B of A Stock Buy Hold or Sell Recommendation

BAC
 Stock
  

USD 32.31  0.23  0.72%   

Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Bank Of America is 'Strong Hold'. Macroaxis provides B of A buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding B of A positions. The advice algorithm takes into account all of B of A's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from B of A's buy-and-hold perspective. Continue to B of A Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as B of A and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Bank Of America.

Execute B of A Buy or Sell Advice

The B of A recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Bank Of America. Macroaxis does not own or have any residual interests in Bank Of America or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute B of A's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell B of ABuy B of A
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Close to AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Bank Of America has a Risk Adjusted Performance of (0.31), Jensen Alpha of (0.29), Total Risk Alpha of (0.24) and Treynor Ratio of (0.41)
Our advice module can be used to complement B of A investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time. To make sure B of A is not overpriced, please confirm all Bank Of America fundamentals, including its revenue, cash and equivalents, and the relationship between the price to book and ebitda . Given that Bank Of America has a number of shares shorted of 75.26 M, we suggest you to validate Bank Of America market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

B of A Trading Alerts and Improvement Suggestions

Bank Of America generated a negative expected return over the last 90 days
Bank Of America has about 818.2 B in cash with (295 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 101.55, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Bank Of America has a frail financial position based on the latest SEC disclosures
Roughly 72.0% of the company shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Exercise or conversion by Brian Moynihan of 15852 shares of B of A subject to Rule 16b-3

B of A current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. B of A analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. B of A analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price48.66
Target Median Price48.00
Target High Price66.00
Recommendation Mean2.20
Number Of Analyst Opinions24
Target Low Price40.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

B of A Returns Distribution Density

The distribution of B of A's historical returns is an attempt to chart the future uncertainty of B of A's future price movements. The chart of the probability distribution of B of A stock daily returns describes the distribution of returns around its average expected value. We use Bank Of America price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of B of A returns is essential to provide solid investment advice for B of A stock.
Mean Return-0.44Value At Risk-3.49
Potential Upside3.38Standard Deviation2.01
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of B of A historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

B of A Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as B of A is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bank Of America backward and forwards among themselves. B of A's institutional investor refers to the entity that pools money to purchase B of A's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Berkshire Hathaway IncCommon SharesB41.6 B
Vanguard Group IncCommon Shares591.2 M24.4 B
Blackrock IncCommon Shares498.6 M20.6 B
State Street CorpCommon Shares325.3 M13.4 B
Fmr LlcCommon Shares216.7 M8.9 B
Jpmorgan Chase CoCommon Shares126.9 M5.2 B
Geode Capital Management LlcCommon Shares117.7 M4.8 B
Note, although B of A's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

B of A Cash Flow Accounts

201720182019202020212022 (projected)
Depreciation Amortization and Accretion2.1 B2.06 B1.73 B1.84 B1.9 B1.99 B
Net Cash Flow or Change in Cash and Cash Equivalents9.7 B19.97 B(15.84 B)218.9 B(32.24 B)(33.09 B)
Issuance Purchase of Equity Shares(12.81 B)(20.09 B)(28.14 B)(7.03 B)(25.13 B)(25.79 B)
Issuance Repayment of Debt Securities19.57 B8.82 B(16.25 B)9.39 B56.29 B60.73 B
Payment of Dividends and Other Cash Distributions(5.7 B)(6.89 B)(5.93 B)(7.73 B)(8.05 B)(8.27 B)
Net Cash Flow from Financing49.27 B53.12 B3.38 B355.82 B291.65 B314.68 B
Net Cash Flow from Investing(51.54 B)(71.47 B)(80.63 B)(177.66 B)(313.29 B)(321.54 B)
Net Cash Flow Investment Acquisitions and Disposals(59.95 B)(69.48 B)(77.66 B)(174.18 B)(309.81 B)(317.96 B)
Net Cash Flow from Operations9.86 B39.52 B61.78 B37.99 B(7.19 B)(7.38 B)
Effect of Exchange Rate Changes on Cash2.1 B(1.2 B)(368 M)2.76 B(3.41 B)(3.5 B)
Share Based Compensation1.65 B1.73 B1.97 B2.03 B2.77 B2.29 B

