Berkshire Hathaway Inc Has $27.54 Billion Stock Holdings in Bank of America Corporation $BAC

Key Points

• Berkshire Hathaway cut its Bank of America stake by 5.9% in the second quarter, selling 30.2 million shares but retaining 483.4 million shares valued at approximately $27.5 billion. BAC remains Berkshire’s fifth-largest holding and represents 9.2% of its portfolio.
• Bank of America reported stronger-than-expected quarterly results, with EPS of $1.21 and revenue of $31.56 billion, up 19.6% year over year. The bank also raised its quarterly dividend to $0.32, implying a 2.1% yield.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $64.08 price target, though risks include a potential SEC investigation involving margin lending, higher capital requirements and the loss of a senior technology investment-banking executive.

Berkshire Hathaway Inc trimmed its position in Bank of America Corporation (NYSE:BAC) by 5.9% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 483,394,015 shares of the financial services provider's stock after selling 30,230,150 shares during the quarter. Bank of America accounts for 9.2% of Berkshire Hathaway Inc's holdings, making the stock its 5th largest holding. Berkshire Hathaway Inc owned about 6.91% of Bank of America worth $27,543,791,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in BAC. Magnolia Capital Advisors LLC bought a new stake in shares of Bank of America in the second quarter valued at about $813,000. Arini Capital Management Ltd bought a new position in Bank of America in the second quarter worth approximately $5,698,000. Freestone Grove Partners LP purchased a new stake in Bank of America during the second quarter worth $2,799,000. Caisse de depot et placement du Quebec purchased a new position in shares of Bank of America in the 2nd quarter valued at $241,973,000. Finally, Gallagher Fiduciary Advisors LLC bought a new position in shares of Bank of America in the 2nd quarter worth $759,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Stock Performance

Shares of NYSE BAC opened at $62.38 on Friday. Bank of America Corporation has a 1 year low of $46.12 and a 1 year high of $65.22. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The company's fifty day moving average price is $61.18 and its 200 day moving average price is $54.92. The company has a market capitalization of $436.21 billion, a PE ratio of 14.31, a price-to-earnings-growth ratio of 0.98 and a beta of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. During the same period in the prior year, the company posted $0.89 EPS. The company's revenue for the quarter was up 19.6% on a year-over-year basis. On average, research analysts predict that Bank of America Corporation will post 4.68 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.1%. This is a boost from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. Bank of America's dividend payout ratio (DPR) is presently 25.69%.

Bank of America News Summary

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America’s artificial-intelligence initiatives and branch expansion are expected to improve operating efficiency and customer service. The potential for productivity gains supports the long-term earnings case, although elevated expenses remain a risk. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: Strong inflows into gold and cryptocurrency funds reported by BofA suggest elevated client demand for investment products. That activity could benefit the bank’s wealth-management, brokerage and trading businesses, though the impact on BAC’s earnings is indirect.
• Neutral Sentiment: Bank of America disclosed holdings of approximately 4.69% and 5.87% in QIAGEN, reflecting regulatory notifications about its investment position. The disclosures may attract attention but do not materially change BAC’s core banking outlook. Bank of America Discloses 5.87% Stake in QIAGEN
• Neutral Sentiment: BofA strategists warned that global equities could face an autumn “reality check” tied to the U.S. midterm elections and geopolitical developments. A market pullback could weigh on BAC through lower investment-banking, asset-management and trading activity. Bank of America Warns of an Autumn Reality Check
• Negative Sentiment: JPMorgan is hiring senior technology dealmaker David Fishman from Bank of America. Losing an experienced M&A executive could weaken BAC’s technology investment-banking franchise and adds to competitive pressure. JPMorgan Hiring Bank of America’s David Fishman
• Negative Sentiment: The SEC is reportedly investigating margin lending to hedge fund Situational Awareness after a 67% drawdown, with Bank of America among the subpoenaed banks. Potential legal, credit and reputational risks could pressure sentiment. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: BAC is challenging proposed changes to the Federal Reserve’s global systemically important bank capital surcharge. Higher capital requirements could constrain lending, reduce balance-sheet flexibility and pressure returns on equity. Bank of America Joins Clash Over Fed GSIB Capital Rule

Analyst Ratings Changes

BAC has been the subject of several analyst reports. Jefferies Financial Group reissued a "buy" rating and set a $75.00 price target on shares of Bank of America in a research report on Tuesday, July 14th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, July 21st. Royal Bank Of Canada upped their price objective on shares of Bank of America from $59.00 to $65.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Keefe, Bruyette & Woods raised their price target on shares of Bank of America from $67.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, July 15th. Finally, Evercore set a $63.00 price objective on shares of Bank of America and gave the company an "outperform" rating in a report on Monday, July 6th. Twenty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $64.08.

Bank of America Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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