In a recent move that caught the attention of investors, Berkshire Hathaway Inc . (NYSE:BRKa) has made a significant purchase of Liberty Media Corp (NASDAQ:LSXMK) shares. On April 29, Berkshire Hathaway, led by renowned investor Warren E. Buffett, acquired a total of 311,637 shares of Liberty Media's Series C Liberty SiriusXM Common Stock at an average price of $25.4664, amounting to a substantial investment of approximately $7.94 million.
The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission. According to the details provided, these shares were bought in multiple transactions, with prices ranging from $24.75 to $25.60. This acquisition has increased Berkshire Hathaway's already significant holdings in the media company, demonstrating the conglomerate's continued confidence in Liberty Media's value proposition.
Liberty Media Corp, incorporated in the state of Delaware, operates within the technology sector, specifically in television broadcasting stations. The company has a diverse range of assets, including interests in the Atlanta Braves baseball club and SiriusXM.
It's important to note that of the total shares reported, 55,224,575 are owned by subsidiaries of Berkshire Hathaway, including Government Employees Insurance Company and National Indemnity Company, among others. Additionally, 14,778,322 shares are held by pension plans of Berkshire's subsidiaries. Both Berkshire Hathaway and Mr. Buffett have disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.
Investors often keep a close eye on the buying and selling activities of major conglomerates like Berkshire Hathaway, as these can be indicative of the company's strategic direction and market outlook. This latest acquisition is no exception and is likely to be analyzed for insights into Berkshire Hathaway's investment strategy.
Warren E. Buffett, as the controlling stockholder of Berkshire, is recognized for his value investing philosophy and long-term investment approach. The purchase of Liberty Media shares aligns with Berkshire Hathaway's history of investing in companies with strong fundamentals and potential for sustained growth.
As of the date of the report, Berkshire Hathaway's overall holdings in Liberty Media's Series C Liberty SiriusXM Common Stock stand at 70,002,897 shares. The transaction was signed off by Warren E. Buffett, on behalf of himself and each other reporting person under the filing.
InvestingPro Insights
Liberty Media Corp (NASDAQ:LSXMK) has been the subject of Berkshire Hathaway's latest investment move, and the figures from InvestingPro provide a deeper look into the company's financial health. With a market capitalization of $8.05 billion, Liberty Media appears to have a sturdy financial footing. The company's P/E ratio, which stands at 9.97, suggests that investors are paying less for each dollar of LSXMK's earnings compared to the market average, potentially indicating an undervalued stock. This aligns with the InvestingPro Tips that highlight the company's strong free cash flow yield, a factor that may have attracted Berkshire Hathaway's interest.
Additionally, the company's adjusted P/E ratio for the last twelve months as of Q4 2023 is even lower at 9.37, reinforcing the valuation appeal. Despite a slight decline in revenue growth by 0.56% over the same period, Liberty Media maintains a robust gross profit margin of 48.98%, indicating effective cost management and a healthy ability to generate earnings.
While the company does not pay a dividend, suggesting a reinvestment strategy for growth or debt reduction, the InvestingPro Tips also caution investors about the company's short-term obligations exceeding its liquid assets. This could be a point of consideration for potential investors looking at the company's financial resilience. Moreover, the stock has experienced a decline over the past month and three months, with a one-month price total return of -15.91% and a three-month price total return of -20.68%. Yet, it's worth noting that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
For those interested in further analysis and additional tips, InvestingPro offers more insights on Liberty Media Corp. There are 6 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's prospects. Readers can access these tips at https://www.investing.com/pro/LSXMK and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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