In a recent series of transactions, Berkshire Hathaway Inc . (NYSE:BRKa), led by renowned investor Warren Buffett, has added to its holdings in Liberty Media Corp, the parent company of SiriusXM Radio and other media assets. The conglomerate acquired a total of $20.84 million worth of Liberty Media's Series A Liberty SiriusXM Common Stock, traded under NASDAQ:LSXMA, according to regulatory filings.
The purchases occurred over three consecutive days, with Berkshire Hathaway acquiring the shares at prices ranging from $25.6716 to $26.1947. On April 10, 2024, the company bought 318,223 shares at an average price of $26.0186. The following day, an additional 168,650 shares were purchased at an average price of $26.1947, and on April 12, 317,017 shares were bought at an average price of $25.6716.
These transactions have increased Berkshire Hathaway's stake in Liberty Media Corp, with the total number of shares owned following the transactions amounting to 34,682,219. The new acquisitions are part of the company's expansive portfolio, which includes significant holdings across various sectors.
The recent purchases by Berkshire Hathaway underscore the value seen in Liberty Media Corp, which has diverse interests in the media and entertainment industry. The transactions are made public through the SEC's Form 4 filings, which provide insights into the trading activities of a company's insiders, giving investors a glimpse into the strategic moves of high-profile investors like Warren Buffett.
Berkshire Hathaway's continued investment in Liberty Media Corp reflects confidence in the company's prospects and its position in the media landscape. Investors and market observers often watch Buffett's investment moves closely, as they may signal broader market trends or strategic shifts in the conglomerate's approach to portfolio management.
The detailed information regarding the number of shares purchased at varying prices within the reported range is available upon request from Liberty Media Corporation, its security holders, or the SEC staff, as stated in the footnotes of the SEC Form 4 filing.
InvestingPro Insights
As Berkshire Hathaway bolsters its position in Liberty Media Corp (NASDAQ:LSXMA), investors are keen to understand the value proposition of the media conglomerate. With a market capitalization of $8.33 billion and a price-to-earnings (P/E) ratio of 10.01, Liberty Media presents an interesting case for potential investors. The adjusted P/E ratio, based on the last twelve months as of Q4 2023, stands slightly lower at 9.75, suggesting a potentially undervalued stock in comparison to industry peers.
Liberty Media has demonstrated financial resilience, reporting a gross profit of $4.385 billion with a strong gross profit margin of 48.98% for the same period. This robust margin highlights the company's ability to manage its cost of goods sold effectively, which is a critical factor for profitability. Additionally, the operating income margin of 21.28% underscores the company's operational efficiency.
Among the InvestingPro Tips, two particularly stand out for Liberty Media. The first is the high shareholder yield, which, despite the company not paying dividends, indicates a return of value to shareholders through other means such as buybacks or debt reduction. The second is the fact that the stock generally trades with low price volatility, providing a level of predictability and stability for investors. These insights, along with 5 more tips, are available through InvestingPro, and can be further explored by interested investors seeking a more comprehensive analysis. For a deeper dive into these insights, visit https://www.investing.com/pro/LSXMA and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date on May 6, 2024, and analysts predicting profitability for the year, Liberty Media Corp may be a company to watch. The InvestingPro Fair Value estimate stands at $29.93, which is below the analyst target of $35, suggesting that there could be room for the stock price to grow. These metrics and more can help investors make informed decisions aligned with Berkshire Hathaway's recent investment moves.
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