In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from RF and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.14 EPS, beating analyst estimates of $0.08.
The consensus EPS estimate is $0.14 based on 27 analysts' estimates, up from $0.04 a year ago. Revenue estimates are $1.36B, down from $1.64B a year ago. The median target price by analysts for the stock is $7.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On June 14, 2012, Goldman Sachs upgraded the company from Neutral to Buy.
- On June 3, 2012, Deutsche Bank downgraded the company from Buy to Hold.
- On April 25, 2012, FBR Capital reiterated Mkt Perform rating for the company.
- On February 8, 2012, Compass Point upgraded the company from Neutral to Buy.
- On January 24, 2012, RBC Capital Mkts upgraded the company from Sector Perform to Outperform.
- On April 2, 2012, Regions Financial Corporation announced that it has completed the sale of Morgan Keegan & Company, Inc. and related affiliates to Raymond James Financial Inc. for approximately $1.2 billion.
- On March 14, 2012, Regions Financial Corporation announced that it has priced a public offering of 152.9 million shares of its common stock at a price to the public of $5.90 per share.
- On March 13, 2012, Regions Financial Corporation announced that it has commenced an underwritten public offering of approximately $900 million of its common stock (the "Offering") as part of its plan to repurchase the $3.5 billion of Series A Preferred Stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program's (TARP) Capital Purchase Program (CPP).
Bank of America (BAC), BB&T (BBT), First Horizon National (FHN), Hancock Holding (HBHC), and SunTrust Banks (STI) are considered major competitors for Regions Financial Corporation in southeast region and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Development
- On July 18, 2012, Syncora Holdings Ltd announced that its wholly owned, New York financial guarantee insurance subsidiary, Syncora Guarantee Inc., had settled its RMBS-related claims and other claims, with Countrywide Financial Corporation, Bank of America Corporation and affiliates thereof.
- On July 11, 2012, Bank of America Corp announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.01 per share, payable on September 28, 2012 to shareholders of record as of September 7, 2012.
- On July 11, 2012, The Securities Arbitration Law Firm of Klayman & Toskes (K&T), announced that it filed a securities arbitration claim against Merrill Lynch, a division of Bank of America, on behalf of an 81 year old retiree who sustained losses of about $350,000 in Fannie Mae preferred stock.
- 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 18, 2012, Hancock Holding Co. announced that Whitney Bank (the Bank), a wholly-owned subsidiary of Hancock Holding Company, has commenced a cash tender offer (the Offer) to purchase up to $75,000,000 aggregate principal amount, which may be increased by the Bank in its sole discretion (the Maximum Tender Amount), of its 5.875% Subordinated Notes due 2017 (the Notes).
- 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 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, 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.
The stock has a market capitalization of $9.39B and is currently trading at $6.65 with a 52 week range of $2.82 - $6.98. The stock's year-to-date performance has been 55.01%. It is currently trading above 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.