What's Going On With Bank Of America Stock?

Bank Of America Corp BAC shares are trading lower Wednesday, adding to losses of more than 6% over the last week. Here's a look at what's going on. 

What To Know: Bank of America shares have come under pressure in recent trading sessions alongside the broader market as Treasury yields continue to climb. Investors are grappling with the possibility that interest rates will remain higher for longer and are trying to decide how to position their portfolios. 

Rising treasury yields is usually bad news for stocks because higher yielding bonds make equities look less attractive. Higher yields also make it more expensive to borrow money, which tends to eat into company earnings and slow economic growth. 

The 10-year Treasury yield hit its highest levels since 2007 on Tuesday. Treasury yields pulled back on Wednesday, sparking a subsequent rally in stocks, but Bank of America shares are lagging behind. 

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On Tuesday, Morgan Stanley cut its price target on Bank of America from $34 to $32 citing concerns over elevated earnings expectations. 

Bank of America is set to report third-quarter financial results before the market opens on Oct. 17. The bank is expected to report earnings of 80 cents per share on quarterly revenue of $25.21 billion, according to estimates from Benzinga Pro. Morgan Stanley is concerned the bar is set too high for a majority of large cap banks. 

Piper Sandler and Oppenheimer also lowered price targets over the last month. Of the 20 analysts that cover Bank of America, 12 have positive ratings, five have neutral ratings and 3 have negative ratings. 

BAC Price Action: Bank of America shares are down more than 22% since the start of the year. The stock was down 0.95% at $25.67 at last check Wednesday afternoon, per Benzinga Pro.

Photo: Mike Mozart from Flickr.