Shares of Occidental Petroleum (OXY) marked a new all-year high of $64.50 on May 5, after billionaire investor Warren Buffett’s conglomerate Berkshire Hathaway (BRK.A) disclosed an additional stake in OXY shares to the tune of 5.9 million.
At the time of writing, OXY stock was up 1.5% during pre-market trading. Year-to-date, OXY stock is up a whopping 101%, boosted by the rising fuel prices, but most of the uptick came since March, when Berkshire first disclosed its stake of 9.8% in the oil and natural gas producer.
Berkshire’s Additional Stake in OXY
As per a recent Form 4 filing, Berkshire bought an additional 5,887,618 shares of Occidental Petroleum on May 2, at prices ranging between $55.9957 and $58.3745.
The purchase makes Berkshire a 15.2% owner of Occidental, up from the earlier 14.6% stake disclosed during the first quarter results call.
Apart from this, Berkshire also owns $10 billion worth of preferred stock of OXY along with warrants to buy an additional 83.9 million shares of OXY at an exercise price of $59.62 per share.
Wall Street’s View
Nonetheless, analysts on the Street are cautiously optimistic about OXY stock with a Moderate Buy consensus rating based on ten Buys, seven Holds, and one Sell. The average Occidental Petroleum price target of $69.47 implies 11.5% upside potential to current levels.
Stock Investors
Following suit with the Oracle of Omaha’s conviction, retail investors too added huge chunks of OXY stock to their portfolios.
At the time of writing, TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Occidental Petroleum, with 15.5% of portfolios tracked by TipRanks increasing their exposure to OXY stock over the past 30 days.
Concluding Thoughts
The increased fuel prices have made the oil & gas sector a lucrative bet for many investors and the recent broader market sell-off makes investing in stocks even more attractive.
Recently, Berkshire also upped its stake in energy giant Chevron Corp. (CVX), personal computer manufacturer HP (HPQ), and Alleghany (Y). Besides these, iPhone manufacturer Apple (AAPL), and banking giant Bank of America (BAC) remain some of Buffett’s top favorites. If you are confused about where to put your investible corpus, following one of the world’s top billionaires would be a prudent choice.
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