Berkshire Hathaway sells more than $862 million in Bank of America stock by Investing.com

In a recent series of transactions, Berkshire Hathaway Inc . (NYSE: ), the conglomerate led by renowned investor Warren E. Buffett, has sold a significant portion of its stake in Bank of America Corp. (NYSE:NYSE:). The sales, which took place over three days, saw a total of $862,670,637 of the banking giant’s shares sold.

Trading began on September 20, 2024, when Berkshire Hathaway sold 10,247,961 shares at an average price of $40.3633 per share. This was followed by the sale of 4,941,403 shares on September 23 at an average price of $39.9444 and a final sale of 6,371,845 shares on September 24 at an average price of $39.4937. The prices for the shares sold ranged from $39.4937 to $40.3633 in different transactions.

After these sales, Berkshire Hathaway’s remaining stake in Bank of America consists of 814,347,226 shares. It is important to note that the shares sold were held by various subsidiaries of Berkshire Hathaway, as outlined in the footnotes of the SEC filing.

These subsidiaries include a wide range of insurance and financial companies under the Berkshire umbrella, such as Government Employees Insurance Company (GEICO) and National Indemnity Company, among others. The nature of ownership is indicated as indirect, and Warren E. Buffett, as the majority shareholder of Berkshire Hathaway, is deemed to beneficially own the shares.

The SEC filing includes an undertaking by the reporting persons to provide complete information regarding the number of shares sold at each separate price in the ranges noted upon request by Bank of America, any security holder of Bank of America or the staff of the Securities and Exchange Commission.

The reported transactions were signed by Warren E. Buffett himself, representing both his personal holdings and those of the other reporting persons under Berkshire Hathaway Inc.

In other recent news, Bank of America named David Dowd as its new Asheville market president, underscoring the company’s focus on leadership that can support local economies. Dowd’s role will include growing the bank’s market share and deepening customer relationships in the region. In other developments, a decision by the Federal Reserve to cut interest rates was welcomed by the banking sector, including Bank of America, as it is expected to ease the financial burden on borrowers and reduce deposit costs for banks.

Berkshire Hathaway, led by Warren Buffett, sold a significant portion of its stake in Bank of America, netting about $7 billion as of mid-July, but still remains the bank’s largest shareholder. Analysts at Piper Sandler maintained a neutral rating on the bank’s stock, while Deutsche Bank upgraded the bank’s stock from Hold to Buy, citing the potential for earnings growth.

These recent developments reflect ongoing changes in Bank of America’s leadership, shareholder composition and the broader financial environment.

InvestingPro Insights

Bank of America Corp. (NYSE:BAC) continues to navigate the financial landscape with a mix of stability and strategic moves. A key aspect from InvestingPro’s perspective is the company’s commendable track record of increasing dividends for 10 consecutive years, signaling a commitment to returning value to shareholders. This is also underlined by the fact that Bank of America has maintained dividend payments for over half a century, a testament to its financial strength and prudent management.

InvestingPro data shows a market cap of $306.58 billion with a price-to-earnings (P/E) ratio of 13.76. This figure is even more attractive when considering the adjusted P/E ratio for the trailing twelve months through Q2 2024, which stands at 11.79, indicating potential undervaluation relative to earnings. Moreover, the price-to-book (P/B) ratio over the same period is at a modest 1.15, suggesting that the stock may be trading at a price close to net asset value.

While Bank of America saw a slight revenue decline of 1.75% for the trailing twelve months through Q2 2024, InvestingPro Tips points out that analysts predict the company will remain profitable this year, having already been profitable for the trailing twelve months. This is a crucial consideration for investors looking for stability and growth in the banking industry, where Bank of America is a prominent player.

For those interested in additional information and advice, InvestingPro offers additional guidance on Bank of America, with a total of 6 InvestingPro Tips available at https://www.investing.com/pro/BAC. These tips provide deeper analysis that could help investors make more informed decisions.

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