How to Trade Bank of America Shares After Q1 Performance

April 24, 2023 11:16

Since the demise of Silicon Valley Bank and Signature Bank last month, investors have eagerly anticipated the latest earnings report and commentary from the biggest banks in the US to see if there has been a much bigger fallout. 

Learn more about the latest earnings performance from the second-largest bank by assets in the US – Bank of America – below, as well as what analysts are forecasting for the stock.

Stock: Bank of America
Symbol for Invest.MT5 Account: BAC
Date of Idea: 24 April 2023
Time Line: 1 - 6 months
Entry Level: $31.00
Target Level: $47.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Bank of America Q1 2023 Performance Breakdown

Here are some of the key highlights from the latest fiscal first-quarter earnings report from Bank of America: 

  • Earnings per share of 94 cents vs 82 cents expected 
  • Revenue of $26.39 billion vs $25.13 billion expected 
  • Net income increase of 15% to $8.2 billion 
  • Quarterly revenue rose 13% from a year earlier 
  • Net interest income up 25% from the same time last year to $14.4 billion 
  • Sales and trading revenue up 7% to $5.1 billion 
  • Equities trading revenue was down 19% to $1.6 billion 
  • $931 million set aside for credit losses 

On the face of it, Bank of America beat analyst estimates on earnings and revenue. Its net interest income jumped 25% to $14.4 billion largely down to higher interest rates. This is effectively the income the bank makes from the difference between lending money out to what it pays to customers.  

According to CEO Brian Moynihan, every business segment performed well while they also managed to strengthen their balance sheet and deliver seven straight quarters of operating leverage. However, while revenue grew in its sales and trading, fixed income, currency and commodity divisions, equity trading revenue fell.  

From a statistical standpoint, Bank of America has performed well. One concern is the fact that most of the performance came from the benefit of higher interest rates. With the Federal Reserve slowing the pace of rate hikes and some analysts forecasting a cut by the end of the year, it is likely to affect the bank’s earnings and revenue this year.  

Therefore, the global macroeconomic environment and interest rate policy of central banks will have an important influence on banks’ share prices moving forward. The uncertainty around future interest rate policy is why some analysts have different ratings on the stock.

Bank of America Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Bank of America stock forecast in the past 3 months, there are currently 8 buy, 7 hold and 1 sell ratings on the stock. The highest price level for a Bank of America stock forecast is $47.00 with the lowest price target at $29.00. 

The average price target for a Bank of America stock forecast is $36.21.

Source: TipRanks, 24 April 2023


An Example Trading Idea for the Bank of America Stock Price

An example trading idea for the Bank of America share price could be as follows:  

  • Buy the stock on a break above $31.00 to allow for current volatility. 
  • Target just below the highest analyst price target of $47.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Bank of America shares:  
    • If target is reached = $160.00 potential profit ($47.00 - $31.00 * 10 shares).

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the stock is currently down for the year.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Bank of America stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Bank of America Stock in 4 Steps  

With Admirals, you can buy shares in companies like Bank of America with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Source: Admirals MetaTrader 5. Bank of America. Monthly. Date: 1 Jun 1999 to 24 Apr 2023, captured on 24 Apr 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Bank of America stock today! ▼▼▼ 

Do You See the Bank of America Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Bank of America's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.