Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) has again increased its stake in Occidental Petroleum (OXY), bringing it to 28.3%. On February 7, the investment conglomerate bought an additional 763,017 OXY stock valued at $35.72 million. According to Form 4 filed with the SEC on February 11, Berkshire purchased one single lot of Occidental stock at a weighted average price of $46.8195 per share.
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Occidental Petroleum is a regular dividend-paying stock, which is a good thing for Berkshire. OXY stock currently pays a quarterly dividend of $0.219 per share. It offers a 1.88% dividend yield, which is lower than the sector average.
Berkshire Keeps Accumulating Occidental Stock
Following the latest stock purchase, Berkshire now owns 264.94 million of Occidental’s common shares, worth roughly $12.9 billion. Berkshire is a majority shareholder in Occidental, implying it owns more than 10% of OXY stock. Additionally, Berkshire holds approximately $8.5 billion worth of Occidental’s preferred stock and 83.86 million convertible warrants.
Shares are held indirectly through Berkshire’s subsidiary, National Indemnity Company. As a regulatory requirement, Berkshire is required to file any further share purchases of Occidental within two business days.
Occidental Petroleum stock currently has a Very Positive Insider Confidence Signal on TipRanks, based on Informative Buy transactions worth $409.1 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Occidental Petroleum Stock a Good Buy?
Occidental is set to report its Q4 FY24 results on February 18. Ahead of the results, analysts prefer to remain on the sidelines on Occidental stock owing to the company’s ongoing efforts to reduce debt and improve its financial performance.
On TipRanks, OXY stock has a Hold consensus rating based on seven Buys, 13 Holds, and two Sell ratings. Also, the average Occidental Petroleum price target of $60.23 implies 23.9% upside potential from current levels. In the past year, OXY stock has lost 14.9%.
