In its recent filing with the Securities Exchange Commission (SEC), Hydrocarbon exploration company Occidental Petroleum Corporation (NYSE: OXY) revealed that Warren Buffett’s Berkshire Hathaway (BRK.A) has bought a big chunk of its shares.
Berkshire Hathaway is a top shareholder of Occidental Petroleum Corporation. OXY stock declined 3.6% to close at $55.77 on Wednesday.
Details of the Purchase
Over the past six days, Berkshire Hathaway has bought a total of 9.55 million shares of Occidental Petroleum at an average price of $55.36 per share for roughly $528.8 million. Berkshire Hathaway now owns a total of 15.27 million shares of the company.
Interestingly, Berkshire Hathaway has accumulated OXY stock worth $916.7 million in the last two months.
Insiders’ Activity on TipRanks
Based on informative transactions by nine insiders over the past three months, TipRanks’ Insider Trading Activity tool shows that Insider Confidence Signal is currently Positive for OXY. Further, Corporate Insiders have bought shares worth $909.6 million over this period.
Stock Rating
Recently, Morgan Stanley analyst Devin McDermott reiterated a Hold rating on the stock with a price target of $74, which implies upside potential of 32.7% from current levels.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on eight Buys, seven Holds, and two Sells. OXY’s average price target of $73.76 implies that the stock has upside potential of 32.3% from current levels.
Conclusion
Warren Buffett is a celebrated name in the investment industry, and when he makes a move in the market, it is noticed. Taking this into account, Buffet’s move to invest heavily in petroleum stocks like Chevron (CVX) and
Occidental Petroleum hints at the fact that oil prices are not expected to cool down in the near term and these companies will continue to enjoy healthy margins, which makes them attractive investment picks.
