Berkshire Hathaway Picks Up More of Warren Buffett's Favorite Media Stock

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While Berkshire Hathaway Inc. (NYSE: BRK-B) was a net seller of stocks in the second quarter, it did just resume acquiring shares of Warren Buffett’s favorite media stock. And those shares were somewhat of a bargain compared to what Berkshire Hathaway paid for them earlier this year.

Yet that was not the only significant insider purchase of the past week. Insiders also focused on three biotech stocks, two of which had public offerings of shares. All three of those stocks have been running higher.

Let’s take a quick look at these notable transactions in the past week.

Is Insider Buying Important?

A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will rise and they want to profit from it. Thus, insider buying can be an encouraging signal for potential investors. This is all the more so during times of uncertainty in the markets, and even when markets are near all-time highs.

With the second-quarter earnings-reporting season underway, some insiders are prohibited from buying or selling shares for now. Below are some of the most notable insider purchases that were reported recently, starting with the largest and most prominent.

Sirius XM

• Buyer(s): 10% owner Berkshire Hathaway
• Total shares: more than 5.0 million
• Price per share: $20.36 to $21.82
• Total cost: almost $106.5 million

Berkshire Hathaway acquired a notable number of Sirius XM Holdings Inc. (NASDAQ: SIRI) shares last year and early this year, and it has returned to further increase its stake. That is up to over 124.8 million shares, or about 37% of the company.

Sirius XM just posted weak quarterly results last month, and shares retreated afterward. The stock is 7.8% lower in the past week and down 18% from six months ago. It has underperformed the S&P 500 in both periods. Analysts have a consensus price target of $23.64, which suggests they see 8.2% upside in the next 12 months. Just five of 14 analysts who follow the stock recommend buying shares.

Note that Berkshire Hathaway also just trimmed its stakes in DaVita Inc. (NYSE: DVA) and Verisign (NASDAQ: VRSN).

Larimar Therapeutics

• Buyer(s): a director
• Total shares: less than 9.4 million
• Price per share: $3.20
• Total cost: $30.0 million

This buyer bought into a public offering of Larimar Therapeutics Inc. (NASDAQ: LRMR) shares. The clinical-stage biopharmaceutical company raised $69.0 million to support the development of its pipeline candidates and for working capital and general corporate purposes.

The share price is 11.9% higher than a month ago, but also 51.8% lower than a year ago. The consensus price target is way up at $20.60, in a wide range of $10 to $40. Of 11 analysts who follow the stock, all of them recommend buying shares.

Note that this buyer is also a beneficial owner of ARS Pharmaceuticals Inc. (NASDAQ: SPRY) and recently trimmed that stake.

Prime Medicine

• Buyer(s): a director and 10% owner GV 2021 GP
• Total shares: more than 4.5 million
• Price per share: $3.30
• Total cost: nearly $15.0 million

Cambridge, Massachusetts-based Prime Medicine Inc. (NASDAQ: PRME) also had a public offering of shares, which raised $144.2 million to advance its robust pipeline of prime editing genetic therapies. Furthermore, in July, the Cystic Fibrosis Foundation committed $24 million for Prime Medicine.

In the past three months, the stock has surged 168.5%, far outperforming the broader markets. Yet, it is still 6.3% lower than a year ago. In the next year, analysts anticipate the share price rising 71.2% to their mean price target of $7.36. Their consensus recommendation is to buy shares.

Note that GV 2021 GP is an entity associated with Alphabet Inc. (NASDAQ: GOOGL), and it also just acquired some Alphabet shares.

Aurinia Pharmaceuticals

• Buyer(s): a director
• Total shares: 1.3 million
• Price per share: $9.23 to $11.80
• Total cost: almost $13.6 million

Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) last week posted quarterly results that fell short of expectations on the bottom line but also showed strong revenue growth. The stock rose 26.7% in the past week and hit a 52-week high of $11.80. Shares are changing hands for 113.8% more than a year ago.

Six out of seven analysts recommend buying shares, though their mean price target of $11.71 indicates they see no upside in the next 52 weeks—until they begin to lift their targets. RBC raised its target price to $9, and H.C. Wainwright initiated coverage with a street-high $17 target.

Note that this buyer also scooped up many shares back in March, at a time when other insiders were selling. His stake is now up to more than 11.3 million shares.

And Other Insider Buying

In the past week, some insider buying was reported at Align Technology, Alphabet, Amkor Technology, Asana, Charter Communications, Fortive, Matador Resources, Phillips 66, Sonos, Synovus Financial, Tilray Brands, and UPS as well.

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