Bank of America Corp’s (BAC) first-quarter earnings, reported on Wednesday, registered a 48.5% slump, since the Wall Street bank set aside $3.6 billion in credit loss provisions as a result of the coronavirus pandemic.
Bank of America shares closed lower for a third consecutive trading session in New York on Wednesday. It has also been the steepest single-session loss since April 1st. The stock went down 6.49% ($1.54) to $22.19, after touching an intraday low at $21.91, or a price level not seen since April 7th ($21.86).
Shares of Bank of America Corporation have retreated 37.00% so far in 2020 compared with a 13.85% loss for the benchmark index, S&P 500 (SPX).
In 2019, Bank of America’s stock went up 42.94%, thus, it outperformed the S&P 500, which registered a 28.88% gain.
Net income attributable to Bank of America’s shareholders shrank to $3.54 billion ($0.40 per share) during the quarter ended on March 31st, from $6.87 billion ($0.70 per share) in the same period a year ago. Analysts on average had anticipated earnings of $0.44 per share.
Analyst stock price forecast and recommendation
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Bank of America Corp’s stock price, have a median target of $27.00, with a high estimate of $37.00 and a low estimate of $20.00. The median estimate represents a 21.68% upside compared to the closing price of $22.19 on April 15th.
The same media also reported that at least 13 out of 25 surveyed investment analysts had rated Bank of America Corp’s stock as “Buy”, while 10 – as “Hold”.
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