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Bank of America Corporation (BAC), through its subsidiaries, provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the United States and internationally.

It is scheduled to report its Q2 2012 results on July 18, 2012, before the market opens. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $80.61B and is currently trading at $7.48 with a 52 week range of $4.92 - $10.36. The stock performance year to date: 34.77%. It is currently trading above 200 SMA, but below 20and 50SMA. Technically it has formed a nice triangle, watch for potential breakout soon.

Key Metrics

  • Trailing P/E: N/A
  • Forward P/E: 7.63
  • Price/Sales: 1.05
  • Price/Book: 0.38
  • Total Debt: 701.83B
  • Annual dividend yield: 0.50%
  • Return on Equity: 0.02%
  • Return on Assets: 0.00%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last quarter. In the last quarter it reported $0.03 EPS, failing to meet analyst estimates of $0.12.

The consensus EPS estimate is $0.15 based on 29 analysts' estimates, up from ($0.90) loss a year ago. Revenue estimates are $22.82B, up from $13.24B a year ago. The median target price by analysts for the stock is $9.25.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 20, 2012, the company was downgraded from Mkt Perform to Mkt Underperform at JMP Securities.
  • On March 26, 2012, the company was downgraded from Outperform to Neutral at Robert W. Baird.

Latest Developments

  • On July 6, 2012, Resolute Mining Limited announced that Bank of America Corporation and its related bodies corporate have ceased to be shareholders of the Company effective June 29, 2012.
  • On July 3, 2012, Bank of America Corp announced that the Board of Directors has authorized dividends on preferred stock. A quarterly cash dividend of $0.38775 per depositary share on the 6.204% Non-Cumulative Preferred Stock, Series D, is payable on September 14, 2012 to shareholders of record as of August 31, 2012.
  • On June 25, 2012, Reuters reported that Julius Baer Gruppe AG in talks with Bank of America Corporation about buying Merrill Lynch's non-U.S. wealth management unit, is particularly interested in its presence in Asia and Latin America.
  • On June 22, 2012, Reuters reported that Ratings agency Moody's downgraded 15 banks on Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities, but banks criticized the move as backward looking.
  • On June 21, 2012, Reuters reported that Bank of America Corp directors have reached a definitive settlement of litigation by shareholders, who accused the bank of overpaying for Merrill Lynch & Co, a federal judge said on Wednesday.
  • On June 19, 2012, Reuters reported that Julius Baer Gruppe AG was in talks about buying Bank of America Corp's non-U.S. wealth management operations, reported to be worth up to $2 billion.
  • On June 15, 2012, Bank of America Corp announced the Board of Directors authorized a regular quarterly dividend of $18.125 per share on the 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L. The dividend is payable on July 30, 2012 to shareholders of record as of July 1, 2012.
  • On June 12, 2012, Indophil Resources NL announced that Bank of America Corporation and its related bodies corporate have ceased to be shareholders of the Company effective June 7, 2012.
  • On May 25, 2012, Bank of America Corp announced that it and Barclays Bank PLC have entered into an agreement with Equity Residential and Lehman Brothers Holdings Inc pursuant to which Bank of America and Barclays will sell their remaining 26.5% interest in Archstone, a privately held owner, operator and developer of multifamily apartment properties, for a purchase price of $1.58 billion to Lehman pursuant to Lehman's exercise of its right of first offer.
  • On May 22, 2012, Reuters reported that the U.S. government has filed three lawsuits against a group of large banks over losses on soured mortgage debt purchased by two small Illinois banks that failed in 2009.
  • On May 22, 2012, Reuters reported that Credit Suisse Group AG had won the latest auction of mortgage-linked collateralized debt obligations from The New York Fed's Maiden Lane III portfolio of assets assumed from American International Group, Inc. during the insurer's bailout in 2008.
  • On May 21, 2012, Elders Limited announced that Bank Of America Corporation and its related bodies corporate have ceased to be shareholders of the Company effective May 17, 2012.
  • On May 17, 2012, Reuters reported that Royal Bank of Canada and Credit Suisse Group AG are among suitors who have put in initial bids to buy the non-U.S. wealth management business of Bank of America Corporation in a deal that could be worth about $2 billion.
  • On May 15, 2012, Reuters reported that a U.S. federal judge in New York on Monday refused to delay the approval process for a controversial $20 million settlement between Bank of America Corp Directors and shareholders who accused the bank of overpaying for Merrill Lynch & Co. U.S. District Judge Kevin Castel rejected as premature a request by another shareholder group, pursuing a similar lawsuit against Bank of America directors, to intervene in the New York case.
  • On May 11, 2012, Beach Energy Ltd announced that Bank Of America Corporation and its related bodies corporate have ceased to be shareholders of the Company effective May 8, 2012.
  • On May 10, 2012, Reuters reported that the New York Federal Reserve sold all its TRIAXX collateralized debt obligations from a portfolio of assets that was used in the government bailout of insurer American International Group, Inc. to Bank of America Corp's Merrill Lynch, following a competitive bid process with eight other Wall Street firms.
