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Warren Buffett’s company saw both classes of its shares set intraday 52-week highs in the past week.
Drew Angerer/Getty Images
Berkshire Hathaway
stock, both classes, set 52-week intraday highs this past Friday.
Berkshire Hathaway (ticker:
BRKb
) Class B stock had a modest 2022, rising 3.3%, and the pricey Class A stock did a little better, gaining 4.0%. But both far outperformed the
S&P 500 index,
which slid 19% last year.
This year, the
S&P 500
has turned the tables, rising 12% on a surge in the big tech names in the index, which came close to setting its own 52-week intraday high Friday. Class B shares of
Warren Buffett’s
company have gained 8.5%, while the Class A gained 9.0%.
Nonetheless, Berkshire Hathaway Class B and A stock set 52-week intraday highs of $337.59 and $515,000, respectively. That’s still below their record highs, both set on March 29, 2022, of $362.10 and $544,389.00, respectively.
What is behind the rise in Berkshire Hathaway stock? The typical things: strong earnings and steady stock buybacks. The first quarter, reported in February, came up short, but the fourth-quarter report in May was back on track.
Hain Celestial Group
stock (HAIN), on the other hand, tumbled to a more-than-decade low in the past week, hitting $11.73 on Thursday. Shares of the organic and natural-products maker haven’t traded at that level since September 2010, adjusted for a 2014 two-for-one stock split.
Hain stock tumbled in early February after the company reported a mixed fiscal second quarter. A disappointing fiscal-third report and reduced guidance in May dealt more body blows to the shares.
Hain stock has dropped 27% so far this year. Even a bull on the shares had to cut estimates. William Blair analyst Jon Andersen slashed his estimates for earnings before interest, taxes, depreciation, and amortization for 2023 and 2024. He kept an Outperform rating on Hain stock in a May 9 report.
“Overall, we continue to see 2023 as a ‘reset’ year with the establishment of more-robust cost-out programs and enhanced marketing and brand building investments putting the company on a path to restore sales and earnings growth in fiscal 2024,” Andersen wrote.
Speaking of a path to restoration,
Blue Apron Holdings
(APRN) stock staged a one-day revival, rocketing 67% this past Friday, the day after setting a record intraday low.
It was an everything-but-the-kitchen-sink sort of week for the meal-kit company. A one-for-12 reverse stock split was effective at Wednesday’s close, a measure taken in order for Blue Apron to come into compliance with a NYSE share-price listing rule to maintain an average closing share price of at least $1.00 over any 30 trading-day period. Shares slid on Thursday to a split-adjusted intraday low of $4.91.
On Friday, Blue Apron completed a deal valued at up to $50 million to transfer its operational infrastructure to FreshRealm, which makes meal kits for
Kroger
(KR), Publix, and
Walmart
(WMT). The deal includes Blue Apron’s fulfillment centers, equipment, and related personnel. Blue Apron said it received $25 million in cash up front, and “eliminated its debt.”
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
Source: https://www.barrons.com/articles/warren-buffett-berkshire-hathaway-stock-81e3bca7?siteid=yhoof2&yptr=yahoo