Bank of America stock (ticker: BAC) has experienced a significant downturn of about 17% thus far in 2023. While the bank’s earnings have been robust throughout the year, investors have become increasingly concerned about the substantial losses it is facing due to bond investments. As of the end of September, Bank of America reported unrealized losses amounting to $131.6 billion on the bonds it intends to hold until maturity, a notable increase from the $105.8 billion reported at the end of June.
In light of these developments, it is interesting to note that on Nov. 1, director Thomas D. Woods made a noteworthy purchase of Bank of America shares on the open market. Woods acquired 25,000 shares for a total cost of $656,250, with an average purchase price of $26.25 per share. According to documents filed with the Securities and Exchange Commission, Woods now possesses 64,661 shares in a personal account and an additional 50,000 shares in an investment vehicle.
Woods, who served as a former vice chairman of Canadian Imperial Bank of Commerce (CM), has refrained from commenting on his recent stock purchase. It is worth mentioning that his previous acquisition of Bank of America stock through open-market transactions occurred in April 2017 when he purchased 25,000 shares for $595,250 at an average price of $23.81 per share.
Since his appointment as a director at Bank of America in April 2016, Woods has actively served on two important committees within the bank: audit and corporate governance, environmental, social, and governance and sustainability.
Notably, Woods becomes the first Bank of America insider to engage in stock purchases since Berkshire Hathaway’s (BRK.A) significant investment in August 2020. Berkshire Hathaway, which maintains ownership of over a billion shares, currently holds a stake of approximately 13% in the bank.
It is worth mentioning that “Inside Scoop” is a regular feature highlighting stock transactions made by corporate executives, board members, prominent figures, and large shareholders. As insiders, these individuals are legally obliged to disclose any stock trades to the Securities and Exchange Commission or other relevant regulatory bodies.