Occidental Petroleum Corporation (NYSE:OXY) shares rose nearly 4% to $61.76 on Tuesday after a regulatory filing showed that Warren Buffett’s Berkshire Hathaway purchased an additional 3.7 million shares in Occidental, one of the largest oil producers in the US, between March 23 and March 27, 2023, valued at about $216 million.
Berkshire also purchased 8 million shares of OXY stock between March 13 and March 16, as well as adding about 6 million shares earlier in the month.
Following its most recent purchase, Berkshire Hathaway now owns a 23.5% stake in the Houston-based energy producer.
TD Cowen analysts upgraded Occidental to ‘Outperform’ from ‘Market Perform’ following the revelation, while increasing the target price to $70 per share from $63, saying Occidental offers “superior” exposure to crude pricing, capital structure shifts, a favorable free cash yield and “captive buying support” from Buffett.
Occidental Petroleum recently boosted its annual dividend to $0.72 per share from $0.52 per share.
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