Warren Buffett buying more Occidental Petroleum ! According t | Rakuten Trade Ideas 🎯

Warren Buffett buying more Occidental Petroleum !

According to the data disclosed by US Securities and Exchange Commission (SEC), Warren Buffet Berkshire Hathaway's (BRK B) stake in Occidental Petroleum Corp (OXY) has increased to above 25%.

Buffett's most recent invested US$120 million to increase its holdings of 2.14 million Occidental shares between June 26 and June 28, with an average purchase price of about US$57.05 per share. Berkshire had also purchased about 4.66 million Occidental shares on May 30. In other words, Buffett has increased his holdings in less than a month.

It also recently owned about US$9.5 billion of Occidental preferred shares carrying an 8% dividend, with warrants to buy another US$5 billion of Occidental shares at US$59.62 each.

Analysts estimate Occidental to report earnings per share (EPS) of US$0.974 per share, down 74.02% year-on-year. They estimated quarterly revenue of US$7.034 billion, down 34.12% year-on-year.

From the last quarter's results, Occidental's profit slowed despite production increasing to 1.22 million barrels of oil equivalent a day (BOE/D) from 1.079 million BOE/D in 2022. It has raised its full-year output projection to 1.195 million BOE/D.

Analysts expect energy prices to increase later in the year, especially since China's economic reopening leads to a significant upswing in oil demand. Analysts also expect Brent crude, the international benchmark, to increase to US$100 a barrel, despite China's disappointing reopening since dialing back its zero-Covid policies.

The share price of Occidental is down -6.00% year-to-date, and the last price was US$59.17

Bloomberg consensus rating has 12 Buys, 17 Holds, and 1 Sell, with a 12-month target price of US$68.15

Sources: Reuters, Business Insider, Rigzone

As at 9pm, Dow Jones Futures 34,447 (-0.55%).

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