Berkshire Hathaway (BRK.B) Rating Lowered to Hold at Zacks Investment Research

Berkshire Hathaway (NYSE:BRK.B) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “Shares of Berkshire Hathaway have outperformed the industry in a year. The company is poised for growth over a longer-term banking on sturdy insurance business. Its property and casualty insurance business generate maximum return on equity. The company’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position allows it to make earnings-accretive bolt-on buyouts. Demand for utilities is expected to rise in the future and drive earnings growth. Continued insurance business growth also fuels increase in float. A sturdy capital level provides further impetus. However, its exposure to catastrophe loss remains a concern. Huge capital expenses due to railroad operations pose concerns. Capital expenditure is estimated to be $9.8 billion in 2018.”

Separately, ValuEngine downgraded Berkshire Hathaway from a “buy” rating to a “hold” rating in a research report on Wednesday, December 5th.

Shares of BRK.B opened at $204.88 on Monday. The stock has a market cap of $504.52 billion, a PE ratio of 34.96, a price-to-earnings-growth ratio of 2.95 and a beta of 0.91. Berkshire Hathaway has a 12-month low of $184.75 and a 12-month high of $224.07.

Berkshire Hathaway (NYSE:BRK.B) last issued its quarterly earnings results on Saturday, November 3rd. The financial services provider reported $2.79 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.50 by $0.29. The firm had revenue of $63.45 billion during the quarter. Berkshire Hathaway had a return on equity of 6.20% and a net margin of 25.50%. On average, sell-side analysts forecast that Berkshire Hathaway will post 9.92 earnings per share for the current year.

Berkshire Hathaway Company Profile

Berkshire Hathaway Inc is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.

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