Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has been actively selling shares of Bank of America (BAC). This week, the investment firm offloaded an additional $760 million worth of BAC stock. With this latest transaction, the company has sold a total of about $7 billion worth of Bank of America stock since mid-July.
Despite these substantial disposals, Berkshire remains BAC’s largest shareholder, with a stake of nearly 11%, valued at $34.7 billion based on Thursday’s closing price.
It is worth mentioning that if Berkshire continues to reduce its stake in BAC, its stake could soon dip below the 10% regulatory threshold. This would permit the company to delay reporting transactions for several weeks, offering greater flexibility in its investment strategy.
Hedge Funds Are Bearish on BAC
Just like Buffett’s Berkshire, hedge fund managers don’t seem confident in BAC stock. Indeed, hedge funds decreased their holdings in the stock by 11 million shares in the past three months. As a result, they have a Negative confidence signal, as indicated by the graphic below.
Is BAC a Good Buy Right Now?
On TipRanks, BAC has a Moderate Buy consensus rating. This is based on 12 Buy and six Hold recommendations. Analysts’ average price target on Bank of America stock of $45.41 implies a 13.13% upside potential from current levels. The stock gained 14.03% in the past six months.
