Bank of America Stock Falls As Warren Buffett Keeps Selling
Bank of America stock is lower Wednesday on news Warren Buffett's Berkshire Hathaway sold another chunk of its stake in the bank. Here's what you need to know.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Bank of America (BAC) stock is trading notably lower Wednesday after regulatory filings revealed that Warren Buffett's holding company, Berkshire Hathaway (BRK.B), sold more of its stake in the banking giant.
In a Securities and Exchange Commission (SEC) filing, Berkshire Hathaway reported the sale of about 5.8 million Bank of America shares, with the selling price ranging between $39.29 and $39.67 per share. The selling started on September 6 and ran through September 10.
All told, Berkshire Hathaway sold about 174.7 million shares of BAC stock over that time frame for about $7.2 billion, bringing its holding down to 858.2 million shares, according to CNBC. This knocks Bank of America down to the third-largest position in the Berkshire Hathaway equity portfolio, with the financial stock now perched behind Apple (AAPL) and American Express (AXP). Prior to the stock sales, Bank of America was Buffett's second-largest holding.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"I don’t know what exactly he's doing, because frankly, we can't ask him," said Bank of America CEO Brian Moynihan after being asked about Warren Buffett's selling during Barclays Global Financial Services Conference, according to CNBC. "But on the other hand, the market's absorbing the stock."
Berkshire has been paring back on its BAC stake in recent months and it halved its position in tech giant Apple (AAPL) in Q2. Buffett touched upon the selling of Apple at the annual Berkshire Hathaway meeting in May, saying he still believes in the economics of the tech giant's business but cut his stake in AAPL for tax purposes.
Is Bank of America stock a buy, sell or hold?
Bank of America has outperformed the broader market on a total return basis (price change plus dividends) so far in 2024, up 19% vs the S&P 500's 16% gain. And Wall Street is bullish on the financial stock.
According to S&P Global Market Intelligence, the average analyst target price for BAC stock is $45.53, representing implied upside of nearly 20% to current levels. Additionally, the consensus recommendation is Buy.
But not everyone has gone all in on the large-cap stock. Financial services firm CFRA Research, for instance, has a Hold rating and $39 price target on BAC stock.
The financial firm has seen "no growth on loans and deposits for the last two quarters," said CFRA Research analyst Kenneth Leon in an August 6 statement. Additionally, "BAC card income declined from late 2023 and we think the American consumer (middle class) is stressed with inflation and living costs."
Leon adds that investment banking will benefit other large banks over Bank of America. The analyst's $39 price target is roughly in line with where BAC is currently trading.
Related Content
- 7 Stocks Warren Buffett Is Buying (and 10 He's Selling)
- Best Blue Chip Stocks: 21 Hedge Fund Top Picks
- All 30 Dow Jones Stocks Ranked: Buy, Sell or Hold?
-
Nasdaq Leads a Rocky Risk-On Rally: Stock Market TodayAnother worrying bout of late-session weakness couldn't take down the main equity indexes on Wednesday.
-
Quiz: Do You Know How to Avoid the "Medigap Trap?"Quiz Test your basic knowledge of the "Medigap Trap" in our quick quiz.
-
5 Top Tax-Efficient Mutual Funds for Smarter InvestingMutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
Nasdaq Leads a Rocky Risk-On Rally: Stock Market Today
Another worrying bout of late-session weakness couldn't take down the main equity indexes on Wednesday.
-
5 Top Tax-Efficient Mutual Funds for Smarter Investing
Mutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
Why Invest In Mutual Funds When ETFs Exist?Exchange-traded funds are cheaper, more tax-efficient and more flexible. But don't put mutual funds out to pasture quite yet.
-
Social Security Break-Even Math Is Helpful, But Don't Let It Dictate When You'll FileYour Social Security break-even age tells you how long you'd need to live for delaying to pay off, but shouldn't be the sole basis for deciding when to claim.
-
I'm an Opportunity Zone Pro: This Is How to Deliver Roth-Like Tax-Free Growth (Without Contribution Limits)Investors who combine Roth IRAs, the gold standard of tax-free savings, with qualified opportunity funds could enjoy decades of tax-free growth.
-
One of the Most Powerful Wealth-Building Moves a Woman Can Make: A Midcareer PivotIf it feels like you can't sustain what you're doing for the next 20 years, it's time for an honest look at what's draining you and what energizes you.
-
Stocks Make More Big Up and Down Moves: Stock Market TodayThe impact of revolutionary technology has replaced world-changing trade policy as the major variable for markets, with mixed results for sectors and stocks.
-
I'm a Wealth Adviser Obsessed With Mahjong: Here Are 8 Ways It Can Teach Us How to Manage Our MoneyThis increasingly popular Chinese game can teach us not only how to help manage our money but also how important it is to connect with other people.
