Occidental Petroleum Corporation (NYSE: OXY) is in focus on Thursday after the legendary investor Warren Buffett increased his stake in the oil and gas company.
The “Oracle of Omaha” spent another $466.7 million to load up on 7.9 million shares of the energy company this week.
Today’s disclosure arrives only days after Buffett’s meeting with Vicki Hollub – the Chief Executive of Occidental Petroleum. His Berkshire Hathaway scooped up 5.8 million shares of the energy company over the past two weeks as well.
In total, the Nebraska-based conglomerate now owns 23.1% of “OXY” that suggests Buffett remains bullish on Occidental Petroleum even though it reported weaker-than-expected results for its fourth financial quarter in February.
The oil stock currently pays a dividend yield of 1.24%.
Recent concerns of a deceleration in global economic growth have weighed on WTI futures that now sit at under $68 a barrel.
To that end, Occidental Petroleum stock was seen trading about 15% down (versus their year-to-date high) at the start of March – a discount that Buffett used to further grow his stake in the hydrocarbon exploration company.
Remember that his Berkshire Hathaway has regulatory approval to own up to 50% of “OXY”. It currently holds $10 billion worth of the company’s preferred stock as well and has warrants to purchase another 83.9 million of its common shares for $5.0 billion.
Those interested in following his footsteps and buying Occidental Petroleum stock should also know that Wall Street sees upside in it to $71 on average – up more than 20% from here.
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