Berkshire Hathaway General Electric (NYSE:GE), led by famed investor Warren Buffett, recently sold a large chunk of its shares in Bank of America Corp (NYSE:NYSE:). The total sales, which took place over several days, amounted to more than $778 million.
The sales series began on July 30, 2024, when Berkshire Hathaway sold 6,524,622 shares at a weighted average price of $41.2656. This sale was followed by the disposal of 50,768 shares at an average price of $41.8395 on the same day. On July 31, the company sold an additional 6,854,372 shares at a weighted average price of $40.6159 and 139,148 shares at $41.258. Finally, on August 1, 5,251,726 shares were sold at an average price of $39.4687 and another 396,197 shares at $40.1522.
These transactions ranged in price from $39.4687 to $41.8395 per share. The sales occurred in multiple transactions at different prices within these ranges. In compliance with regulatory requirements, Berkshire Hathaway has provided full details of the number of shares sold at each individual price upon request.
Following these transactions, Berkshire Hathaway’s holdings in Bank of America were adjusted to reflect the total of the new shares owned by the company and its subsidiaries. These sales were recorded as indirect ownership, as described in the footnotes to the SEC filing, and the nature of the ownership is further detailed in the document.
Warren E. Buffett, as the controlling shareholder of Berkshire Hathaway, may be considered to have a financial interest in these shares, although he disclaims beneficial ownership only to the extent of his financial interest.
Investors and followers of Berkshire Hathaway’s investment moves often scrutinize such transactions for insights into the company’s strategic financial decisions. The Bank of America sale represents a significant change in Berkshire Hathaway’s investment portfolio, which holds a diverse array of investments across different sectors.
In other recent news, Bank of America has seen a series of significant developments. The bank has appointed Drew Slogum as its new market president for Wisconsin, a role that will take on the responsibility of growing the bank’s market share in the region. Additionally, Kevin Bruner has been promoted to head of investment banking for technology, media and telecommunications, a role previously held by Sam Powers.
On the legal front, UBS sued Bank of America for $200 million for failing to meet its compensation obligations related to subprime mortgages. In addition, Bank of America, along with five other major banks, agreed to an $80 million settlement in a New York antitrust case over allegations that it manipulated European government bond prices.
On the digital front, Bank of America’s CashPro app, used by business customers to manage finances, reported a record $500 billion in payments by mid-year, and the total is expected to top $1 trillion by year-end.
These were some of the recent developments surrounding Bank of America, which highlighted changes in the bank’s leadership, legal challenges, and major strides in digital banking.
InvestingPro Insights
Amid the recent selloff of Bank of America shares by Berkshire Hathaway, investors may find the following metrics and InvestingPro tips for Bank of America Corp (NYSE:BAC) particularly useful. According to InvestingPro data, Bank of America has a market cap of $305.88 billion, showing its significant presence in the financial sector. The company has a price-to-earnings ratio of 13.64, reflecting investors’ views of its earnings potential. Additionally, with a trailing-twelve-month price-to-book ratio as of Q2 2024 of 1.15, the bank’s stock is trading close to its book value, which could be a sign of an undervalued stock in the eyes of value investors.
Another noteworthy tip from InvestingPro is that Bank of America has raised its dividend for 10 consecutive years, indicating a continued commitment to returning value to shareholders. Furthermore, 6 analysts have revised their dividends upward for the coming period, indicating a positive outlook for the company’s financial performance. For those considering following in the footsteps of Berkshire Hathaway or looking for a sign of stability in their investments, this tip may serve as a beacon.
For investors looking to delve deeper into Bank of America’s financial health and future prospects, InvestingPro offers additional tips. Currently, there are 7 additional tips available that can provide further clarity and help you make an informed decision. These tips can be accessed through the InvestingPro platform at https://www.investing.com/pro/BAC.
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