Bank of America (BAC) Stock Falls on Day of Annual Investor Meeting

NEW YORK (TheStreet) -- Bank of America (BAC) shares are down 1.16% to $16.16 in trading on Wednesday after the bank's lead independent director said that the company's shareholders should have a say in a rule that allowed CEO Brian Moynihan to become chairman.

The bank originally amended company bylaws that required an independent chairman in October. Earlier this week the bank said that it will allow shareholders to vote on the rule change by next year's shareholder meeting.

Shareholder voted in favor of the company's executive compensation, board nominations and opposition to shareholder proposals, according to Reuters, though Bank of America did not release the official tally showing the breakdown of the votes. The company said that it would release the official numbers within four days.

Lead independent director Jack Bovender believes that shareholders should have a say in whether they like the idea of the chairman of the board also holding an executive position. 

TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 1316.3% when compared to the same quarter one year prior, rising from -$276.00 million to $3,357.00 million.
  • The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 86.18%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.15% is above that of the industry average.
  • BANK OF AMERICA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF AMERICA CORP reported lower earnings of $0.35 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($1.33 versus $0.35).
  • BAC, with its decline in revenue, slightly underperformed the industry average of 0.9%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • You can view the full analysis from the report here: BAC Ratings Report
Must Read: Warren Buffett's Top 25 Stocks for 2015

More from Markets

P&G, GE and IBM Need to Innovate; Has Starbucks' Stock Grown Ice Cold?--ICYMI

P&G, GE and IBM Need to Innovate; Has Starbucks' Stock Grown Ice Cold?--ICYMI

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Video: The S&P 500 Is Failing to Make New Highs

Video: The S&P 500 Is Failing to Make New Highs

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump