NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) got a boost in late trades on Tuesday following reports the massive bank is ready to pony up $8.5 billion to settle claims related to mortgage-backed securities that went bad.
The Wall Street Journal and
CNBC were reporting the bank was close to the settlement, which would involve a group of 22 investors that hold a collective $56 billion in mortgage-backed securities.
The stock was last quoted at $11.08, up 2.4%, on volume of 5.52 million, according to Nasdaq.com. The shares hit an after-hours high of $11.24. Based on a regular session close at $10.82, the stock was down nearly 19% so far in 2011, scraping a 52-week low of $10.40 on June 16.
Despite the poor performance of the stock, Wall Street is still slightly bullish on Bank of America with 17 of the 31 analysts covering the shares at either strong buy (9) or buy (8), and the 12-month median price target sitting at $16.Charlotte, N.C.-based Bank of America, the nation's largest bank by asset size, is slated to report its fiscal second-quarter results on July 19. The current average estimate of analysts polled by Thomson Reuters is for earnings of 28 cents a share in the June-ending quarter on revenue of $26.21 billion.