Bank of America Looks To End A Bumpy 2014 On A High Note

Bank of America BAC stock has done well in the past six months, surging about 13.5 percent. However, unlike most big names in the financial sector, Bank of America hasn’t made any new 52-week highs since March.
A good start to the year
Everything was looking rosy for Bank of America in the early months of 2014. The bank (conditionally) passed the CCAR capital plan stress test, and as a result boosted its quarterly dividend from one cent to five cents. In addition, the company announced a $5 billion share buyback program.
This good news propelled the stock to its highest level since 2010 when it peaked at $17.91 in mid-March of this year. However, the euphoria wouldn’t last.
The bad news
In April, with shares of Bank of America already down from the March peak, the company dropped a bombshell by disclosing an “accounting error” that would cost shareholders $4 billion dollars. Needless to say, the market reaction wasn’t pretty.
Despite the fact that the $4 billion loss didn’t have any major effect on Bank of America’s long-term earnings, confidence in the company was shaken. One of the bank’s biggest problems since the financial crisis has been public perception and lack of trust by the public, and a $4 billion oversight didn’t help the cause. When the dust settled after the selloff, Bank of America shareholders found the stock as low at $14.23 in late May, down more than 20 percent from its highs.
Recovery roadblock?
Since then, the stock has come clawing back, but while many other names in the financial sector have been making new 52-week highs virtually all year long, Bank of America has just recently found itself back near its May highs.

Disclosure: Wayne Duggan owns shares of Bank of America.