In a recent move, Warren Buffett, the well-known investor and CEO of Berkshire Hathaway, has continued to divest Bank of America shares, selling nearly 6 million additional BAC shares over the past few days. This adds to the billions already offloaded in earlier transactions. The sale, valued at $228.65 million, took place between September 6 and September 10, with average prices per share ranging from $39.30 to $39.67, as outlined in a regulatory filing from September 10.
Buffett’s shedding of BAC stocks commenced back in mid-July, and with multiple trades, he has now surpassed $7 billion in sales, bringing Berkshire’s stake in Bank of America down to 11.1%. Speculation suggests that Buffett could be adjusting his exposure to the finance sector amidst the uncertain economic landscape. While Buffett has not publicly addressed these substantial stock sales, Brian Moynihan, BofA’s CEO, mentioned that the market is absorbing the stock smoothly.
Despite bearish sentiment from Buffett, Wall Street analysts maintain a positive outlook on Bank of America’s stock price. With 12 ‘buy’ recommendations, it is rated as a ‘moderate buy,’ with an average forecast projecting a 16.56% increase over the next 12 months to $45.41 per share. The lowest target sits at $39 (+0.10%), while the highest target reaches $52 (+33.47%).
Bank of America’s stock price analysis shows a pre-market value of $38.96, a marginal daily increase of 1.27%, a weekly decline of 1.70%, a monthly gain of 1.29%, and a year-to-date increase of 14.91% as of September 12. Buffett’s recent sell-off aligns with his trend of pulling out from the US banking sector, having previously divested from major players like Goldman Sachs, JPMorgan, Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.
The article “Warren Buffett just dumped $230 million in this stock” on Finbold provides detailed insights into Buffett’s ongoing divestment actions. Remember, all investments carry risks and should be approached with caution without considering this as official investment advice.