In a recent transaction, Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK.A) has sold a significant amount of its holdings in Liberty Media Corp (NASDAQ:FWONA) (NASDAQ:LSXMA). Warren E. Buffett's conglomerate offloaded shares in the media company, with sales totaling over $2.2 million.
The series of transactions, which took place on June 13 and June 14, involved the sale of Liberty Media's Series A Liberty Live Common Stock. On the first day, 52,911 shares were sold at a weighted average price of $34.0604, with prices ranging from $33.7500 to $34.6400. The following day saw additional sales of 11,252 shares at an average price of $33.0199, with individual transactions occurring between $32.7000 and $33.5000, and 1,167 shares at a fixed price of $34.05.
Following these transactions, Berkshire Hathaway's ownership in Liberty Media Corp has been adjusted to 4,986,588 shares. It's important to note that a portion of these shares, specifically 3,974,890, are held by subsidiaries of Berkshire Hathaway, including Government Employees Insurance Company, National Fire & Marine Insurance Company, and National Indemnity Company.
Moreover, 1,011,698 shares are owned by pension plans of Berkshire's subsidiaries, such as the Berkshire Hathaway Consolidated Pension Plan, BNSF Master Retirement Trust, and Precision Castparts Corp. Master Trust. Both Berkshire Hathaway and Warren E. Buffett have disclaimed beneficial ownership of these shares, except to the extent of their pecuniary interest.
The transactions were disclosed in a regulatory filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders and major shareholders. These filings are a routine part of monitoring and reporting the buying and selling of shares by executives and key stakeholders.
Investors and analysts often scrutinize such transactions for insights into the confidence levels of company insiders regarding the firm's prospects, although the reasons behind such sales can vary widely. The sale by Berkshire Hathaway comes as part of its portfolio management activities and offers a glimpse into the investment decisions made by one of the world's most renowned investors.
InvestingPro Insights
As Berkshire Hathaway adjusts its holdings in Liberty Media Corp, investors keeping an eye on the market may gain additional insights by considering the financial health and performance metrics of the companies involved. According to InvestingPro data, Liberty Media Corp (referred to by the ticker LLYVA) has experienced some challenges, as evidenced by a negative adjusted P/E ratio of -22.23 and a price/book ratio of -16.97, both as of the last twelve months ending Q4 2023. Additionally, the company's operating income and EBIT for the same period stood at a loss of $11 million USD.
InvestingPro Tips suggest that Liberty Media Corp's financial situation is characterized by weak gross profit margins, which could be a concern for potential investors. However, on the positive side, the company's liquid assets exceed its short-term obligations, providing some financial stability. It's also worth noting that Liberty Media Corp has not been profitable over the last twelve months and does not pay a dividend to shareholders, which may influence investment decisions.
For those considering a deeper analysis, InvestingPro offers a comprehensive list of additional tips to help evaluate the investment potential of Liberty Media Corp. To access these insights and make more informed decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/LLYVA to explore the full range of available tips and metrics.
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