B of A Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>BOA</div>
BAC -- USA Stock  

USD 34.71  1.22  3.40%

As many baby boomers are indifferent towards financial services space, it makes sense to go over Bank Of America against current market trends. As we have suggested previously, B of A is beginning its slip as investors shift to be more bearish due to the increased sector volatility. The returns on investing in B of A and the market returns of the last few months appear uncorrelated. Strong basic indicators of the company may also suggest signals of long term gains for B of A investors. Bank Of America is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 19th of January 2021. The stock is undergoing above-average trading activities.
Published over a month ago
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Will B of A (NYSE:BAC) continue to slip in February?
The company's average rating is Buy from 12 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on B of A market sentiment investors' perception of the future value of B of A. Let us look at a few aspects of B of A technical analysis. About 71.0% of the company shares are held by institutions such as insurance companies. Bank Of America has price-to-book (P/B) ratio of 1.16. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity last dividend was issued on the 3rd of December 2020. The firm had 2:1 split on the 30th of August 2004.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Bank Of America. In general, we focus on analyzing B of A stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build B of A's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of B of A's intrinsic value. In addition to deriving basic predictive indicators for B of A, we also check how macroeconomic factors affect B of A price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of B of A's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of B of A in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as B of A. Your research has to be compared to or analyzed against B of A's peers to derive any actionable benefits. When done correctly, B of A's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bank Of America.

How does B of A Stands against Peers?

Analyzing B of A competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to B of A across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out B of A Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for B of A, but it might be worth checking our own buy vs. sell analysis

Sale by Bless Rudolf A of 140677 shares of B of A

Legal trades by B of A insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
B of A insider trading alert for sale of common stock by Bless Rudolf A, Chief Accounting Officer, on 26th of February 2021. This event was filed by Bank Of America Corp with SEC on 2021-02-26. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at B of A Mean Deviation

Bank Of America has current Mean Deviation of 1.78. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
1.78
SUM = Summation notation
RET DEV = Sum of return deviations of B of A
N = Number of calculation points for selected time horizon
Let's now compare B of A Mean Deviation to its closest peers:
BAC
CM
JPM
C
BAC1.78
CM0.78
JPM1.66
C1.87

Will B of A investors exit after the slip?

Current information ratio is at 0.12. Bank Of America has relatively low volatility with skewness of 2.11 and kurtosis of 9.9. However, we advise all investors to independently investigate Bank Of America to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on B of A

Whereas some companies within the banks?diversified industry are still a little expensive, even after the recent corrections, B of A may offer a potential longer-term growth to investors. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to take over new shares of B of A.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Bank Of America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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