According to the disclosure, Berkshire bought another 6.68 million common shares of the oil giant between August 4 to August 8, now owning a 20.2% stake.
A rough estimate of the costs equates to $391 million over multiple transactions, with a price range between $57.32 and $60.01, with the total stake in Occidental now worth roughly $11.3 billion. The total number of shares owned is 188.3 million, with an additional 100,000 preferred shares and warrants to purchase nearly 84 million common shares.
In the after-market session on August 8, OXY was up 1.38%, while year-to-date (YTD) was up over 93%. Energy has been doing well in 2022, but OXY was probably boosted even more by the Buffett effect.
OXY chart and analysis
Looking at the yearly performance, OXY did better than 98% of all other stocks and is one of the better-performing stocks in the Oil, Gas & Consumable Fuels industry.
Currently, a possible entry point could be around the prices Buffett paid for the stock, between the range of $57.32 and $60.
Additionally, analysts rate the shares a ‘moderate buy,’ predicting that in the next 12 months, the stock could trade at $75.56, 25.85% higher than the current trading price of $60.04 at the time of publication.
Earlier, Finbold reported on Buffett’s purchase of OXY when he was closing in on a 20% stake, also highlighting speculations that Berkshire could outright buy the entire Occidental company.
Looking at Buffett’s buying patterns and stake, this could be in the realm of possibility. Still, at the moment, no official announcement has been made on a potential complete takeover of Occidental.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.