Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) sold additional shares of Bank of America (BAC) for $981.73 million. According to a regulatory filing, Berkshire sold 24.67 million of BAC stock last week. Even after the series of share sales that Berkshire undertook since mid-July this year, the conglomerate remains the largest shareholder of BAC with 903.8 million shares, worth a massive $35.9 billion as of date.
Berkshire Offloads Additional BAC Shares
Berkshire undertook multiple sales of BAC shares on August 23, 26, and 27, at average prices ranging between $39.7504 and $39.8692 apiece. So far in 2024, Berkshire has reduced the stake in Bank of America by 13% and generated roughly $5.4 billion. BRK is a more than 10% owner of BAC and of the end of June quarter, Bank of America was the second-largest holding in Berkshire’s portfolio.
Interestingly, the reason behind Warren Buffett’s consistent BAC share sale remains unknown as the Oracle of Omaha has kept silent about his pullback from one of America’s largest banks. Buffett has steadily reduced exposure to the financial services sector. A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
A Closer Look at the Insider’s Transactions
This is Berkshire’s fifth major share sale since July. His previous trades included Informative Sell transactions, including those worth $766.96 million reported on July 29, $802.37 million reported on July 24, and $1.48 billion reported on July 19.
Owing to Buffett’s stock selling spree, Bank of America stock currently has a Negative Insider Confidence Signal on TipRanks. The stock saw $5.4 billion worth of Informative Sell transactions in the last three months.
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.
Is Bank of America Stock a Buy?
An uncertain macro backdrop, marred with high interest rates and fears of a recession, has kept banking stocks under pressure. On TipRanks, BAC stock has a Moderate Buy consensus rating based on 11 Buys versus seven Hold ratings. Also, the average Bank of America price target of $45.59 implies 14.9% upside potential from current levels. Meanwhile, BAC shares have gained 19.4% so far this year.
