After revealing a revamped stock portfolio in his 13F fillings, the second quarter for Warren Buffett showed that he abstained from selling Bank of America (NYSE: BAC) stock during this period; however, the month of July started his selling spree.
Looking at the insider trading information for BAC stock, data reveals that the CEO of Berkshire Hathaway (NYSE: BRK.A) offloaded $4.36 billion worth of Bank of America shares in trades from July 22 to August 19.
Bank of America stock price chart
Interestingly, BAC stock performance has taken a hit since the “Oracle of Omaha” started with its sales on July 22, losing 8.53% of its value.
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In the most recent trading session, BAC shares closed trading on August 20 at a $38.69 valuation, notching a 2.47% loss, which erased the gains of 0.36% from the previous five trading sessions.
Further insider trade data reveals that Berkshire Hathaway has been the most notable insider seller of BAC stock, with a lack of other insiders selling their holdings, which could mean that Buffett’s selling activity could be directly correlated to the decline in BAC share price during this period.
What motivated Buffett to sell BAC stock?
Buffett’s offloading of BAC stock could align with his years-long trend of exiting the U.S. bank sector.
He sold his positions in Goldman Sachs (NYSE: GS) and JPMorgan (NYSE: JPM) in 2020 and in Wells Fargo (NYSE: WFC) in 2022.
In the first quarter of 2023, Buffett also sold off his holdings in U.S. Bancorp (NYSE: USB) and Bank of New York Mellon (NYSE: BK).
This historical activity and recent sales could mean Buffett is preparing to completely offload his second-largest holding, which is 14.67% worth over $38 billion.
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