Bank of America Stock (BAC) Today: Buffett Trims Stake as Crypto Pivot and 2026 Outlook Shape the Bull Case – December 2, 2025

Bank of America Corporation (NYSE: BAC) is trading near record territory on December 2, 2025, even as Warren Buffett continues to trim his long‑held stake and Wall Street prices in a slower‑growth equity market for 2026. The latest headlines around Bank of America stock center on a bullish new macro forecast from BofA Global Research, a high‑profile shift into crypto for wealth clients, fresh analyst upgrades, and a technical setup that traders say could precede a breakout. ^[1]

Below is a detailed look at the most important news, forecasts, and analysis for BAC as of December 2, 2025.

Bank of America stock price and performance on December 2, 2025

Multiple data providers show Bank of America stock changing hands in the low‑to‑mid $53 range today, keeping the share price just below its recent records:

• Recent price: BAC opened around $53.24 this morning; recent coverage notes intraday trading near $53.3–$53.4. ^[2]
• 52‑week range: roughly $33.06–$54.69, putting today’s level very close to the top of the range and just shy of all‑time closing highs near $54. ^[3]
• Valuation: recent snapshots show a P/E ratio of about 14.5, a PEG ratio near 2.0, and beta around 1.34, implying a modest premium to some bank peers but below many growth‑oriented sectors. ^[4]
• Market capitalization: around $390 billion at current prices. ^[5]
• Performance: year‑to‑date total return is in the mid‑20% range (about 23–24%), outpacing the S&P 500 and cementing BAC as one of the stronger large‑bank performers in 2025. ^[6]

In other words, Bank of America stock is no longer in “deep value” territory, but it is still trading on a mid‑teens earnings multiple despite double‑digit profit growth.

Fresh macro call: BofA Global Research sees stronger 2026 growth, modest equity returns

The biggest bank‑produced headline today comes from BofA Global Research’s 2026 outlook, released on December 2, 2025. ^[7]

Key points from the new forecast:

• US growth: BofA’s economists now expect 2.4% U.S. GDP growth (4Q/4Q) in 2026, a more optimistic view than consensus. ^[8]
• China growth: they project 4.7% GDP growth for China in 2026 and 4.5% in 2027. ^[9]
• Equities: the team sees ~14% S&P 500 EPS growth in 2026, but only 4–5% price appreciation, with a year‑end S&P target of 7,100, implying multiple compression as earnings do the heavy lifting. ^[10]
• Rates: BofA expects the Federal Reserve to cut rates by 25 bps in December 2025 and twice more in 2026 (June and July), with the 10‑year Treasury yield ending 2026 near 4.0–4.25%. ^[11]
• Theme of the outlook: an AI‑driven, “K‑shaped” economy, with continued volatility but no immediate AI bubble in their view. ^[12]

Why it matters for BAC stock:

• Bank of America is one of the most interest‑rate‑sensitive big U.S. banks, so a path of gradual, limited rate cuts paired with solid growth is close to a “goldilocks” outcome: net interest margins compress slower, loan demand can improve, and credit losses are easier to manage. TS2 Tech+1
• At the same time, muted index‑level returns and higher volatility could be good for trading, hedging, and wealth‑management activity, all core profit drivers for BAC. ^[13]

This outlook is a clear piece of the bull case many analysts are building around Bank of America stock going into 2026.

Earnings momentum: Q3 2025 results underpin the rally

The current share price rests on increasingly strong fundamentals. Bank of America’s Q3 2025 results, released October 15, were described by several outlets as among the bank’s strongest quarters in years. TS2 Tech+2Reuters+2

Headline numbers:

• Net income: $8.5 billion, up from $6.9 billion a year earlier (about 23% growth). ^[14]
• Diluted EPS: $1.06, versus $0.81 in Q3 2024 and beating Wall Street estimates around $0.95. ^[15]
• Revenue (net of interest expense): about $28.1 billion, up roughly 11% year over year. ^[16]
• Net interest income (NII): around $15.2 billion, up ~9% year over year, a record for the bank. ^[17]
• Investment banking fees: jumped roughly 43% to around $2 billion, as global M&A recovered and debt and equity issuance increased. ^[18]
• Return on tangible common equity (ROTCE): about 15.4% in Q3. TS2 Tech+1

