company's stock has been trading within a 52-week range of $33.07 to $49.31, with a current market capitalization of $347.14 billion. The stock has a price-to-earnings (P/E) ratio of 13.72, a PEG ratio of 1.27, and a beta of 1.30 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-massachusetts-financial-services-co-ma-sells-513172-shares-of-bank-of-america-corporation-nysebac-2025-07-15/
[2] https://www.tradingview.com/news/stockstory:a683dd5f7094b:0-earnings-to-watch-bank-of-america-bac-reports-q2-results-tomorrow/