Berkshire Hathaway buys $176 million worth of Occidental Petroleum stock

Berkshire Hathaway . The conglomerate led by famed investor Warren Buffett (NYSE: BRK.A ) has made a large purchase of shares of Occidental Petroleum Corp (NYSE: Occidental Petroleum ), a major player in the energy sector. In a series of transactions, Berkshire Hathaway acquired shares totaling approximately $176 million, at prices ranging from $59.5893 to $59.7679 per share.

The latest filings show that Berkshire Hathaway purchased 1,552,497 shares at an average price of $59.7679, 1,060,653 shares at an average price of $59.5893, and an additional 334,461 shares at an average price of $59.7491. These acquisitions further solidified Berkshire Hathaway's position as a significant shareholder in Occidental Petroleum.

These transactions are conducted over three consecutive business days, starting on June 13, 2024, and ending on June 17, 2024. Volume has reached an impressive 255,281,524 shares.

Berkshire Hathaway's investment moves are closely watched by investors because the company's track record of value investing and long-term holding strategies have produced strong returns over the years. Despite the volatility and challenges facing the energy industry, Berkshire Hathaway's latest acquisition could be seen as a vote of confidence in Occidental's future prospects.

Investors and analysts are likely to continue to pay attention to Berkshire's investment strategies and portfolio changes, as these may signal broader market trends and opportunities in the energy industry.

In other recent news, Occidental Petroleum has been making significant progress. The company beat expectations with record first-quarter production and significant cost reductions. Additionally, Occidental Petroleum plans to improve cash flow by more than $1 billion and is focused on strengthening its balance sheet.

On the merger front, the company's expected CrownRock acquisition and divestiture plans of $4.5 to $6 billion are part of a strategy to reduce debt and increase free cash flow.

Truist Securities recently downgraded Occidental Petroleum's stock to “hold” from “buy,” citing less expected benefits from the CrownRock acquisition than other recent industry deals.

In other company news, Berkshire Hathaway expanded its stake in Occidental Petroleum Corp. by buying about 2.57 million shares, bolstering its already strong position. Occidental Petroleum has also been in the spotlight during former President Donald Trump's fundraising tour of Texas and has received strong support from the energy industry. These are the company's most recent developments.

Investment Professional Insights

Occidental Petroleum Corporation (NYSE:OXY) is a heavyweight in the energy industry and is currently on investors' radar following a recent stock purchase by Berkshire Hathaway. Occidental Petroleum Corporation stands out in the industry with a market capitalization of $53.38 billion. The company's price-to-earnings ratio, a key valuation metric, is 15.3, reflecting investors' view of the company's profit potential.

Among the famous InvestingPro Tips, Occidental Petroleum has shown long-term reliability in shareholder returns, maintaining its dividend for 51 consecutive years. Additionally, analysts remain optimistic about the company's profitability, expecting Occidental to be profitable this year, noting that the company has been profitable over the past twelve months. These factors may have contributed to Berkshire Hathaway's decision to increase its stake in the company.

InvestingPro Data also shows that the gross profit margin was as high as 59.58% in the past 12 months ending in the first quarter of 2024, indicating the company's efficiency in managing production costs and pricing strategies. Additionally, Occidental Petroleum's dividend yield of 1.46%, coupled with its 22.22% dividend growth rate, may appeal to income-focused investors.

For investors seeking a deeper understanding of Occidental Petroleum's performance and potential, there are additional InvestingPro Tips available. By visiting InvestingPro's dedicated page, investors can gain access to these insights to inform their investment decisions. Remember to use coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount, providing greater value for those looking to enhance their investment strategy.

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