Research coverage from Fintool and others notes that BAC also delivered positive operating leverage in the quarter (revenue grew faster than expenses), with the efficiency ratio falling into the low 60s. ^[19]

This earnings momentum is one reason Zacks Equity Research highlighted Bank of America on December 1 in an article titled “Earnings Growth & Price Strength Make Bank of America (BAC) a Stock to Watch,” pointing to rising earnings and strong price action as supportive factors. ^[20]

Investor Day and strategy: higher return targets, more AI and expansion

On November 5, 2025, CEO Brian Moynihan hosted Bank of America’s first full Investor Day since 2011, using the event to reset expectations for the coming cycle. Reuters reports several big changes: ^[21]

• Higher profitability targets
  • New medium‑term ROTCE goal: 16–18%, up from “mid‑teens” previously.
  • This aligns BAC with the upper tier of big‑bank peers, though some analysts wanted the bar set even higher. ^[22]
• Net interest income growth
  • BofA now targets 5–7% annual NII growth over the next five years, assuming modest rate cuts and steady loan growth. ^[23]
• Expansion and technology
  • Planned branch expansion into six additional U.S. cities through 2028, adding access to more than $200 billion in deposits and densifying its “national franchise.” ^[24]
  • Heavy investment in artificial intelligence and technology—roughly $4 billion in new tech spending in 2025, with AI increasingly central to automation, fraud prevention, and personalized banking. TS2 Tech+1

Analysts broadly see these goals as achievable but not overly aggressive—a sign BAC is aiming to close the return gap versus JPMorgan and other top‑tier peers, without promising numbers that could be hard to deliver if the macro backdrop turns. ^[25]

New crypto guidance: 1–4% allocation and Bitcoin ETFs for wealth clients

One of the most attention‑grabbing strategy headlines today is Bank of America’s pivot on cryptocurrencies.

Two separate reports (Parameter.io and CoinCentral) say the bank has issued new guidance suggesting that suitable Merrill and Private Bank clients consider a 1–4% allocation to crypto, primarily via spot Bitcoin ETFs, starting January 5, 2026. ^[26]

Highlights of the policy shift:

• BAC is introducing a formal crypto allocation range (1–4%) for certain wealth clients, described as its boldest digital‑asset move so far. ^[27]
• The bank will begin coverage of four spot Bitcoin ETFs from Bitwise, Fidelity, Grayscale, and BlackRock, available through advisory channels. ^[28]
• Previously, BAC advisers generally could not proactively recommend crypto products; clients had to initiate the conversation. The new framework empowers around 15,000 advisers to discuss Bitcoin ETFs inside a controlled, regulated structure. ^[29]

Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, is quoted as saying that a modest 1–4% digital‑asset allocation may be appropriate for investors comfortable with higher volatility, with an emphasis on regulated ETFs, not direct token trading. ^[30]

Implications for BAC stock:

• Strategically, this positions Bank of America alongside peers like Morgan Stanley and BlackRock that already offer structured crypto exposure, potentially making the bank more attractive to younger and more digitally‑oriented clients. ^[31]
• It’s also another example of BAC leaning into fee‑based wealth management—a key pillar of Moynihan’s growth strategy and a smoother earnings stream than pure lending. TS2 Tech+1

Buffett is still in—but he’s been selling Bank of America

Warren Buffett’s Berkshire Hathaway remains one of Bank of America’s largest shareholders, but a series of filings and recent articles show that Buffett has been steadily trimming his BAC stake.

