In the latest episode of Warren Buffett’s ongoing selling streak involving Bank of America (NYSE: BAC) stocks, the renowned investor and Berkshire Hathaway’s CEO has executed another substantial divestment through his company. This move saw the sale of millions of BAC shares, with the most recent transaction nearing 22 million shares.
To be precise, Buffett’s recent sale of BAC stocks, valued at around $863 million, occurred between September 20 and September 24. This selling activity pushed the total value of Bank of America shares offloaded by Berkshire Hathaway to $9 billion, based on data from TipRanks as of September 25.
Just a week before this, the ‘Oracle of Omaha’ had also sold 22.3 million BAC stocks, pocketing $896 million in profit. Prior to that, his company disposed of approximately 5.8 million Bank of America shares amounting to $228.65 million between September 6 and September 10, as reported by Finbold on September 12.
Berkshire Hathaway, the largest shareholder of Bank of America, initiated its BAC stock selling spree back in mid-July this year. Since then, the company has sold a total of $9 billion across multiple trading sessions, resulting in the reduction of its stake in Bank of America to 10.5%.
Despite Buffett not offering any explicit reasons for these divestments, Haruki Toyama, the portfolio manager at Madison Investments, views it as not necessarily indicative of a bearish market stance. Toyama highlighted that Buffett’s historical commentary on market valuation extremes has been absent recently, indicating a neutral stance.
Bank of America’s CEO, Brian Moynihan, praised Buffett as a great investor who had stabilized the company but expressed uncertainty over the rationale behind reducing exposure to the stock. The market continues to absorb Bank of America stock, with Berkshire Hathaway contributing to the transaction volume.
The stock price of Bank of America currently stands at $39.13 per share, with a slight decline of 0.24% on the day and decreases of 3.53% over the past week, 1.97% during the month, and the year-to-date growth down to 15.25%, according to the latest data.
Buffett’s significant divestment in Bank of America reflects a broader trend of him withdrawing from the U.S. banking sector, adding to his previous exits from positions in Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC), U.S. Bancorp (NYSE: USB), and Bank of New York Mellon (NYSE: BK).
The article “Warren Buffett just dumped $860 million of this stock” was originally posted on Finbold.