In a series of transactions, Berkshire Hathaway Inc . (NYSE:BRKa) has increased its stake in Liberty Media Corp (NASDAQ:FWONA), purchasing shares worth a total of approximately $30.7 million. The purchases, made over three separate days, signal a growing investment by the conglomerate in the media company.
Berkshire Hathaway, the investment vehicle led by famed investor Warren E. Buffett, reported buying shares of Liberty Media Corp (NASDAQ:LSXMA), which operates in the Technology sector, focusing on Television Broadcasting Stations. The transactions were carried out on April 4, 5, and 8, with Berkshire Hathaway purchasing a total of 1,122,705 shares.
The shares were acquired at weighted average prices that varied each day. On April 4, shares were bought at prices ranging from $27.2500 to $28.0950, with a weighted average of $27.6385. On April 5, the prices ranged from $26.9400 to $27.4200, averaging $27.2208. The final batch of shares was purchased on April 8, with prices between $26.6500 and $27.4200, resulting in a weighted average of $26.952.
Following these transactions, Berkshire Hathaway's holdings in Series A Liberty SiriusXM Common Stock have increased significantly. The company, through its subsidiaries and pension plans, holds a substantial number of shares, with Warren E. Buffett being the controlling shareholder. However, both Berkshire Hathaway and Mr. Buffett have disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.
Investors and the market alike will be watching to see how this increased stake in Liberty Media Corp will play out in Berkshire Hathaway's portfolio. The company's moves are often seen as a bellwether in the investment community and can signal broader market trends or strategic shifts in the media landscape.
InvestingPro Insights
Liberty Media Corp (NASDAQ:LSXMA), the focus of Berkshire Hathaway's recent share acquisitions, presents a unique profile according to real-time data and InvestingPro Tips. With a market capitalization of $8.71 billion and a P/E ratio that has slightly adjusted from 10.57 to 10.22 in the last twelve months as of Q4 2023, the company stands out in the Television Broadcasting Stations sector. The PEG ratio, which indicates the stock's value while considering expected earnings growth, is currently negative at -0.34, suggesting potential concerns about future growth relative to earnings.
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. However, it's worth noting that the company's short-term obligations exceed its liquid assets, a point of consideration for those scrutinizing balance sheet strength. Analysts remain optimistic, predicting profitability for the company this year, which aligns with the company's performance over the last twelve months. Yet, Liberty Media does not pay a dividend to shareholders, which could influence the investment decisions of income-focused investors.
The revenue figures for Liberty Media are also telling, with the last twelve months as of Q4 2023 showing a slight decline of 0.56% in revenue growth. However, the company maintains a strong gross profit margin of 48.98% and an operating income margin of 21.28%, indicating efficient management and profitability. These financial health indicators are crucial for Berkshire Hathaway and other investors as they assess the company's potential for sustained growth and value creation.
For those interested in a deeper analysis, InvestingPro offers additional tips for Liberty Media Corp, which can be found at https://www.investing.com/pro/LSXMA. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an extensive suite of tools and insights. Currently, there are five more InvestingPro Tips available for LSXMA, providing a comprehensive understanding of the company's investment potential.
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