Berkshire Hathaway Inc . (NYSE:BRKa) has made a significant investment in Liberty Media Corp, purchasing shares worth approximately $12.3 million. The transactions, which took place over a series of days, saw Berkshire Hathaway acquire a total of 500,000 shares of Liberty Media Corp's Series A Liberty SiriusXM Common Stock, traded on NASDAQ:LSXMA.
The buying spree began on April 24, 2024, with Berkshire Hathaway buying 123,388 shares at a weighted average price of $25.2174. The price range for these purchases varied from $25.0500 to $25.3750, indicating Berkshire Hathaway's commitment to investing despite the price fluctuations.
The following day, on April 25, the conglomerate continued its purchasing, adding another 157,309 shares to its portfolio at an average price of $24.4276, within a price range of $24.1700 to $25.1100. The buying concluded on April 26, with an additional 219,303 shares bought at an average price of $24.4608, with prices ranging from $24.3000 to $24.6500.
After these transactions, Berkshire Hathaway's holdings in Series A Liberty SiriusXM Common Stock increased significantly, reflecting a strong position in the media company. The conglomerate, led by the renowned investor Warren E. Buffett, now owns a total of 35,182,219 shares.
The details of these transactions were disclosed in compliance with the Securities and Exchange Commission regulations. The footnotes in the report suggest that a large portion of the shares are owned by subsidiaries and pension plans of Berkshire Hathaway, with Warren E. Buffett having a pecuniary interest in the shares owned by these entities. Both Berkshire and Buffett have disclaimed beneficial ownership of these securities, except to the extent of their pecuniary interest.
Investors and market watchers closely follow Berkshire Hathaway's investment moves, as they often signal confidence in the companies and sectors they choose to invest in. The recent acquisition of Liberty Media Corp stock by Berkshire Hathaway is no exception and may influence market perceptions of the media company's prospects.
InvestingPro Insights
Berkshire Hathaway's recent investment in Liberty Media Corp's Series A Liberty SiriusXM Common Stock (NASDAQ:LSXMA) is not just a headline; it's backed by intriguing financial metrics and expert analysis. According to InvestingPro data, Liberty Media Corp has a market capitalization of approximately $7.94 billion, with a Price to Earnings (P/E) ratio of 9.56, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q4 2023, standing at 9.31. These figures suggest that the company is potentially undervalued compared to its earnings.
One of the InvestingPro Tips highlights that the stock is currently in oversold territory based on the Relative Strength Index (RSI), which often indicates a potential upcoming rebound in the stock's price. Furthermore, the company's valuation implies a strong free cash flow yield, reinforcing the attractiveness of the investment from a cash generation standpoint. It's also worth noting that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
However, not all signs are positive. Another InvestingPro Tip points out that the company's short-term obligations exceed its liquid assets, which could present liquidity risks. Additionally, the stock has fared poorly over the last month, with a one-month price total return of -17.59%. But with a fair value estimate by analysts at $34 and the InvestingPro fair value at $27.22, there could be room for growth, especially considering Berkshire Hathaway's recent buying activity.
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