Warren Buffet's conglomerate firm, Berkshire Hathaway, has bought nearly $130 million of Occidental stock in recent days. Below is its stock outlook...

Overview

Occidental Petroleum Corporation is an American corporation that conducts petrochemical production in the United States, Canada, and Chile in addition to hydrocarbon exploration in the Middle East and the United States. It is registered in Delaware and has its headquarters in Houston.

Financials

Comparing the fiscal year of 2021 to 2022, revenue grew $11 billion and gross profit grew $8 billion. If we take a deeper look into the income statement and look at the net income, which is the profit after tax and operating expenses, it came in at a whopping $12 billion for the year of 2022. Compared to only $1.5 billion in 2021, a staggering increase year-on-year. As a result of this increase, the earnings per share were reported at $12.40. Over to the balance sheet, cash on hand has dipped a little, only just shy of $1 billion now versus the $2.7 billion in the previous year. Total assets saw a decline of $2.4 billion, however, total liabilities were also reduced and by $12 billion. Therefore, overshadowing the fall in assets and actually raising the total equity of the company by $10 billion.

Technicals

From a technical aspect, we can see that its share price is currently trading at around $58.26 a share. Looking at the daily timeframe, it has been in a bearish trend since November last year but it may have found a base at $55.51 (lower trendline). Support sits at $57.02 then at $56.34 and finally the base at $55.51. A break below $55.51 could see the price head lower towards $51.53. On the other hand, as last Thursday a slight rebound occurred, the resistance above now sits at $59.16 then at $61.08. A break above $61.08 could see a stretch towards the descending trendline resistance at $62.22, which will be a tough resistance point to overcome. The technical indicators are suggesting mixed signals at this moment in time as the MACD is negative but seems like it could be turning neutral-positive, and the RSI is negative as it reads 42.  

 

Interesting takeaway: Warren Buffet's Berkshire Hathaway has bought almost $130 million of Occidental stock in recent days. Rising its stake in the company to just shy of 24%.