In a recent move by Berkshire Hathaway Inc . (NYSE:BRKa), the conglomerate has increased its stake in Liberty Media Corp, the parent company of SiriusXM, among other media assets. The purchase, which occurred over three days, amounted to a total of $73.4 million worth of Liberty Media's Series A Liberty SiriusXM Common Stock, traded under the ticker NASDAQ:LSXMA.
The transaction details reveal that on March 26, Berkshire Hathaway bought 2,331,514 shares at a weighted average price of $29.1002. Subsequent purchases included 189,759 shares at an average of $29.2544 on March 27, and a smaller transaction of 158 shares at a price of $29.5 on March 28. The prices paid for these shares ranged from $28.9300 to $29.5000, according to the footnotes provided in the SEC filing.
This strategic acquisition has boosted Berkshire Hathaway's holdings in Liberty Media to a total of 32,755,624 shares. The shares are indirectly owned through subsidiaries and pension plans of Berkshire Hathaway, as indicated by the nature of ownership.
The transactions were disclosed in a filing with the Securities and Exchange Commission, signed by Warren E. Buffett, the chairman and CEO of Berkshire Hathaway. The filing also noted that some of the shares are held by subsidiaries including Government Employees Insurance Company, National Fire & Marine Insurance Company, and National Indemnity Company, as well as pension plans of Berkshire's subsidiaries.
Investors often keep a close eye on Berkshire Hathaway's stock purchases as a signal of where the 'Oracle (NYSE:ORCL) of Omaha' sees value in the market. Liberty Media Corp has a diverse portfolio of media, communications, and entertainment businesses, which now count Berkshire Hathaway as a significant investor.
InvestingPro Insights
Following Berkshire Hathaway's notable increase in its stake in Liberty Media Corp (NASDAQ:LSXMA), the market's attention has turned towards the performance and valuation metrics of the media conglomerate. According to the latest data from InvestingPro, Liberty Media Corp's market capitalization stands at approximately $9.63 billion, reflecting the scale of its operations in the media sector.
Investors examining the company's valuation metrics will find that Liberty Media Corp has a Price-to-Earnings (P/E) ratio of 11.38 based on the last twelve months as of Q4 2023. This figure suggests a potentially attractive valuation relative to earnings. Additionally, the company's Price to Book (P/B) ratio during the same period is 0.95, indicating that the stock may be trading at nearly its book value.
As for operational performance, Liberty Media Corp generated a gross profit of $4.385 billion in the last twelve months, with a gross profit margin of approximately 49%. This robust profitability is a key factor that could be driving Berkshire Hathaway's investment decision.
InvestingPro Tips highlight that Liberty Media Corp has a high shareholder yield and generally trades with low price volatility, which may appeal to investors seeking stability. Moreover, analysts predict the company will be profitable this year, with the company already profitable over the last twelve months. However, it's important to note that the company does not pay dividends, which might be a consideration for income-focused investors. Furthermore, the company's short-term obligations exceed its liquid assets, which could be a point of risk assessment for potential investors.
For those interested in a deeper analysis of Liberty Media Corp, InvestingPro offers additional insights and metrics. There are currently six more InvestingPro Tips available to subscribers, which can provide a more comprehensive understanding of the company's financial health and market position. To access these insights and capitalize on the full suite of features, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.