December 20, 2025 — Bank of America Corporation (NYSE: BAC) is closing out the year with its stock near a 52-week high, supported by a late-2025 tailwind from improving capital markets activity and fresh signals from management about fourth-quarter momentum. With U.S. markets closed for the weekend, investors are now looking ahead to the bank’s next earnings report and what the Federal Reserve’s latest rate cut could mean for 2026 profitability.
Below is a comprehensive roundup of the latest BAC stock news, forecasts, and analyst views as of Dec. 20, 2025.
BAC stock price today: Where Bank of America shares stand on Dec. 20, 2025
Bank of America shares last closed at $55.27 after Friday’s session (Dec. 19), as the stock moved higher alongside a strong day for U.S. equities. [1]
As of Dec. 20, BAC is trading near the top of its 52-week range. Data tracked by Investing.com lists a 52-week low near $33.07 and a 52-week high near $56.07, underscoring how close the stock is to its recent peak. [2]
What’s driving Bank of America stock heading into year-end
1) The Fed just cut rates again — and the path from here matters for banks
On Dec. 10, 2025, the U.S. Federal Reserve lowered the federal funds target range by 25 basis points to 3.50%–3.75%. The Fed also said it would initiate purchases of shorter-term Treasury securities as needed to maintain ample reserves—language investors watched closely for what it suggests about liquidity and money markets conditions. [3]
Reuters reporting around the decision highlighted a fractious vote and a more cautious tone about future moves, reinforcing that “higher-for-longer vs. faster cuts” uncertainty is still very much in play. [4]
Why this matters for BAC: a lower policy rate can be a mixed bag for big banks. It can support loan demand and potentially reduce borrower stress, but it can also pressure net interest income (NII) if deposit pricing doesn’t fall as quickly as asset yields.
2) Management is signaling a stronger Q4 for markets revenue — and more buybacks
At a Goldman Sachs financial services conference earlier this month, CEO Brian Moynihan said Bank of America expects markets revenue to rise by a high single-digit percentage up to around 10% in Q4 2025, while investment banking fees are expected to be broadly flat. He also said the bank expects to buy back more stock in Q4. [5]
This guidance matters because it points to a potentially favorable mix shift: if the trading/markets segment is accelerating, it can help offset pressure elsewhere—especially if rate cuts weigh on core spread income.
3) Deal activity is influencing sentiment — and even compensation headlines
Reuters reported that Bank of America is poised to increase bonuses for its best-performing investment bankers after a surge in deal activity this year, with top dealmakers potentially seeing around a 20% increase. The report also noted BofA’s ambitions to grow its share of investment banking fees over the next several years. [6]
In equity markets, compensation stories aren’t the “why” by themselves—but they often act as a signal: stronger deal flow tends to lift advisory pipelines and can support fee-driven earnings.
Q4 earnings preview: What Wall Street expects from BAC next
Bank of America’s investor relations site lists the next quarterly earnings release for Wednesday, January 14, 2026. [7]
Ahead of the report, an earnings preview published Dec. 19 pointed to expectations for double-digit year-over-year profit growth in the quarter. That same preview cited a consensus view for Q4 EPS of about $0.96, versus $0.82 a year earlier, and projected FY2025 EPS of $3.81, rising to $4.34 in FY2026. [8]
Investors will likely focus on three areas:
- Net interest income and deposit costs: Are funding costs easing fast enough as rates come down?
- Markets and wealth: Does the bank deliver on management’s expectations for stronger markets revenue?
- Capital return: How aggressively does BAC buy back shares into year-end, and what does that imply for 2026 EPS support?
For context, Bank of America’s latest reported quarter (Q3 2025) showed $28.1B in revenue (net of interest expense), $8.5B net income, $1.06 EPS, and 15.4% return on tangible common equity. [9]
Dividends and buybacks: BAC’s shareholder-return story remains a pillar
Dividend: Next payment is coming right after Christmas
Bank of America declared a regular quarterly common dividend of $0.28 per share, payable Dec. 26, 2025, to shareholders of record as of Dec. 5, 2025. [10]
Buybacks: $40 billion authorization is already in place
Earlier in 2025, Bank of America’s board authorized a new $40 billion common stock repurchase program, effective Aug. 1, 2025, replacing the prior program. [11]
And as noted above, management has signaled it expects to step up repurchases in Q4, a potentially meaningful support for per-share earnings and valuation—especially if market volatility gives the bank attractive entry points. [12]
Analyst forecasts for Bank of America stock: Price targets and ratings
Wall Street’s consensus view remains constructive.