  • On May 1, 2012, Reuters reported that Bank of America Corporation is planning to cut up to 400 jobs in its investment banking, corporate banking, and sales and trading units, the Wall Street Journal reported, citing people familiar with the situation.
  • On April 27, 2012, Noble Mineral Resources Ltd announced that Bank of America Corporation and its related bodies corporate have ceased to be substantial shareholders of the Company effective April 24, 2012.
  • On April 25, 2012, Reuters reported that a New York judge on Tuesday rejected an effort by American International Group, Inc. and other objectors to Bank of America Corporation's proposed $8.5 billion mortgage bond settlement to convert the case to a proceeding that may have widened its scope.
  • On April 24, 2012, MacroSolve Inc announced its latest patent infringement suits filed against AOL, Inc., and Bank of America Corporation. MacroSolve's suit claims that both companies infringed upon its U.S. Patent No. 7,822,816.
  • On April 23, 2012, Dow Jones reported that Citigroup Inc, Credit Suisse Group AG and Goldman Sachs Group Inc are banding together to outbid five other Wall Street dealers for some $7.5 billion in complex commercial mortgage-backed securities taken on by the Federal Reserve Bank of New York during the 2008 bailout of American International Group.
  • On April 21, 2012, The Associated Press reported that a recently proposed $20 million settlement of shareholder claims by Bank of America Corporation over its 2009 acquisition of Merrill Lynch is being challenged by a separate group of shareholders as too small.
  • On April 19, 2012, Reuters reported that a federal judge on Wednesday dismissed claims against Goldman Sachs Group Inc, JPMorgan Chase & Co. and 40 other defendants that they helped mislead investors in General Electric Co's $12.2 billion stock offering in 2008.
  • On April 18, 2012, SeeNews - The Corporate Wire reported that the shares of Apple Inc, Visa Inc, Intel Corp, The Coca-Cola Company and Bank of America Corp can be traded on the Bucharest bourse as of April 18, 2012.
  • On April 17, 2012, Reuters reported that Bank of America Corporation's Bank of America Merrill Lynch has put its wealth management units outside the United States up for sale, hoping to bring in up to $3 billion for the sub-scale business.
  • On April 13, 2012, Reuters reported that Bank of America Corporation and US Bancorp have been sued by a Chicago pension fund that said they failed to protect investors in their roles as trustees for mortgage backed securities for Washington Mutual Inc.
  • On April 11, 2012, Stanmore Coal Limited announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 9,955,225 ordinary shares, which represents 6.22% of the voting power.
  • On April 11, 2012, Carabella Resources Ltd announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 10,124,807 ordinary shares, which represents 6.65% of the voting power.
  • On April 11, 2012, Bucharest Stock Exchange announced that Apple Inc, Bank of America Corp, Intel Corp, The Coca-Cola Company and Visa Inc will start trading on the alternative trading system of the Bucharest Stock Exchange on April 18, 2012.
  • On April 10, 2012, Noble Mineral Resources Ltd announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 64,568,387 ordinary shares, which represents 5.79% of the voting power.
  • On April 3, 2012, Beach Energy Ltd announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 64,568,387 ordinary shares, which represents 5.79% of the voting power.
  • On March 23, 2012, Platinum Australia Limited (PLA) announced that Bank of America Corporation and its related bodies corporate have ceased to be a substantial holder in the Company as of March 21, 2012.
  • On March 19, 2012, Dart Energy Ltd announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 48,332,581 ordinary shares, which represents 6.57% of the voting power.
  • On March 16, 2012, Law Firm of Klayman & Toskes announced that it is continuing to investigate claims against Merrill Lynch, a part of Bank of America, on behalf of customers of Phil Scott a/k/a Walter Schlaepfer, and the Phil Scott Team.
  • On March 14, 2012, Elders Limited announced that Bank of America Corporation and its related bodies corporate have decreased the stake in the Company from 62,674,510 ordinary shares (13.97% of the voting power) to 49,228,166 ordinary shares (10.97% of the voting power).
  • On March 6, 2012, Beach Energy Limited announced that Bank Of America Corporation and its related bodies corporate have acquired a holding interest of 69,201,661 ordinary shares, which represents 6.21% of the voting power.
  • On March 5, 2012, Beach Energy Limited announced that Bank Of America Corporation and its related bodies corporate have ceased to be a substantial holder in the Company.
  • On February 16, 2012, Reuters reported that Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.
  • On February 7, 2012, Reuters reported that Bank of America Corporation won class-action status for their lawsuit accusing the bank of fraudulently misleading them about the 2008 takeover of Merrill Lynch & Co and the size of Merrill's losses and bonus payouts.
  • On January 25, 2012, The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (K&T) announced that it is investigating potential claims against Merrill Lynch, a part of Bank of America, on behalf of customers of Phil Scott a/k/a Walter Schlaepfer, and the Phil Scott Team.

