Chart of the Day: Bank of America Is a Name We Can 'BAC'
A huge buyback authorization this week will serve shareholders well.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
We are taking another look here at Bank of America BAC following news today of a new buyback authorization ($40 billion to replace the current one, which has $9 billion left). These buybacks of stock for BAC have been extremely bullish in the past as retiring stock means earnings per share will be much stronger — a boon to shareholders.
It is a bit surprising to see this happening near multi-year highs, but remember this is just an authorization to buy at anytime, which will likely buoy the stock nicely over time. With reduced regulations coming for the banking industry this latest move can be considered strongly bullish.
The chart of BAC remains strong and could make its way even higher off this latest news. Stochastics, as seen in pane 4, are really starting to move upward while money flows, as seen in the bottom pane, are bullish as well. Importantly, the Moving Average Convergence Divergence is about to cross or a big buy signal, that will bring in more buyers as well.
We remain bullish on Bank of America in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
The Pro Portfolio is long BAC.
