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?
-
Dow Hits New High Ahead of January Jobs Report: Stock Market TodayA weak reading on December retail sales was in focus ahead of Wednesday's delayed labor market data.
-
7 Bad Tax Habits to Kick Right NowTax Tips Ditch these seven common habits to sidestep IRS red flags for a smoother, faster 2026 income tax filing.
-
The New Plan to End Surprise Taxes on Social Security 'Back Pay'Social Security Taxes on Social Security benefits are stirring debate again, as recent changes could affect how some retirees file their returns this tax season.
-
Dow Hits New High Ahead of January Jobs Report: Stock Market Today
A weak reading on December retail sales was in focus ahead of Wednesday's delayed labor market data.
-
The Best Weekly Income ETFs to Buy in 2026Weekly income ETFs are among the yield-based products that fund issuers are rolling out, but complexity and fees still matter.
-
Tied Up in Knots Over a Concentrated Stock Position? This Strategy Will Help You UnravelIf you've built significant wealth through stock in one company, deciding your next move may be petrifying. Use this decision-making framework to get unstuck.
-
How to Put Your IRA to Work for Change and to Help the Next Generation, Courtesy of an Investment AdviserUnhappy with the environmental and social impact of your investments? An impact fund that aligns your portfolio with your values could make all the difference.
-
A Wake-Up Call and a Healthy Dose of Terror: How to Survive Your First Days in PrisonThis young man needed to be scared straight after his mother expressed her fear that he was on a path to prison. Hearing these eight do's and don'ts worked.
-
Tech Stocks Fuel Strong Start to the Week: Stock Market TodayThe blue-chip Dow Jones Industrial Average extended its run above 50,000 on Monday and there are plenty of catalysts to keep the 30-stock index climbing.
-
I'm a Financial Adviser: Here's How to Help Derisk Your Portfolio in 2026Signs of a possible economic slowdown call for balanced derisking that locks in portfolio gains without sacrificing future upside. Here's a step-by-step guide.
-
Why the Next Fed Chair Decision May Be the Most Consequential in DecadesKevin Warsh, Trump's Federal Reserve chair nominee, faces a delicate balancing act, both political and economic.
