OMAHA, Neb.— Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK.A), led by Warren E. Buffett, disclosed the sale of Bank of America Corp. (NYSE:BAC) shares valued at approximately $369.9 million, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on October 15, involved the sale of 8,370,178 shares at a weighted average price of $42.5223 and 324,360 shares at an average price of $43.1891. Following these transactions, Berkshire Hathaway's holdings in Bank of America amount to 766,305,462 shares.
The shares were sold in multiple transactions within price ranges of $42.0550 to $43.0500 and $43.0700 to $43.3600. The sales were conducted indirectly through various subsidiaries of Berkshire Hathaway, as noted in the filing. Warren E. Buffett, as the controlling stockholder of Berkshire, may be deemed to have a pecuniary interest in these shares, although he disclaims beneficial ownership except to the extent of his interest.
In other recent news, Bank of America Corporation (NYSE:BAC) has declared quarterly cash dividends for its common and preferred stockholders. The common stock dividend is set at $0.26 per share, while a regular quarterly cash dividend of $1.75 per share has been declared for the 7% Cumulative Redeemable Preferred Stock, Series B. The financial institution has also been performing remarkably, as noted by several financial analysis firms, including Oppenheimer, which raised its price target for the company to $50.00. JPMorgan maintained its Overweight rating for Bank of America, and Evercore ISI also raised its price target for the bank to $45.
The bank reported robust third-quarter results, with revenue totaling $25.5 billion and net income amounting to $6.9 billion after tax. The bank's net interest income (NII) observed a growth of 2%, and the financial institution also noted a significant addition of 360,000 net new consumer checking accounts during this quarter. Looking ahead, Bank of America anticipates its fourth-quarter NII to exceed $14.3 billion and foresees improved operating leverage moving into 2025. These are among the recent developments for the financial institution.
InvestingPro Insights
While Berkshire Hathaway has reduced its stake in Bank of America, the financial institution continues to demonstrate resilience and appeal to investors. According to InvestingPro data, Bank of America boasts a market capitalization of $328.46 billion, reflecting its significant presence in the banking sector. The company's P/E ratio of 15.44 suggests a reasonable valuation relative to its earnings.
InvestingPro Tips highlight Bank of America's commitment to shareholder returns, noting that it has raised its dividend for 10 consecutive years and maintained dividend payments for an impressive 54 consecutive years. This consistency in dividend policy may have been a factor in Berkshire's long-term investment strategy.
Despite the recent share sale by Berkshire, Bank of America's financial performance remains solid. The company's revenue for the last twelve months as of Q3 2024 stood at $94.63 billion, with an operating income margin of 30.62%. These figures underscore the bank's ability to generate substantial profits in a challenging economic environment.
It's worth noting that Bank of America has delivered a remarkable 59.29% total return over the past year, outperforming many of its peers. This strong performance, coupled with analysts' predictions of profitability for the current year, suggests that the bank remains an attractive investment option for many.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips on Bank of America, providing deeper insights into the company's financial health and market position.
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