In recent transactions, Berkshire Hathaway Company . (NYSE:) increased its stake in Liberty Media Corp., investing a total of $15.87 million in the company's Series C Liberty SiriusXM common stock. The acquisition, which took place over three days, added a significant number of shares to Berkshire's already substantial holdings in Liberty Media, which trades on NASDAQ:LSXMK.
The transaction began on April 24, 2024, with Berkshire Hathaway acquiring 142,299 shares at a weighted average price of $25.1618, ranging from $24.9950 to $25.3300. Subsequently, 227,469 shares were purchased on April 25th at an average price of $24.3622, and the price ranged from $24.1000 to $25.0300. The buyout ended on April 26th, 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 strengthened Berkshire Hathaway's position at Liberty Media, reflecting confidence in the company's value and prospects. The total number of Liberty Media Series C shares owned by Berkshire Hathaway is now a formidable 69,691,260 shares.
The transaction was conducted by a subsidiary of Berkshire Hathaway, with the majority of the stock owned by Berkshire's subsidiary insurance and pension plans. Warren E. Buffett, as the controlling shareholder of Berkshire, has a financial interest in the stock held by these entities, but disclaims any beneficial ownership except to the extent of this interest.
Investors and market watchers are watching Berkshire Hathaway's moves closely, given its reputation for value investing and the influence of CEO Warren E. Buffett. The recent purchase of Liberty Media stock is no different and may indicate a positive outlook for the broadcaster's future performance.
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Investment Pro Insights
Following Berkshire Hathaway's notable investment in Liberty Media Corp.'s Series C Liberty Sirius Gain a deeper understanding of gender and market position.of pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions with coupon code. This includes even more valuable InvestingPro tips.
According to data from InvestingPro, Liberty Media (NASDAQ:LSXMK) currently has a market capitalization of $7.93 billion and a 12-month adjusted P/E ratio of 9.31 as of Q4 2023. This may suggest that the stock is reasonably valued in comparison. to the bottom line. The company's revenue for the same period was $8.953 billion and its gross profit margin was 48.98%, indicating a high profit retention capacity after taking into account cost of sales.
InvestingPro Tips highlights that the stock's Relative Strength Index (RSI) suggests it is in oversold territory, which can be an indicator of a potential rebound opportunity for investors. Additionally, this valuation suggests a high 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 expect the company to be profitable this year, and it has remained profitable over the past 12 months. But the company doesn't pay a dividend, which could affect the type of investors attracted to its stock.
These insights can help investors make more informed decisions regarding Liberty Media stock. For those who want to learn more, additional her InvestingPro tips are available that provide comprehensive analysis of company finances and market performance.
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