• A November analysis from The Motley Fool, published via Nasdaq, notes that Berkshire sold 427.6 million shares of BAC between July 2024 and June 2025, roughly 41% of its position, while reallocating capital into a high‑growth cyclical stock. ^[32]
• MarketBeat’s BAC news feed highlights another Motley Fool piece from December 1 titled “Billionaire Warren Buffett Sold 45% of Berkshire’s Stake in Bank of America and Piled Into a Virtual Monopoly”, suggesting further reductions since mid‑2025. ^[33]
• A December 1 article on AInvest describes a “strategic shift” from Bank of America and Apple toward Alphabet, noting a 6% reduction in BAC holdings during Q3 2025 as Berkshire made a roughly $4.9 billion investment in Alphabet. ^[34]

Importantly, Bank of America still ranks among Buffett’s largest holdings, alongside Apple and American Express, according to recent portfolio round‑ups from Investopedia and other outlets. ^[35]

How should investors interpret this?

• The selling appears driven partly by valuation and tax considerations, and partly by Buffett’s desire to rebalance toward opportunities he sees as better risk/reward—particularly in AI‑linked tech. ^[36]
• It does not amount to a vote of no confidence; Berkshire still holds a very large BAC position, but the psychological impact of the “Oracle of Omaha” selling shares is real and is often cited as a counterweight to the bullish analyst narrative.

Analyst ratings, price targets and technical setup

Street views and valuation

The consensus view on Wall Street remains moderately bullish:

• Consensus rating: “Moderate Buy” from 28 brokerages, with 23 Buy and 5 Hold ratings, according to MarketBeat and American Banking News updates published December 2. ^[37]
• Average 12‑month price target: about $57.77, implying high single‑digit upside from the low‑$50s. ^[38]
• Several firms have increased their BAC targets in recent months:
  • Seaport to $66 (Buy)
  • Citigroup to $62 (Buy)
  • JPMorgan to $58 (Overweight) ^[39]
• On December 2, Barclays analyst Jason Goldberg reiterated a Buy rating with a $59 target, and highlighted Bank of America as one of the best dividend stocks in the financial sector. ^[40]

Taken together, the Street mostly sees modest upside from today’s levels, with the risk/reward profile shifting from “deep value” to “quality compounder at a fair price.”

Technical picture: setup for a potential breakout

A new ChartMill technical note dated December 2 flags BAC as a candidate for a breakout trade: ^[41]

• Technical Rating: 7/10, indicating a solid uptrend with the stock outperforming roughly three‑quarters of the market over the past year and about 80% of peers in the banking sector.
• Setup Rating: 9/10, reflecting a tight consolidation with lower volatility—often the kind of pattern traders watch for a continuation move higher.
• The analysis notes:
  • BAC trades above its 50‑, 100‑ and 200‑day moving averages, all sloping upward.
  • The stock sits close to its 52‑week high, in line with a strong broader market.
  • Support is identified around $50–$53, with resistance just above current prices (around the mid‑$54s), and a breakout above that zone is seen as a potential trigger for trend‑followers.

ChartMill explicitly reminds readers that a trend and setup are not a guarantee, and that any breakout scenario carries the usual trading risks; their piece is informational, not personalized advice—a caveat that applies equally here. ^[42]

Dividends, stress tests and capital strength

Dividend profile

Bank of America continues to position itself as both a growth and income story:

• The board has authorized a quarterly common dividend of $0.28 per share, an 8% increase implemented after the 2025 Federal Reserve stress tests. ^[43]
• At recent prices around the mid‑$53s, that translates to an annualized dividend of $1.12 and a yield of roughly 2.1%. ^[44]
• Simply Wall St and other dividend‑focused outlets point out that BAC’s payout ratio sits under 30% of earnings, leaving room for potential increases if profit growth holds up. ^[45]
• The stock is set to trade ex‑dividend in early December, with the next payment scheduled for late December 2025 (December 26 in recent announcements). ^[46]

Stress tests and capital

On July 1, 2025, Bank of America announced it had passed the Federal Reserve’s 2025 stress tests with improved resilience: ^[47]

• Modeled capital depletion improved by 100 basis points to 170 bps, according to the Fed’s severely adverse scenario.
• BAC’s Stress Capital Buffer (SCB) is set to fall to 2.5%, lowering its CET1 minimum requirement to 10.0% as of October 1, 2025, with a potential 2.7% SCB (10.2% CET1 minimum) under proposed rule changes for 2026. ^[48]
• As of March 31, 2025, the bank reported a CET1 ratio of 11.8%, comfortably above regulatory minimums. ^[49]

Separately, coverage of the Financial Stability Board’s 2025 list of global systemically important banks (G‑SIBs) notes that Bank of America has been moved into bucket 3, requiring a 2% additional capital buffer—a sign of both its scale and systemic importance. TS2 Tech

In short, capital and dividend capacity are supportive of the current payout and buyback plans, though regulators are keeping large U.S. banks on a relatively tight leash.

