Warren Buffest’s investment conglomerate, Berkshire Hathaway (NYSE: BRK.A), bought shares in American hydrocarbon explorer Occidental Petroleum (NYSE: OXY). Following this purchase, the investment firm has become the largest shareholder in the petroleum company. Berkshire now owns over 25% of stake in the company.
Reuters reported in a recent regulatory filing, Berkshire Hathaway’s buying of Occidental Petroleum shares between June 26 and June 28. It bought 2.14 OXY stocks in exchange for $122.1 Million.
OXY stock attracted Berkshire’s attention in early 2022. The Omaha headquartered company stepped in to buy the shares given the rising oil prices in the wake of the Russia-Ukraine war.
Since then, the company accumulated OXY shares continuously.
According to Barron’s, Berkshire now holds 224.1 Million shares of Occidental Petroleum. Given the closing price of OXY stock on Wednesday, June 28, the shareholdings value is about $12.9 Billion.
Prior to the recent buying, Warren Buffet’s company bought 4.66 Million shares of Occidental worth $272.9 Million at the price of $58.85.
Even after holding 25.1% stakes in the company, Berkshire Hathaway has no plan to buy the company. In this year’s annual shareholder meeting in May, chairperson Buffet praised the management and business of Occidental. However, he stated there were no plans to acquire the company.
Occidental is primarily in the development and production of oil and natural gas liquids (NGLs). It operates for gathering, processing, transporting, storing, purchasing and marketing of petroleum products including oil, condensate, natural gas, NGLs, carbon dioxide (CO2) and power.
OXY Stock Price Analysis on Chart
Despite the giant investment firm increasing its shareholding power in the company, OXY stock price has hardly shown any enthusiasm. In the last trading session, the stock price moved upwards by only 0.58%. Currently, OXY stock is trading at $57.46.
OXY stock price is caged within a descending triangle after consistent consolidation phase. It took support from $55 and looks at the next resistance at $58, if it moves ahead. The OXY stock is almost at the level of 20-day exponential moving average.
The OXY stock price is currently in a crucial make-or-break condition inside an interesting declining pattern over the daily time frame chart. Analysts speculate OXY shares may lose control at the upper level to fall from the descending triangle pattern. However, investors need to wait for any directional change over the daily time frame chart to conclude the price momentum of OXY shares.
In addition, the price of OXY shares need to sustain to recover out of the declining pattern and initiate its recovery phase. Occidental stock price is below its 52-week high of $75 attained in November last year.
Technical Levels
Support Levels: $56.50 and $55.90
Resistance Levels: $58.50 and $59.00
Disclaimer
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/29/oxy-stock-stands-still-despite-berkshire-hathaways-25-stake/