Legendary investor Warren Buffett-led Berkshire Hathaway BRK BRK has further reduced its stake in Bank of America Corp BAC, selling shares worth $338 million, as per a recent U.S. Securities and Exchange Commission filing.
What Happened: This marks the 13th round of sales since mid-July, with shares sold at an average price of $39.40, one of the lowest prices received since the selling began.
Despite these sales, Berkshire Hathaway remains the largest shareholder, holding 10.2% of the bank’s stock, valued at over $31 billion.
The pace of Berkshire’s sales has slowed, with recent transactions averaging $338 million, compared to previous rounds of about $750 million. The reasons for the sales remain undisclosed.
Why It Matters: Bank of America CEO Brian Moynihan has praised Buffett as an investor but admitted uncertainty about the reasons behind the share reduction, stating, “I don't know what exactly he is doing because frankly we can't ask.”
Buffett’s recent actions have raised eyebrows, given his reputation for a long-term, patient investment approach. His decision to sell a significant portion of one of his favorite stocks, Bank of America, has sparked speculation about potential strategic shifts or market concerns.
Price Action: Bank of America Corp’s stock closed at $39.23 on Wednesday, up 0.025% for the day. Year to date, the stock has surged 15.72%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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