With shares of Bank of America (NYSE:BAC) trading around $15, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through several business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.
Bank of America announced Tuesday that it has resubmitted its capital plan after disclosing a $4 billion capital error a month earlier. The error had caused the company to suspend its plan to return capital to its shareholders through an increased dividend and a share repurchase. Though the company has not revealed specific details of the plan, it has been confirmed that the new plan will be smaller than the previous one, which included a dividend increase from $0.01 to $0.05 and $4 billion repurchase authorization. The company has also said that the revisions will not significantly affect the reported capital ratios and that any reductions will be less than one basis point.