How to buy Bank of America shares
Own Bank of America shares in just a few minutes.
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Bank of America Corporation is a banks-diversified business with stocks listed in the US. Bank of America shares (BAC) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$43.27 – an increase of 2.08% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in Bank of America
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Bank of America. Find the share by name or ticker symbol: BAC. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Bank of America reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$43.27, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Bank of America, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Bank of America. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Bank of America key stats
- Compare share trading platforms
- Is Bank of America stock a buy or sell?
- Bank of America performance over time
- Can I short Bank of America shares?
- Is Bank of America suitable for ethical investing?
- Are Bank of America shares over-valued?
- Bank of America's financials
- How volatile are Bank of America shares?
- Does Bank of America pay a dividend?
- Have Bank of America shares ever split?
- Other common questions
Bank of America share priceUse our graph to track the performance of BAC stocks over time.
Bank of America shares at a glance
|52-week range||US$21.896 - US$43.49|
|50-day moving average||US$41.9769|
|200-day moving average||US$36.1596|
|Dividend yield||US$0.72 (1.73%)|
|Earnings per share (TTM)||US$2.3366|
Compare share trading platforms to buy stock
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is it a good time to buy Bank of America stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Bank of America price performance over time
|1 week (2021-06-14)||4.62%|
|1 month (2021-05-21)||2.05%|
|3 months (2021-03-19)||12.30%|
|6 months (2020-12-21)||45.49%|
|1 year (2020-06-19)||71.37%|
|2 years (2019-06-21)||53.88%|
|3 years (2018-06-21)||47.73%|
|5 years (2016-06-21)||217.69%|
Is Bank of America under- or over-valued?
Valuing Bank of America stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Bank of America's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Bank of America's P/E ratio
Bank of America's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Bank of America shares trade at around 15x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Bank of America's PEG ratio
Bank of America's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5149. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Bank of America's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Bank of America financials
|Revenue TTM||US$80.9 billion|
|Operating margin TTM||29.22%|
|Gross profit TTM||US$74.2 billion|
|Return on assets TTM||0.79%|
|Return on equity TTM||834.41%|
|Market capitalisation||US$356.7 billion|
TTM: trailing 12 months
Shorting Bank of America shares
There are currently 80.6 million Bank of America shares held short by investors – that's known as Bank of America's "short interest". This figure is 0.3% up from 80.4 million last month.
There are a few different ways that this level of interest in shorting Bank of America shares can be evaluated.
Bank of America's "short interest ratio" (SIR)
Bank of America's "short interest ratio" (SIR) is the quantity of Bank of America shares currently shorted divided by the average quantity of Bank of America shares traded daily (recently around 40.3 million). Bank of America's SIR currently stands at 2. In other words for every 100,000 Bank of America shares traded daily on the market, roughly 2000 shares are currently held short.
However Bank of America's short interest can also be evaluated against the total number of Bank of America shares, or, against the total number of tradable Bank of America shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Bank of America's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Bank of America shares in existence, roughly 10 shares are currently held short) or 0.0094% of the tradable shares (for every 100,000 tradable Bank of America shares, roughly 9 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Bank of America.
Find out more about how you can short Bank of America stock.
Bank of America's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Bank of America.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Bank of America's total ESG risk score
Total ESG risk: 34.53
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Bank of America's overall score of 34.53 (as at 12/31/2018) is nothing to write home about – landing it in it in the 55th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Bank of America is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Bank of America's environmental score
Environmental score: 7.74/100
Bank of America's environmental score of 7.74 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Bank of America is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Bank of America's social score
Social score: 23.11/100
Bank of America's social score of 23.11 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Bank of America is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Bank of America's governance score
Governance score: 14.68/100
Bank of America's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Bank of America is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Bank of America's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Bank of America scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Bank of America hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||34.53|
|Total ESG percentile||54.88|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||3|
Bank of America share dividends
Dividend payout ratio: 30.9% of net profits
Recently Bank of America has paid out, on average, around 30.9% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.73% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Bank of America shareholders could enjoy a 1.73% return on their shares, in the form of dividend payments. In Bank of America's case, that would currently equate to about $0.72 per share.
While Bank of America's payout ratio might seem fairly standard, it's worth remembering that Bank of America may be investing much of the rest of its net profits in future growth.
Bank of America's most recent dividend payout was on 24 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 2 June 2021 (the "ex-dividend date").
Have Bank of America's shares ever split?
Bank of America's shares were split on a 2:1 basis on 29 August 2004. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Bank of America shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Bank of America shares which in turn could have impacted Bank of America's share price.
Bank of America share price volatility
Over the last 12 months, Bank of America's shares have ranged in value from as little as US$21.896 up to US$43.49. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Bank of America's is 1.5696. This would suggest that Bank of America's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Bank of America overview
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The company's Global Wealth & Investment Management segment offers investment management, brokerage, banking, and trust and retirement products and services; and wealth management solutions, as well as customized solutions, including specialty asset management services. Its Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options and merchant services; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The company's Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. As of April 15, 2021, it served approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers; approximately 17,000 ATMs; and digital banking platforms with approximately 40 million active users. The company was founded in 1784 and is headquartered in Charlotte, North Carolina.
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