Warren Buffett's Berkshire Hathaway Boosts Liberty SiriusXM Stake

After Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) came under the spotlight for disclosing it sold stock in Delta Air Lines Inc DAL, Southwest Airlines Co LUV and other airlines, Warren Buffett has made a few new, lesser-known investments.

What’s Going On?

Since the end of May, Berkshire Hathaway increased its stake in Liberty SiriusXM Group LSXMK, in 300,000 share chunks.

"ORTEX Analytics insider data shows that Berkshire Hathaway has since the 21st of May bought almost 4.4 million shares in Liberty Media for just over $151 million," ORTEX Analytics co-founder Peter Hillerberg told Benzinga. "Last time Berkshire Hathaway was buying Liberty Media, in May 2017, they saw a return of almost 20% in the next two months.”

Image showing Berkshire Hathaway’s historical purchases in Liberty Sirius XM Group.

Additionally, short-interest data provided by ORTEX also shows that shares on loan, an indication of how short investors are, fell sharply after Buffet’s firm began buying shares of the company.

Image showing Liberty Sirius XM Group short-interest data.

Context And Action

On May 20, Morgan Stanley lowered its price target on Liberty SiriusXM Group while maintaining an Overweight rating on the stock. The rating adjustment came alongside news that the company strengthened its balance sheet in the first quarter of 2020.

"We are operating in unprecedented times, impacting the Liberty portfolio across the globe. Our companies in the live event space have been working with players, teams, bands, fans, and government authorities to operate during social distancing and safely provide unique and engaging experiences," Liberty Media President and CEO Greg Maffei said in a statement on the firm’s first-quarter 2020 financial results.

"We were pleased to complete the reattribution between Formula One Group and Liberty SiriusXM Group in April. Liberty SiriusXM now includes Live Nation, a complementary business and an established leader in the entertainment space. SiriusXM posted solid first-quarter results and the business is proving resilient. Formula One Group has a strengthened balance sheet which will enable us to enhance the F1 business and be opportunistic."

To learn more about this development and get access to similar insights, click here to visit ORTEX Analytics.

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