What's Going On With Bank Of America Shares?

Zinger Key Points
  • Bank of America shares are trading lower by 1.3% during Friday's session.
  • A number of major U.S. banks reported first-quarter earnings Friday.

Bank of America Corp BAC shares are trading lower by 1.3% to $35.88 during Friday’s session. Shares of several companies in the broader financial sector are trading lower after a number of major U.S. banks reported first-quarter earnings and amid overall market weakness.

What Happened?

Five major U.S. financial institutions reported their first-quarter financial results, exceeding expectations for both earnings and revenue. This highlights the favorable conditions for banks due to rising interest rates and a strong economy.

JPMorgan Chase & Co. particularly stood out, with earnings per share (EPS) of $4.44 and revenue of $42.55 billion, surpassing the expected $41.836 billion. Despite slightly lower loans than expected, the bank showed resilience with lower provision for credit losses compared to estimates…Read More

Is BAC A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Bank of America‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Bank of America does pay a dividend, which yields 3.1% per year as of the closing price on Apr. 12, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 16.59%, you'll need to buy a share of Orchid Island Cap by the Apr. 29, 2024. Once done, you can expect to receive a nominal payout of $0.12 on May. 30, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Bank of America will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, BAC has a 52-week high of $38.35 and a 52-week low of $24.96.

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