Billionaire Investor Warren Buffett is back in the stock market with a bullish take. According to an SEC filing, which was submitted on August 15, Warren Buffet’s conglomerate holding company Berkshire Hathaway Inc. (BRK.A) made noticeable stakes in Ally Financial Inc. (ALLY) and Activision Blizzard Inc. (ATVI).
Following the news, shares of Ally Financial rose more than 5% in Tuesday’s pre-market trading session. Surprisingly, shares of Activision Blizzard remained almost flat.
According to the filing, Berkshire now holds 30 million ALLY shares, compared to just nine million shares held in the previous quarter.
Based in the U.S., Ally Financial is a bank holding company that provides financial services, including car finance, online banking via a direct bank, corporate lending, vehicle insurance, and mortgage loans.
Buffet’s stake in Activision Blizzard has grown to 68.4 million shares worth $5.3 billion. This represents over 8% of the current market capitalization of the company. Perhaps, Buffett is placing his bets on the possibility of Microsoft’s proposed acquisition of ATVI, which awaits regulators’ green light.
Based in California, Activision Blizzard is a video game holding company. It develops and publishes consoles and online and mobile games.
Is Ally Stock a Good Investment?
As of now, analysts believe that Ally stock is a good investment option. On TipRanks, ALLY commands a Strong Buy consensus rating, which is based on 13 Buys, two Holds, and one Sell. Ally Financial’s average price forecast of $46.38 implies upside potential of 30.07%.
Interestingly, retail investors are also bullish on ALLY. TipRanks’ Stock Investors tool shows that 5.6% of investors on TipRanks increased their exposure to ALLY stock over the past 30 days.
Is Activision Blizzard a Buy, Sell or Hold?
As per TipRanks, analysts have mixed feelings about Activision Blizzard. ATVI stock has a Moderate Buy consensus rating, which is based on four Buys and four Holds. Activision Blizzard’s average price target of $93.43 implies 15.73% upside potential.
Further, financial bloggers are 92% bullish on the stock, compared to the sector average of 65%.
Final Thoughts
After a slow second quarter, Buffet is back in action. Apart from buying a few stocks, Buffet exited his holdings in a few names like Verizon Communications (VZ) and Royalty Pharma Plc. (RPRX).
Buffet’s bullish move on ATVI and ALLY may attract the attention of investors in the days to come.
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