It’s not a good day for insurance and investment operation Berkshire Hathaway (NYSE:BRK.B), as its shares slipped nearly 2% in Monday afternoon’s trading session. Even its connection to the Wizard of Omaha, Warren Buffett, couldn’t spare it from trouble as new information about stock buybacks emerged, along with analysts’ thoughts of the stock as a whole.
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The bad news started with word about Berkshire’s rate of stock buybacks. In the first quarter of 2023, Berkshire bought back a whopping $5 billion in shares. But in the second quarter, that number plunged to $1.4 billion, Ultimately, in the third quarter, that number dropped once again to $1.1 billion, and that didn’t sit well.
Furthermore, Berkshire recently reported its first quarterly loss in a year, even as its operating earnings and cash reserves were on an upward tear. Operating earnings were up a healthy 40%, while cash reserves soared to a staggering—and record high—$157.2 billion.
Nevertheless, analysts aren’t exactly put out about Berkshire’s performance. James Shanahan with Edward Jones noted that Berkshire has delivered excellent growth with its earnings and investment income, and with cash and bond holdings on the rise, it’s got a couple different paths to victory.
Is Berkshire Hathaway a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BRK.B stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average BRK.B price target of $410 per share implies 18.96% upside potential.
