In a recent transaction, Berkshire Hathaway Inc . (NYSE:BRKa) has increased its stake in Liberty Media Corp (NASDAQ:FWONA), investing a total of $15.87 million in the company's Series C Liberty SiriusXM Common Stock. The purchases, which took place over three days, added a significant number of shares to Berkshire's already substantial holdings in Liberty Media, traded under NASDAQ:LSXMK.
The transactions began on April 24, 2024, with Berkshire Hathaway acquiring 142,299 shares at a weighted average price of $25.1618, which ranged from $24.9950 to $25.3300. This was followed by the purchase of 227,469 shares on April 25 at an average price of $24.3622, with prices varying from $24.1000 to $25.0300. The buying spree concluded on April 26, with an additional 277,248 shares acquired at an average price of $24.3387, within a range of $24.2000 to $24.5800.
These strategic acquisitions have bolstered Berkshire Hathaway's position in Liberty Media, reflecting confidence in the company's value and prospects. The total shares owned by Berkshire Hathaway in Liberty Media's Series C stock now stand at a formidable 69,691,260.
The transactions were undertaken by subsidiaries of Berkshire Hathaway, with a notable portion of the shares owned by the insurance and pension plans of Berkshire's subsidiaries. Warren E. Buffett, as the controlling stockholder of Berkshire, has a pecuniary interest in the shares owned by these entities but disclaims beneficial ownership except to the extent of this interest.
Investors and market watchers closely monitor such moves by Berkshire Hathaway, given the firm's reputation for value investing and the influence of its CEO, Warren E. Buffett. The recent purchase in Liberty Media stock is no exception and may signal a positive outlook for the broadcaster's future performance.
InvestingPro Insights
Following Berkshire Hathaway's notable investment in Liberty Media Corp's Series C Liberty SiriusXM Common Stock, a look at the recent performance metrics and analyst insights from InvestingPro provides a deeper understanding of the company's financial health and market position. The PRONEWS24 coupon code offers an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes further valuable InvestingPro Tips.
InvestingPro data shows a current market capitalization of $7.93 billion for Liberty Media (NASDAQ:LSXMK), with a P/E ratio sitting at 9.31 when adjusted for the last twelve months as of Q4 2023. This could suggest that the stock is reasonably valued compared to earnings. The company's revenue for the same period stands at $8.953 billion, with a gross profit margin of 48.98%, indicating a strong ability to retain earnings after the cost of goods sold is accounted for.
InvestingPro Tips highlight that the stock's Relative Strength Index (RSI) suggests it is in oversold territory, which can be an indicator for potential rebound opportunities for investors. Additionally, the valuation implies a strong free cash flow yield, which may have been one of the factors influencing Berkshire Hathaway's decision to increase its stake. It's important to note that analysts predict the company will be profitable this year and it has been profitable over the last twelve months. However, the company does not pay a dividend, which could influence the types of investors attracted to the stock.
With these insights, investors can make more informed decisions regarding Liberty Media's stock. For those looking to delve deeper, there are additional InvestingPro Tips available, offering a comprehensive analysis of the company's financials and market performance.
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