Warren Buffett adds more Occidental Petroleum as energy stock gets upgrade

Warren Buffett added more Occidental Petroleum (OXY) stock to his Berkshire Hathaway (BRKB) portfolio in recent days, strengthening his stake in the American energy company. Meanwhile, OXY stock was upgraded on Tuesday.


Berkshire Hathaway bought about 3.6 million shares of Occidental, according to a regulatory filing late Monday. After the purchases, Buffett now has a 23.5% stake in the Houston-based energy company, or roughly 211 million shares.

Buffett bought his OXY shares between March 23 and March 27 at prices ranging from 58.28-59.62. This comes after Buffett bought 8 million shares of OXY stock between March 13 and March 16. Berkshire Hathaway bought about 6 million shares of Occidental Petroleum stock earlier this month.

Through the latter half of 2022, Buffett was on an OXY stock spree, with the billionaire investor targeting stocks in the $57-$61.5 price range.

Warren Buffett and OXY Stock

The stock rose 4.3% to around 62.23 on Tuesday during market trading. On Monday, OXY stock closed 2.5% higher at 59.65. Buffett made OXY stock purchases on Monday, with price targets between 58.61-59.62.

On Tuesday, TD Cowen upgraded Occidental to “outperform” up from a “market perform” rating. Furthermore, analyst David Deckelbaum has an OXY share price target of 70, up from 63.

Deckelbaum wrote that Occidental offers “superior” exposure to crude oil pricing, capital structure shifts, a favorable free cash yield and “captive buying support” from Buffett.

Meanwhile, on Monday Morgan Stanley ( MS ) analyst Devin McDermott lowered the firm’s OXY price target to 61, down from 71, and maintained an “Equal Weight” rating on the stock.

Chevron (CVX), another Warren Buffett favorite, was up 1.2% on Tuesday. CVX shares closed up 1% at 157.65 on Monday. Berkshire Hathaway also owns $27 billion in Chevron stock.

Follow Kit Norton on Twitter @KitNorton for more coverage.


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