Bank of America (BAC) has revised some of its diversity, equity, and inclusion (DEI) initiatives in response to the changing legal scenario under the Trump administration. In its latest annual filing, the bank dropped references to its diversity hiring goals and the need for human resource managers to consider a diverse pool of candidates for job openings. Further, BAC has used terms like “talent” and “opportunity” in place of “diversity” in the report.
Instead, the annual report now reflects a focus on creating an “inclusive environment.” Separately, the bank stated that it regularly reviews and adjusts these programs based on new laws, court decisions, and executive orders from the government.
This change is part of a larger trend among Wall Street firms, such as Citigroup (C) and Goldman Sachs (GS), which have recently scaled back DEI initiatives due to rising political and legal pressures. Specifically, Trump’s executive order bans diversity efforts for federal contractors, which includes banks like Bank of America and Citigroup.
Berkshire’s Silence on BAC Holding Raises Questions
On another note, Warren Buffett’s Berkshire Hathaway (BRK.B) recently released its 10-K filing, and surprisingly, it did not mention its holdings in Bank of America stock. This omission has raised eyebrows among investors and analysts, as Berkshire has been a significant shareholder in BAC for several years.
The decision to exclude BAC from the 10-K filing could be due to various reasons, such as a shift in Berkshire’s investment strategy or a lack of confidence in BAC’s future performance. It must be noted that Berkshire has not disclosed the specific reason behind this exclusion.
The change might affect investor opinion about BAC stock as Berkshire’s investment decisions are closely watched, and could lead some investors to reassess their positions in BAC.
What Is the Price Target for BAC Stock?
Turning to Wall Street, BAC stock has a Strong Buy consensus rating based on 17 Buys and two Holds assigned in the last three months. At $53.03, the average Bank of America stock price target implies 20.69% upside potential.