Institutional flows and shareholder base

Recent 13F‑related headlines show a busy institutional tape:

• MarketBeat tallies that about 70–71% of Bank of America’s shares are held by institutional investors, including asset managers such as OMERS, Mackenzie Financial, Fisher Asset Management and numerous hedge funds. ^[50]
• Over the past few days, filings show both buyers and sellers:
  • OMERS Administration Corp and other managers added to positions.
  • Some firms, such as Portfolio Design Labs LLC and several smaller managers, trimmed holdings. ^[51]

The mixed but active institutional flow reinforces the idea that BAC remains a core big‑cap financial holding, rather than a speculative fringe name.

Key risks investors are watching into 2026

Even with strong earnings and upbeat forecasts, several risks and unknowns hang over the Bank of America stock outlook:

1. Interest‑rate path and NII pressure
   • BofA’s own economists expect only gradual Fed cuts, but a faster‑than‑expected easing cycle could compress net interest margins and make the 5–7% NII growth target harder to hit. ^[52]
2. Regulation and capital requirements
   • BAC’s higher G‑SIB bucket and evolving SCB rules mean the bank must hold more high‑quality capital, which can weigh on returns if growth slows. TS2 Tech+2Bank of America+2
3. Credit cycle and macro shocks
   • The baseline forecast calls for a “soft landing” and manageable credit losses, but a sharp downturn, geopolitical shock, or inflation resurgence could quickly change that picture. ^[53]
4. Execution on strategy
   • Hitting a 16–18% ROTCE and higher market share in investment banking and trading will require flawless execution in a competitive landscape where peers like JPMorgan and Goldman Sachs are also stepping up their game. ^[54]
5. New initiatives (AI and crypto)
   • Big bets on AI, digital platforms and crypto distribution could strengthen BAC’s franchise—or they could prove more expensive and slower‑paying than management hopes, especially if regulation tightens. TS2 Tech+2Parameter+2

Bottom line: how Bank of America stock looks after today’s news

Putting it all together, the December 2, 2025 picture for Bank of America stock looks like this:

Supportive factors

• Strong earnings momentum with double‑digit EPS and revenue growth and record net interest income. ^[55]
• Higher return and growth targets (ROTCE 16–18%, NII +5–7%) and a clear, tech‑heavy strategy laid out at Investor Day. ^[56]
• A solid dividend profile (about 2.1% yield, sub‑30% payout) with room for growth under current stress‑test capital requirements. ^[57]
• New crypto and retirement‑income initiatives that could broaden fee‑based revenue, particularly among wealth clients. ^[58]
• Analyst consensus of “Moderate Buy”, high single‑digit upside on average price targets, and a constructive technical setup near 52‑week highs. ^[59]

Headwinds and cautions

• The stock has already enjoyed a strong 2025 rally, so expectations are higher and near‑term upside is seen as moderate rather than explosive. TS2 Tech+1
• Buffett’s sustained selling—even if driven largely by tax and portfolio‑balance reasons—reminds investors that valuation is no longer a one‑way bet. ^[60]
• BofA’s own macro team is calling for limited index‑level equity returns in 2026, which may cap multiple expansion across the sector. ^[61]
• Regulatory and credit risks remain, as they do for any globally systemic bank. ^[62]

For readers, the upshot is that Bank of America stock now trades like a large, high‑quality financial franchise priced roughly at a “reasonable” level, not a distressed turnaround. Whether BAC fits in your portfolio depends on your risk tolerance, time horizon, and view on interest rates and U.S. growth.

This article is informational only and does not constitute investment advice. Before buying or selling any security, consider speaking with a licensed financial adviser and reviewing the latest filings and company materials yourself.

References

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