Berkshire Hathaway, led by Warren Buffett, has made significant changes to its holdings in Bank of America. In the third quarter, the investment firm sold 235,168,699 shares, reducing its stake by 22.8%. Despite this reduction, Bank of America remains a major component of Berkshire Hathaway’s portfolio, accounting for roughly 11.9% of its investments and standing as the third-largest holding.
Several other hedge funds have also adjusted their positions in Bank of America. Kestra Investment Management LLC increased its holdings by 36.5%, while Point72 Hong Kong Ltd boosted its stake by 1,930.7%. New purchases were made by Paradigm Capital Management LLC NV, FSA Wealth Management LLC, and B&L Asset Management LLC.
Overall, hedge funds and institutional investors own approximately 70.71% of Bank of America’s stock. As of the latest trading session, Bank of America shares closed at $47.04, with a trading volume slightly below the average. The company’s market capitalization stands at $360.93 billion, with a P/E ratio of 17.10 and a beta value of 1.32.
Bank of America released its earnings report on October 15th, showcasing per-share earnings of $0.81, surpassing the consensus estimate of $0.78. The company’s revenue for the quarter was $25.30 billion, marginally above the expected $25.25 billion.
Berkshire Hathaway’s adjusted bank holdings
The bank’s return on equity stood at 10.09%, with a net margin of 12.48%. The company has announced a quarterly dividend of $0.26 per share, set to be paid on December 27th, to shareholders of record on December 6th. The annualized dividend of $1.04 reflects a yield of 2.21%, with a payout ratio currently at 37.82%.
In insider news, Berkshire Hathaway Inc. sold 8,694,538 shares on October 15th at an average price of $42.55, totaling approximately $369,952,591.90. This transaction reduced Berkshire’s ownership to 766,305,462 shares.
Insiders sold a total of 70,007,916 shares worth $2,829,836,123 during the last quarter. Several analysts have adjusted their price targets for Bank of America, with most upgrading their ratings and increasing their price objectives between $44.00 and $56.00. Currently, Bank of America holds a “Moderate Buy” rating from a consensus of analysts.
Bank of America Corporation provides a broad range of banking and financial services, catering to individual consumers, businesses, institutional investors, and governments internationally. The corporation is structured into four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets.
