The bank will broadcast the conference call on their website. There are always risks in investing, but when everyone knows these risks and it is overly-priced in, I’m much less concerned than when there is the perception of low risk.
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Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company.
While the total amount of the bank’s loans was basically unchanged, the institution continued to dispose of troubled loans left over from the financial crisis and made more loans to businesses and individuals.
[Photo by Justin Sullivan / Getty Images]2.
Bank of America Corporation (NYSE:BAC) reported the Board of Directors has authorized dividends on the following series of preferred stock: A quarterly cash dividend of $0.38775 per depositary share on the 6.204 percent Non-Cumulative Preferred Stock, Series D, is payable on December 14 to shareholders of record as of November 30. I see it as an opportunity in the high $50s, but not until the smoke clears. The consensus among the 29 is $0.33. Bank of America is pushing to further reduce expenses in that unit, which posted a loss in the third quarter.
Over the past 90-day period, the consensus BAC EPS view has fallen from $0.35 to today’s $0.33 and ranged between $0.33 and $0.36.
The effective tax rate for the third quarter of 2015 was 26 percent, which comprised benefits related to the restructuring of certain non-U.S. auxiliaries. Nasdaq -00 futures edged lower by 3 points, or 0.1%, to 4,338.25.
Noninterest income of $1.7 billion for the third quarter reduced $101 million, or 6 percent, contrast with the second quarter primarily due to higher second quarter gains on asset sales. The company is now valued at around $159.31 billion. The firm at present has “Market Perform” rating on the stock.
On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, Nguyen Thong M, officer (Pres, Ret. Bnkg & Co-Hd CB) of Bank Of America Corp /De/, unloaded 7,520 shares at an average price of $18.06 on July 21, 2015. On average, equities analysts anticipate that Bank of America will post $1.41 EPS for the current fiscal year.
In a stock market with very few no-brainer investments, Bank of America stands out as a clear exception. The Economist suggests that securitization may be making a return “from the dead”. Bank of America is reported to be sitting on $494.7 billion in cash and to hold $539.9 billion in debt, spread across dozens of different issues, according to Yahoo Finance, giving Bank of America a debt to equity ratio of 124 percent, according to Morningstar. Keefe, Bruyette & Woods upped their price objective on Bank of America from $17.00 to $20.00 and gave the stock a “market perform” rating in a report on Thursday, July 16th.
Importantly, the market had a considerably muted reaction to Bank of America’s third quarter earnings release. The shares last traded at $15.52.
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[Photo by Justin Sullivan / Getty Images]5. Tangible book value growth has been stunted by legal charges and expenses pertaining to the legacy portfolio, but despite these issues, Bank of America has continuously made improvements to its balance sheet to where I’m confident it could survive just about any crisis you could throw at it.
