Billionaire investor Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) continues to boost its stake in oil and gas giant Occidental Petroleum (NYSE:OXY). With the recent purchases between October 23 and 25, Buffett’s conglomerate raised its stake to 25.8% from 25.1% in Occidental stock.
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In an SEC filing, Berkshire disclosed its purchase of over 3.92 million additional shares of Occidental in multiple transactions in the past three days. These transactions were made at prices ranging from $62.69 to $63.05, reflecting an average price of $62.82 per share. The transaction’s total value stands at about $246.4 million.
It is worth highlighting that the Oracle of Omaha‘s Berkshire now owns 228.05 million shares of Occidental, worth nearly $14.4 billion, based on Wednesday’s closing price. It also owns $8.5 billion of Occidental preferred stock with an 8% dividend and about 83.9 million warrants to buy OXY common shares at $59.62 apiece.
Interestingly, Buffett has the permission to purchase up to a 50% stake in Occidental. Moreover, at Berkshire’s annual meeting held in May 2023, Buffett disclosed plans to not take control of OXY entirely but to continue buying the stock.
Berkshire Hathaway – A Top-Rated Insider
Berkshire is one of the Top-rated insiders. TipRanks tracks and measures the performance of several financial experts and ranks them based on three key factors – success rate, average return, and statistical significance.
As per the data collected by TipRanks, Berkshire has had a 62% success rate in its 85 transactions in the past year, with an average return of 5.4% per transaction.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is OXY a Good Stock to Buy?
Wall Street analysts are cautiously optimistic about Occidental. It has a Moderate Buy consensus rating based on seven Buys, six Holds, and one Sell. The average OXY stock price target of $70.71 implies 11.8% upside potential.