B of A Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to B of A or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that B of A stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a B of A stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.29
β
Beta against DOW1.10
σ
Overall volatility
2.03
Ir
Information ratio -0.15

B of A Volatility Alert

Bank Of America exhibits very low volatility with skewness of 0.59 and kurtosis of 0.73. However, we advise investors to further study Bank Of America technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure B of A's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact B of A's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

B of A Implied Volatility

B of A's implied volatility exposes the market's sentiment of Bank Of America stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if B of A's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that B of A stock will not fluctuate a lot when B of A's options are near their expiration.

B of A Fundamentals Vs Peers

Comparing B of A's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze B of A's direct or indirect competition across all of the common fundamentals between B of A and the related equities. This way, we can detect undervalued stocks with similar characteristics as B of A or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of B of A's fundamental indicators could also be used in its relative valuation, which is a method of valuing B of A by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare B of A to competition
FundamentalsB of APeer Average
Return On Equity11.47 %(0.31) %
Return On Asset1.00 %(0.14) %
Profit Margin33.61 %(1.27) %
Current Valuation81.61 B16.62 B
Shares Outstanding8.18 B571.82 M
Shares Owned by Insiders0.12 %10.09 %
Shares Owned by Institutions72.13 %39.21 %
Number of Shares Shorted75.26 M4.71 M
Price to Earning9.76 X28.72 X
Price to Book1.08 X9.51 X
Price to Sales2.89 X11.42 X
Revenue92.22 B9.43 B
Gross Profit93.71 B27.38 B
EBITDA23.82 B3.9 B
Net Income29.6 B570.98 M
Cash and Equivalents818.2 B2.7 B
Cash per Share101.55 X5.01 X
Total Debt585.2 B5.32 B
Debt to Equity7.37 %48.70 %
Book Value Per Share30.22 X1.93 K
Cash Flow from Operations(295 M)971.22 M
Short Ratio1.46 X4.00 X
Earnings Per Share3.34 X3.12 X
Price to Earnings To Growth0.68 X4.89 X
Number of Employees208 K18.84 K
Beta1.39-0.15
Market Capitalization266.8 B19.03 B
Total Asset660.95 B29.47 B
Retained Earnings134.84 B9.33 B
Five Year Return1.94 %
Last Dividend Paid0.84
   Exercise or conversion by Brian Moynihan of 15852 shares of B of A subject to Rule 16b-3 [view details]

B of A Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as B of A . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution3.7 M
Daily Balance Of Power0.1494
Rate Of Daily Change1.01
Day Median Price32.0
Day Typical Price32.1
Price Action Indicator0.43

About B of A Buy or Sell Advice

When is the right time to buy or sell Bank Of America? Buying financial instruments such as B of A Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although B of A investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents443.26 B691.07 B606.09 B564.31 B
Total Assets2,434.08 B2,819.63 B3,169.49 B3,033.27 B

Use Investing Ideas to Build Portfolios

In addition to having B of A in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Medical Equipment
Medical Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Medical Equipment theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Medical Equipment Theme or any other thematic opportunities.
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Continue to B of A Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Bank Of America information on this page should be used as a complementary analysis to other B of A's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running Bank Of America price analysis, check to measure B of A's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy B of A is operating at the current time. Most of B of A's value examination focuses on studying past and present price action to predict the probability of B of A's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move B of A's price. Additionally, you may evaluate how the addition of B of A to your portfolios can decrease your overall portfolio volatility.
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Is B of A's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of B of A. If investors know B of A will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about B of A listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.07
Market Capitalization
260.3 B
Quarterly Revenue Growth YOY
-0.06
Return On Assets
0.01
Return On Equity
0.11
The market value of Bank Of America is measured differently than its book value, which is the value of B of A that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because B of A's market value can be influenced by many factors that don't directly affect B of A's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine B of A value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.