Warren Buffett Sells $230 Million in BAC Shares – What It Means for Bank of America
Warren Buffett's Latest Move with Bank of America (BAC)
Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has recently dumped $230 million in Bank of America (NYSE: BAC) shares, reflecting ongoing shifts in his investment strategy.
Details of the Sale
- Berkshire Hathaway sold approximately 5.8 million BAC shares.
- The value of the shares sold totaled about $228.65 million.
- The sales occurred between September 6 and September 10.
Buffett's sell-off, which follows a significant reduction in his BAC holdings since mid-July, is part of an extensive pattern whereby he has unloaded over $7 billion worth of BAC stock. Currently, Berkshire retains an 11.1% stake in the company, equivalent to nearly 760 million shares valued at $33.5 billion.
Analysts Respond to Buffett's Moves
Despite Buffett's recent sales and potential bearish sentiment regarding BAC, analysts remain skeptical but optimistic. Brian Moynihan, CEO of BofA, stated that the market is continuously absorbing the stock.
- Wall Street analysts rate BAC as a 'moderate buy'.
- The average 12-month price target is set at $45.41, indicating a potential rise of 16.56% from current levels.
Implications for Investors
The pattern of Buffett withdrawing from the banking sector aligns with similar past actions where he reduced stakes in various banks. Investors keenly observe how these trends may affect BAC's future performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.