Investing.com’s compilation of recent analyst ratings shows an overall consensus of “Buy”, with 21 Buy, 4 Hold, and 0 Sell ratings captured in its poll data. The average 12-month price target is $59.65, implying roughly ~8% upside from around $55.27. The listed target range spans from $51 (low) to $68 (high). [13]
Among the more recently logged actions in that dataset:
- Morgan Stanley: $68 target (maintained Dec. 12, 2025)
- Oppenheimer: $63 target (maintained Dec. 18, 2025)
- Truist: $58 target (maintained Dec. 18, 2025)
- RBC Capital: $59 target (maintained Dec. 12, 2025)
- Piper Sandler: Hold, $56 target (maintained Dec. 11, 2025) [14]
How to interpret this (in plain English): analysts broadly see BAC as fairly valued to modestly undervalued near $55, with upside skewed toward a “soft landing / steady economy” scenario where credit stays stable and fee income remains healthy.
Today’s BAC headlines: Ratings changes and institutional-position updates dated Dec. 20
Because today is a Saturday, the “new” tape is dominated by research/ratings summaries and SEC filing-based institutional ownership stories rather than major market-moving corporate announcements.
Notable items dated Dec. 20, 2025 include:
- A downgrade: MarketBeat reported that Wall Street Zen moved Bank of America from “hold” to “sell” in a Saturday note. [15]
- Institutional position stories based on prior-quarter filings: MarketBeat also highlighted a Q3-position increase by Princeton Global Asset Management and a Q3 reduction by BDF Gestion, both derived from SEC filings. (These are backward-looking snapshots, but they can influence narrative around institutional sentiment.) [16]
- Valuation commentary: Simply Wall St published a valuation-focused piece noting BAC’s strong run toward recent highs, framing it as a moment for investors to re-check valuation assumptions. [17]
A new 2026 debate: Could Bank of America become an activist target?
One of the more interesting recent themes isn’t about quarterly numbers—it’s about strategy and valuation.
A Reuters Breakingviews column argued that Bank of America could become a plausible activist investing target, noting:
- BAC’s shares had trailed several major peers across multiple timeframes (as measured earlier in December),
- the stock was trading at about 1.7x forward tangible book value, at a discount to JPMorgan’s multiple (per the column’s cited data),
- and an activist could focus on questions like capital allocation between business lines—especially where returns differ meaningfully. [18]
The piece also pointed to Bank of America’s newer medium-term 16%–18% ROTCE target as a potential focal point for “push for more” shareholder pressure. [19]
Whether or not activism materializes, the discussion matters because it can influence how investors think about valuation gaps, efficiency targets, and capital return priorities.
Strategic angles investors are watching beyond earnings
Two longer-term initiatives that could matter for BAC’s multiple over time:
- Wealth management growth goals: Reuters reported BofA’s wealth unit is targeting 4%–5% net new asset growth in the medium term and outlined ambitions for fee-generating asset growth and margin expansion. [20]
- Payments as a potential M&A lane: Reuters also reported CEO Moynihan said the company may consider further U.S. payments acquisitions, while not looking to do deals in overseas markets. [21]
Both themes connect to a core investor question: can Bank of America grow more of its revenues from fee-based businesses that are less sensitive to the rate cycle?
What could move BAC stock next: A practical checklist for the week ahead
With BAC near its 52-week high and heading into earnings season, the “next move” is likely to come down to a handful of high-impact signals:
- Rates and the yield curve: If markets price fewer 2026 cuts (or long yields rise), that can change the outlook for NII and bank valuations. The Fed’s latest guidance emphasized uncertainty and data dependence. [22]
- Trading and deal indicators: Any read-through on capital markets activity can reinforce (or challenge) the Q4 markets revenue optimism. [23]
- Earnings setup into Jan. 14: Expectations are already leaning positive on profit growth—so BAC may need to beat and/or guide well to break convincingly above the recent range. [24]
- Capital return commentary: Updates on buybacks can matter as much as near-term EPS—particularly for a mega-cap bank stock. [25]
References
1. www.marketwatch.com, 2. www.investing.com, 3. www.federalreserve.gov, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. investor.bankofamerica.com, 8. www.barchart.com, 9. investor.bankofamerica.com, 10. newsroom.bankofamerica.com, 11. newsroom.bankofamerica.com, 12. www.reuters.com, 13. www.investing.com, 14. www.investing.com, 15. www.marketbeat.com, 16. www.marketbeat.com, 17. simplywall.st, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.federalreserve.gov, 23. www.reuters.com, 24. investor.bankofamerica.com, 25. newsroom.bankofamerica.com
