Warren Buffett’s Berkshire Hathaway has made headlines once again by offloading more shares in Bank of America (BAC), netting an impressive $9 billion since July. This latest move involved the sale of approximately 22 million shares between September 20 and 24 for around $863 million. Earlier this month, the conglomerate had already sold around 45.6 million shares, bringing its total sale in September to over $1.7 billion. Despite these sales, Berkshire remains Bank of America’s largest shareholder, now holding a 10.5% stake valued at $32.13 billion, according to LSEG data.
CEO Weighs in on Buffett’s Influence
In light of these changes, Bank of America CEO Brian Moynihan recently praised Buffett, describing him as a “great investor” who has “stabilized” the company. At a financial conference, he admitted, “I don’t know what exactly he is doing because, frankly, we can’t ask.” Buffett’s faith in Bank of America dates back to 2011 when he invested $5 billion in preferred stock during the company’s recovery from the 2008 financial crisis.
Is Bank of America a Buy, Sell or Hold?
While BofA’s shares dipped slightly in premarket trading, they have risen about 17% this year, outperforming the S&P 500 Banks Index, which is up nearly 19%. Overall, the street is cautiously optimistic on BAC stock based on 12 Buys and six Holds. The average BAC price target of $45.41 implies an upside potential of 15.11% from current levels.