Competitors

Bank of America Corporation operates in Regional - Mid-Atlantic Banks industry. The company could be compared to Citigroup, Inc. (C), JPMorgan Chase & Co. (JPM), Royal Bank of Canada (RY), U.S. Bancorp (USB), and Wells Fargo & Company (WFC). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)BAC Chart

BAC data by YCharts

Competitors' Latest Developments

  • On July 7, 2012, An American investor filed a class-action lawsuit against British banking giant Barclays PLC, JPMorgan Chase & Co., Citigroup Inc and a group of other banking defendants claiming the banks' alleged manipulation of the Euro Interbank Offered Rate (Euribor) cost investors millions of dollars in a practice that began as early as 2005.
  • On July 6, 2012, Reuters reported that a U.S. judge has ordered JPMorgan Chase & Co. to explain why the court should not force the bank to turn over 25 internal emails demanded as part of an investigation into whether it manipulated electricity markets in California and the Midwest.
  • On July 4, 2012, Reuters reported that U.S. energy regulators have subpoenaed JPMorgan Chase & Co. to produce 25 internal emails as part of an investigation into whether the bank manipulated electricity markets in California and the Midwest.
  • On July 3, 2012, Reuters reported that JPMorgan Chase & Co.'s One Equity Partners, the Company's private investment arm, will buy technology services firm M*Modal Inc. for about $1.1 billion in cash.
  • On June 26, 2012, Citigroup Inc announced that it has been awarded a contract renewal of its fund services to Victory Capital Management and to the Victory Funds. Citi will continue to provide administration and accounting services to Victory Capital Management and serve as the global custodian and transfer agent to the Victory Funds.
  • On June 25, 2012, Integra Mining Ltd. announced that JPMorgan Chase & Co. and its affiliates have ceased to be shareholders of the Company effective April 9, 2012.
  • On June 25, 2012, Wells Fargo & Company announced that it has reached a definitive agreement to acquire WestLB's subscription finance portfolio. The portfolio contains approximately $6 billion in commitments (approximately $3 billion outstanding).
  • On June 22, 2012, Reuters reported that Ratings agency Moody's downgraded 15 banks on Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities, but banks criticized the move as backward looking.
  • On June 21, 2012, Reuters reported that JPMorgan Chase & Co.'s asset management business has created a new unit, which will oversee $100 billion in assets under management and incorporate teams from the company's investment management and wealth management divisions.
  • On June 19, 2012, Reuters reported that Japan has excluded Nomura Holdings, Inc. from working on the government's sale of roughly $6 billion worth of JAPAN TOBACCO INC. shares.
  • On June 19, 2012, US Bancorp announced that it has declared a quarterly dividend of $0.195 per common share, payable July 16, 2012, to shareholders of record at the close of business on June 29, 2012.
  • On June 15, 2012, Wells Fargo & Co announced that it has doubled its ExpressSend remittance network payout locations in India through an agreement with HDFC Bank Limited.
  • On June 6, 2012, Reuters reported that U.S. bank regulators will review whether JPMorgan Chase & Co. executives should have to give back compensation due to the bank's failed hedging strategy that has produced at least $2 billion in losses.
  • On May 31, 2012, Dow Jones reported that Citigroup Inc isn't planning to sell its Polish unit, Bank Handlowy w Warszawie SA. Other information of the deal were not disclosed.
