Bank of America Stock Analysis
Bank of America stock is still in the final leg of intermediate degree consolidation; primary theme still bullish
Nearly all the banks in the industry are in limelight ahead of third quarter earnings release for fiscal year 2015; mainly Bank of America Corp. has been the centerpiece. The stock has got substantial coverage by analysts on the heels of bilging events that occurs last month.
Since the beginning of second quarter, Bank of America stock was following an upward trend and traded mostly in green. Especially so the stock surpassed its all-time high soon followed by the quarterly earnings release. Seeking the investors’ attention the stock stood nearer to its 52 week high for some time, analysts believed that this was a better sign for the company’s future. But with increasing uncertainty around the economy of China and worries of flagging global economy, markets witnessed substantial sell off by August end.
Together with the market volatility and decision of Federal Reserve’s to keep the interest rate unchanged, stocks of banking sector took a hit. Separately from the command drivers, BofA had two main events in September: resubmission to Federal Reserve of capital plan and shareholders vote.
The analysts at Bidness after performing technical analysis of bank believe that the share is still stuck in a middle degree consolidation where the stock is probably enabling in the ultimate correction leg.
Moreover, the analysts expect a robust meeting of support to the stock in the range of $15.18 and $12.73, dismissing the curative sequence.
BofA held a meeting to decide Brian Moynihan’s dual role as Chairman and CEO with the investors consent, however the result came out in Mr. Moynihan’s favor and now he will continue to hold both positions. The company was not successful to convince the FR this year and was told to submit the capital plan again. By September end, the bank was supposed to submits its future looking statement having made changes to the mistakes that were highlighted.
Bank of America stock news shows that before the release of quarterly earnings, Bloomberg analysts expects it to report $20.8 billion in revenue along with earnings of 33 cents per share. Since the interest rate decision came out, analysts have reviewed their estimations.
Around 28 out of 40 analysts having coverage to the stock suggest a Buy, nine gave it a Hold while only three gave it a Sell. The twelve month target stock price stands at $19.21.
Bank of America stock was down 1.08% to $15.59 during pre-market trading on Monday.
