Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) continues to sell shares of banking giant Bank of America (BAC). According to a Form 4 filing dated September 10, Berkshire sold roughly 5.8 million BAC shares, worth $228.65 million between September 6 and September 10. The filing shows that Berkshire sold the shares at average prices ranging between $39.2978 and $39.6682 apiece.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Berkshire Continues to Offload BAC Shares
The latest share sale brings down Berkshire’s stake in BAC to 11.1%. As of June 30, 2024, Bank of America was the second-largest holding in Berkshire’s portfolio. It is worth noting, that even after the latest sale, Berkshire still holds 759.89 million of BAC’s shares, valued at $33.5 billion based on yesterday’s closing price.
The Oracle of Omaha has remained silent about the series of share sales of BAC stock. There are speculations that Buffett is steadily reducing his exposure to the finance sector owing to the uncertain macro background.
Insider Signal for BAC Stock
This is Berkshire’s eighth major Informative share sale since mid-July of this year. Buffett has undertaken much bigger share sales of BAC stock during this time.
Notably, Bank of America stock currently has a Very Negative Insider Confidence Signal on TipRanks. BAC saw a massive $7.2 billion worth of Informative Sell transactions in the last three months. One of the largest contributors to the share sale has been Berkshire Hathaway.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What Is the Price Target for BAC Stock?
Wall Street remains divided on Bank of America stock due to recessionary fears and interest rate challenges. On TipRanks, the average Bank of America price target of $45.41 implies 15.6% upside potential from current levels. Also, BAC stock has a Moderate Buy consensus rating based on 12 Buys versus six Hold recommendations. Meanwhile, BAC shares have gained nearly 19% so far this year.
