In a recent transaction, Berkshire Hathaway Inc . (NYSE:BRKa) has increased its stake in Liberty Media Corp, the company known for its holdings in the media and entertainment industries. The conglomerate, led by billionaire investor Warren Buffett, purchased shares valued at a total of approximately $66.4 million.
The series of acquisitions involved Liberty Media Corp's Series C Liberty SiriusXM Common Stock, traded under the ticker NASDAQ:LSXMK. The buying spree occurred over several days, with the share prices for these transactions ranging between $26.9817 and $27.7594.
On April 4, 2024, Berkshire Hathaway bought 1,250,000 shares at a weighted average price of $27.7594. This was followed by a purchase of 234,729 shares on April 5 at an average price of $27.2112, and another 938,896 shares on April 8 at an average price of $26.9817. These purchases have further solidified Berkshire Hathaway's position as a significant shareholder in Liberty Media Corp.
It is important to note that the stated prices are weighted averages, and the shares were bought at various prices within the provided ranges. Berkshire Hathaway, under the umbrella of which these transactions were made, may be deemed to beneficially own the shares through its subsidiaries and pension plans, although Warren E. Buffett, as the controlling stockholder, disclaims beneficial ownership except to the extent of his pecuniary interest therein.
The latest acquisitions bring Berkshire Hathaway's total ownership in Liberty Media Corp's Series C Liberty SiriusXM Common Stock to a substantial number, reflecting the conglomerate's ongoing investment strategy and confidence in the media company's value proposition.
InvestingPro Insights
In light of Berkshire Hathaway's increased stake in Liberty Media Corp's Series C Liberty SiriusXM Common Stock (NASDAQ:LSXMK), investors may find it valuable to consider some key financial metrics and insights provided by InvestingPro. With a market capitalization of $8.7 billion and a price-to-earnings (P/E) ratio of 10.71, Liberty Media appears to present an interesting value proposition. The adjusted P/E ratio for the last twelve months as of Q4 2023 stands slightly lower at 10.22, indicating a consistent earnings valuation.
Liberty Media has demonstrated a solid gross profit margin, with data from the last twelve months as of Q4 2023 showing a figure of 48.98%. This suggests the company has been efficient in managing its cost of goods sold relative to its revenue, which was recorded at $8.953 billion during the same period. Furthermore, the operating income margin stands at a healthy 21.28%, reflecting the company's operational profitability.
InvestingPro Tips reveal that Liberty Media has a high shareholder yield and generally trades with low price volatility, which may appeal to investors seeking stable investment opportunities. Additionally, analysts predict the company will be profitable this year and it has been profitable over the last twelve months. However, it's worth noting that the company does not pay dividends to shareholders and its short-term obligations exceed its liquid assets, which could be a point of consideration for risk assessment.
For those interested in a deeper analysis, InvestingPro offers a variety of additional tips, with 3 more tips available for Liberty Media Corp on their platform. To access these insights, visit https://www.investing.com/pro/LSXMK and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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