  • On May 31, 2012, Morgan Stanley announced that it has advised Citigroup Inc. that on June 1, 2012, it intends to give notice that it is exercising its right to purchase an additional 14% of Morgan Stanley Smith Barney Holdings LLC (MSSB).
  • On May 30, 2012, Reuters reported that Wells Fargo & Co as promised $432.5 million in lending and other payments to end a lawsuit accusing the bank of discriminatory lending practices in Memphis, Tennessee.
  • On May 25, 2012, Citigroup Inc announced that it has sold 404 million common shares in Akbank T.A.S. (Akbank) through an equity offering representing 10.1% of the equity interest in the Company for TRY5.24 per share.
  • On May 23, 2012, Reuters reported that the head of the U.S. Securities and Exchange Commission told lawmakers on Tuesday that her agency is probing JPMorgan Chase & Co.'s financial reporting and emphasized that big banks are required to publicly disclose changes to the models they use to measure risk.
  • On May 22, 2012, Reuters reported that the U.S. government has filed three lawsuits against a group of large banks over losses on soured mortgage debt purchased by two small Illinois banks that failed in 2009.
  • On May 22, 2012, Reuters reported that Credit Suisse Group AG had won the latest auction of mortgage-linked collateralized debt obligations from The New York Fed's Maiden Lane III portfolio of assets assumed from American International Group, Inc. during the insurer's bailout in 2008.
  • On May 22, 2012, Reuters reported that the U.S. government has filed three lawsuits against a group of large banks over losses on soured mortgage debt purchased by two small Illinois banks that failed in 2009.
  • On May 21, 2012, Reuters reported that JPMorgan Chase & Co.'s CEO Jamie Dimon took another step in the wake of $2 billion loss, or more, on derivatives by announcing on Monday that the Company will quit spending capital on stock buybacks.
  • On May 19, 2012, Reuters reported that Citigroup Inc and its Chief Executive Vikram Pandit on Friday won a dismissal of New York real estate developer Sheldon Solow's lawsuit accusing them of securities fraud for hiding the bank's risks during the 2008 financial crisis.
  • On May 19, 2012, Reuters reported that The Commodity Futures Trading Commission (CFTC) has opened an investigation into possible wrongdoing at JPMorgan Chase & Co in connection with the bank's multi-billion-dollar trading loss, a source familiar with the probe told Reuters.
  • On May 18, 2012, Law Offices of Howard G. Smith announced that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of JPMorgan Chase & Co. between April 13, 2012, and May 11, 2012, inclusive (the Class Period).
  • On May 17, 2012, Reuters reported that JPMorgan Chase & Co., CEO Jamie Dimon took another step that showed humility and caution in the wake of a stunning $2 billion loss, or more, on derivatives by announcing on Monday that the Company will quit spending capital on stock buybacks.
  • On May 16, 2012, Reuters reported that The FBI has opened an inquiry into the multibillion-dollar trading losses at JPMorgan Chase, stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators' attention last month.
  • On May 11, 2012, JPMorgan Chase & Co. announced that it has suffered $2 billion or more in trading losses. A May 11, 2012 Wall Street Journal article indicates the 'losses stemmed from wagers gone wrong in the bank's Chief Investment Office' and involved losses in derivative positions.
  • On May 11, 2012, Levi & Korsinsky announced that it is investigating potential claims on behalf of purchasers of JPMorgan Chase & Co. (JPMorgan or the Company)securities concerning possible breaches of fiduciary duty.
