Warren Buffett’s Berkshire Hathaway has increased its stake in Occidental Petroleum by purchasing an additional 763,017 shares for $35.7 million. This brings Berkshire Hathaway’s total ownership in the Houston-based energy company to 28.2%. Buffett did not intend to take a majority stake in Occidental.
The recent purchase is part of Berkshire Hathaway’s investment in the company over the past few years. In 2019, Berkshire Hathaway contributed significantly to Occidental’s acquisition of Anadarko Petroleum. As a result of the financing deal, Berkshire Hathaway holds the rights to purchase another 83.9 million shares of Occidental at $59.62 each, totaling about $5 billion.
According to a November filing, Occidental was Berkshire’s sixth-largest holding at the end of the third quarter. However, the stock has faced challenges recently, sliding 1.7% to $47.82 on Wednesday and losing around 17% of its value over the past year. Despite the fluctuating share price, Buffett’s strategic investments in Occidental Petroleum show his long-term confidence in the company’s value and potential for growth.
Large shareholders that own 10% or more of a company’s shares must disclose their sales and purchases with the SEC.
Berkshire grows Occidental Petroleum investment
In recent transactions, Berkshire Hathaway Inc. also purchased 3,614,015 shares on December 19th at an average cost of $45.60 per share, totaling $164,799,084.00, and 2,477,362 shares on December 17th at an average cost of $46.25 per share, totaling $114,577,992.50.
On Friday, Occidental Petroleum’s stock traded up by 0.5%, increasing $0.25 to reach $48.13. The company had a trading volume of 8,600,950 shares, compared to its average volume of 9,742,646. Institutional investors have recently made significant changes to their positions in OXY.
Vanguard Group Inc. increased its stake in Occidental Petroleum by 18.1% in the fourth quarter. After purchasing an additional 10,434,098 shares, it now owns 68,123,704 shares valued at $3,365,992,000.
Several brokerages have shared their evaluations on OXY. Truist Financial lifted their price objective on Occidental Petroleum from $56.00 to $58.00, giving the company a “hold” rating in a report on January 13th. Conversely, Wells Fargo & Company dropped their price objective from $56.00 to $53.00, maintaining an “equal weight” rating in a report on December 9th.
Overall, Occidental Petroleum has a consensus rating of “Hold” with a consensus target price of $61.71.
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