Ace investor Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) is once again raising its stake in the oil and gas giant Occidental Petroleum (NYSE: OXY). According to a Reuters report, with this latest round of purchases, Berkshire’s stake in Occidental has increased to 22.2% from 21.4%.
In an SEC filing, Berkshire disclosed its purchase of over 5.8 million additional shares of Occidental in multiple transactions between March 3 and March 7. These transactions were made at prices ranging from $59.80 to $61.90, for an aggregate price of $355 million.
It is worth highlighting that the “Oracle of Omaha” now owns 200.2 million shares of Occidental, worth $12.2 billion, based on Tuesday’s closing price. Berkshire also owns Occidental’s preferred stock, worth $10 billion, along with warrants to purchase common shares for $5 billion.
Shares of Occidental more than doubled in 2022 on higher energy prices and the growing interest of Berkshire in the company. However, the steam has been somewhat lost in 2023 due to declining energy prices.
On the positive side, Occidental’s debt load has decreased substantially over the past year which bodes well for its financial position. Also, the company recently announced a 38% hike in its quarterly dividend to $0.18 per share, which means greater returns for Buffett.
Is OXY a Buy or Sell?
Overall, Wall Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on nine Buys, five Holds, and one Sell. The average price target of $73 implies 20% upside potential from current levels.
Is Berkshire a Good Stock to Buy?
On TipRanks, the BRK.B stock has a Moderate Buy consensus rating based on one Buys and one Hold. The average price target of $353 implies 13.5% upside potential.