  • On May 10, 2012, Citigroup Inc announced that it has been appointed by Phase4 Ventures, London based venture capital firm, to provide document safekeeping and fund administration services.
  • On May 10, 2012, Reuters reported that the New York Federal Reserve sold all its TRIAXX collateralized debt obligations from a portfolio of assets that was used in the government bailout of insurer American International Group, Inc. to Bank of America Corp's Merrill Lynch, following a competitive bid process with eight other Wall Street firms.
  • On May 7, 2012, Rompres reported that five new United States companies will be listed on the Alternative Trading System of the Bucharest Stock Exchange International Department, starting on May 10, 2012.
  • On May 3, 2012, Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") announced that it is investigating claims on behalf of Citigroup, Inc. shareholders who sustained investment losses due to an over-concentration of Citigroup stock.
  • On May 1, 2012, Reuters reported that Citigroup Inc, Morgan Stanley, UBS AG and Wells Fargo & Co on Tuesday agreed to pay more than $9.1 million in fines and restitution for selling leveraged and inverse exchange-traded funds 'without reasonable supervision'.
  • On April 25, 2012, Citigroup Inc announced that it has been awarded a contract to deliver hedge fund middle office services to Spartus Capital Management LP -- a new divergent volatility strategies hedge fund.
  • On April 25, 2012, JPMorgan Chase & Co. announced that Freepoint Commodities LLC, has entered into a definitive agreement to acquire J.P. Morgan Metals & Concentrates LLC, merchant of physical base metal concentrates and copper cathodes.
  • On April 24, 2012, Wells Fargo & Co announced a quarterly common stock dividend of $0.22 per share. The dividend is payable June 1, 2012, to stockholders of record on May 4, 2012.
  • On April 24, 2012, Wells Fargo Bank, part of Wells Fargo & Co announced that it has closed the acquisition of the North American reserved-based and related diversified energy lending business of BNP Paribas.
  • On April 23, 2012, Dow Jones reported that Citigroup Inc, Credit Suisse Group AG and Goldman Sachs Group Inc are banding together to outbid five other Wall Street dealers for some $7.5 billion in complex commercial mortgage-backed securities taken on by the Federal Reserve Bank of New York during the 2008 bailout of American International Group.
  • On April 19, 2012, Reuters reported that a federal judge on Wednesday dismissed claims against Goldman Sachs Group Inc, JPMorgan Chase & Co. and 40 other defendants that they helped mislead investors in General Electric Co's $12.2 billion stock offering in 2008.
  • On April 18, 2012, Citigroup Inc announced that it has declared a quarterly dividend on the Company's common stock of $0.01 per share, payable on May 25, 2012 to stockholders of record on May 7, 2012.
  • On April 17, 2012, Citigroup Inc announced that Michael E. O'Neill was appointed Chairman of the Board of Directors of Citi following its annual meeting of stockholders in Dallas.
  • On April 13, 2012, Reuters reported that Bank of America Corporation and US Bancorp have been sued by a Chicago pension fund that said they failed to protect investors in their roles as trustees for mortgage backed securities for Washington Mutual Inc.
  • On April 4, 2012, Reuters reported that according to the Commodity Futures Trading Commission (CFTC) JPMorgan Chase & Co will pay $20 million to settle charges that it unlawfully handled customer segregated funds at Lehman Brothers Holdings Inc.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Bank Of America