Shares of Bank of America Corporation (NYSE:BAC) recorded 1.17% gain during trading session on January 11th, 2019. The script traded as low as $25.46 and last traded at $26.03. 63.37 million shares changed exchanged hands during trading, an increase of 17.38% from the 30-day average session volume of 76.70M shares. The firm had previously closed at $25.73. The company has $10.03B outstanding shares, a price-to-earnings ratio of 11.32, price-to-earnings-growth ratio of 4.08and a beta of 1.41. The company has a RSI of 56.09, ATR of 0.80 and a volatility of 2.04% this week. BAC has a 52 week low price of $22.66 and a 52 week high price of $33.05.
Investors have identified the tech company Bank of America Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 261.12B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Bank of America Corporation (BAC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BAC, the company has in raw cash 248.24 billion on their books with 0 currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 9.68 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
BAC were able to record 53.44 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 184.86 billion. In cash movements, the company had a total of 0 as operating cash flow.
Potential earnings growth for Bank of America Corporation (BAC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Bank of America Corporation recorded a total of 16.97 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.14% coming in sequential stages and their sales for the third quarter increasing by 0.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 5.1 billion trying to sell their products during the last quarter, with the result yielding a gross income of 11.87 billion. This allows shareholders to hold on to 10.03B with the revenue now reading 670 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.65 cents a share).
Is the stock of BAC attractive?
Having a look at the company’s valuation, the company is expected to record 2.78 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BAC sounds very interesting.
In related news, 10% Owner BANK OF AMERICA CORP /DE/ bought 5 shares of the company’s stock in a transaction that recorded on December 29th, 2019. The purchase was performed at an average price of 14.70, for a total value of 74. As the purchase deal closes, the 10% Owner BANK OF AMERICA CORP /DE/ now bought 3 shares of the company’s stock, valued at 44. Also, 10% Owner BANK OF AMERICA CORP /DE/ bought 165 shares of the company’s stock in a deal that was recorded on September 14th, 2019. The shares were bought at an average cost of 15.29 per share, with a total market value of 165. Following this completion of disposal, the 10% Owner now holds 1,300 shares of the company’s stock, valued at 16,231. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.08%.
12 out of 31 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Bank of America Corporation stock. 0 analysts has assigned a Sell rating on the BAC stock. The 12-month mean consensus price target for the company’s shares has been set at $32.00.