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Diversified Opportunities Report

Bank of America Corporation

Aug 24, 2023

Bank of America Corp
Investment Type
Large-cap
Risk Level
Action
Rec. Price ($)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Bank of America Corporation (NYSE: BAC) is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Price Performance:

  • BAC's share price has corrected by 12.86% in the past month. Moreover, in the long term, the stock has corrected by 17.03% over the past six months.
  • The stock is in its lower band of its 52-week range of USD 38.60 and 52-week low price of USD 26.32. The stock has been in a downward trend since July 25, 2023, correcting by almost 12.64%, with the current price near an important support of USD 26.00-USD 28.00.
  • The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA, with the current RSI of 31.77.

       

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~36.45% of the total shareholding, signifying diverse shareholding. Berkshire Hathaway Inc., and The Vanguard Group, Inc., are the biggest shareholders, holding the maximum stake in the company at ~13.00% and ~7.63%, respectively.

1.4 Key Metrics:

BAC has demonstrated an upward trajectory in its revenue and profitability metrics over the past five years. Over the specified period, NEM's revenue showcased a significant growth, advancing from USD 66,769 million in fiscal year 2018 to USD 72,565 million in fiscal year 2022. Similarly, the company's net profit also exhibited a consistency, from USD 28,147 million in fiscal year 2018 to USD 27,28 million in fiscal year 2022. The company's strategic efforts to enhance revenue and profitability have been evidenced by the remarkable growth observed in the latter year of the five-year period.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q2FY23:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

  • BAC's share price has corrected by 12.86% in the past month. Moreover, in the long term, the stock has corrected by 17.03% over the past six months.
  • The stock is in its lower band of its 52-week range of USD 38.60 and 52-week low price of USD 26.32. The stock has been in a downward trend since July 25, 2023, correcting by almost 12.64%, with the current price near an important support of USD 26.00-USD 28.00.
  • The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA, with the current RSI of 31.77.

4.2 Fundamental Valuation

Valuation Methodology: Price/Book value per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 23, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.