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Berkshire Hathaway Lends Strength to Occidental Petroleum Stock; Here’s How

Story Highlights

A proper analysis of the insider activities of a company may yield useful information. Berkshire Hathaway’s initiatives of increasing its stake in Occidental Petroleum might interest investors.

Occidental Petroleum Corporation (NYSE: OXY) caught the market’s attention on Monday after one of its prominent corporate insiders purchased its shares worth $44 million.

Shares of this oil & gas exploration and production company increased 2.4% to close at $58.90 in the normal trading session on Monday. The stock rose another 1.5% in the extended trade.

The Insider Trading tool by TipRanks gives us complete information about Monday’s insider transaction. The share purchase transaction was executed by Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B). The Warren Buffet led-company owns >10% shares in Occidental Petroleum.

The corporate insider bought 794,389 shares of Occidental Petroleum for $55.38 per share. The transaction has been categorized as an Informative Buy.

It is worth noting that Monday’s transaction was the second Informative Buy transaction executed by Berkshire Hathaway in the last seven days. On June 22, the corporate insider purchased 9.55 million OXY shares for $55.35 per share. The transaction value stood at $528.75 million.

A pictorial presentation of the aforementioned transactions is provided below.

Meanwhile, the TipRanks tool reveals that insider confidence in OXY is currently Positive. In the last three months, corporate insiders have purchased $953.6 million worth of OXY shares.

Wall Street’s Take

On TipRanks, the company has a Moderate Buy consensus rating based on nine Buys, six Holds, and two Sells. OXY’s average price forecast is pegged at $74.53, mirroring 26.54% upside from the current level.

Over the past year, shares of OXY have grown 88.5%.

Four days ago, Scott Gruber of Citigroup reiterated a Buy rating on OXY while lowering the price target to $65 (10.36% upside potential) from $72.

Per TipRanks data, hedge fund confidence in OXY is Very Positive, and their holding of OXY shares has increased by 75.5 million shares in the last quarter. Meanwhile, the investor sentiment on the stock is also Very Positive. In the last 30 days, portfolios on TipRanks with exposure to OXY have increased by 5.7%.

Conclusion

Investors will be intrigued to know that Berkshire Hathaway has purchased approximately 123.7 million shares of OXY in transactions worth $6.6 billion since the beginning of 2022.

Such activities by the Warren Buffet company raise optimism about the prospects of this U.S. oil and gas behemoth. OXY’s pursuit of rewarding its shareholders through dividends and share buybacks as well as lowering debts is enticing.

In addition to the Insider Trading tool, a list of Daily Insider Transactions, Insiders’ Hot Stocks, and Top Corporate Insiders available on TipRanks might interest investors.

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