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Berkshire Hathaway Inc. (BRK.B), headquartered in Omaha, Nebraska, is a diversified holding company that owns businesses across insurance and reinsurance, freight rail transportation, utilities and energy, manufacturing services, and retailing. Valued at $883.31 billion by market cap, the company is chaired by prominent investor Warren Buffett, widely regarded as one of the world’s most successful investors.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and BRK-B fits that description. Its market value above this mark is not surprising, considering its presence across different business verticals.
The conglomerate has fallen 4.7% from its 52-week high of $430, which it hit on Feb. 26. Shares of BRK.B are up 2.3% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 0.6% gains over the same time frame.
Longer term, BRK.B shares rose 24.7% over the past year, and in 2024, the stock is up 14.9%. By contrast, the DOWI is up 3% on a YTD basis and 15.6% over the past 52 weeks.
To confirm the bullish price trend, BRK.B has been trading above its 50-day moving average since early June and above its 200-day moving average since late October 2023.
BRK.B’s overall outperformance can be attributed to the strong performance of its subsidiary businesses. The company’s operating earnings grew by 39% year over year in Q1 due to the strength of its insurance business, and its underwriting income nearly tripled over the prior-year quarter. Its insurance investment income increased 32% year over year to $2.60 billion, benefiting from the high interest rates. BRK.B trimmed its stake in Apple Inc. (AAPL) by 13%. The company reported a cash balance of $188.99 billion during the first quarter, up from $167.60 billion at the end of 2023.
With its recent outperformance compared to the DOWI, analysts remain optimistic about BRK.B’s prospects. The stock has a consensus rating of “Moderate Buy” from the four analysts covering it, and the mean price target of $490 is a 19.6% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
