Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has been steadily offloading Bank of America shares, with recent sales totaling nearly 6 million BAC shares. These transactions, valued at $228.65 million, occurred between September 6 and September 10, with prices ranging from $39.30 to $39.67 per share. Since mid-July, Buffett has been reducing his stake in Bank of America, selling over $7 billion worth of shares in various trades. This has decreased Berkshire’s ownership to 11.1%, holding approximately 760 million BAC shares valued at $33.5 billion.
While Buffett has not provided specific reasons for his divestment, there are speculations that he might be decreasing exposure to the finance sector due to macroeconomic uncertainties. Despite Buffett’s actions, Wall Street analysts maintain a positive outlook on Bank of America shares, with an average 12-month forecast of $45.41. This forecast indicates a potential 16.56% increase from the current price, with targets ranging from $39 to $52.
The price analysis shows that BAC stock traded at $38.96 in the pre-market, reflecting daily fluctuations while accumulating a year-to-date gain of 14.91%. Buffett’s recent Bank of America sales align with his trend of pulling back from U.S. banking institutions, having previously sold positions in other major banks like Goldman Sachs, JPMorgan, Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.
Please note that this information should not be considered investment advice as investing involves risk.