Buffett’s Berkshire buys another fraction of Occidental now owning over 20% of the firm

Another SEC filing released on August 8 showed that Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) bought more shares of Occidental Petroleum (NYSE: OXY). 

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.

In the last month, OXY has been trading between $55.91 and $66.05. The technical analysis shows the support line is at $57.09, and the resistance zone is between $60.46 to $62.10. 

OXY 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

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.

Wall Street analysts’ price targets for OXY. Source: TipRanks  

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.   

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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