Berkshire Hathaway (BRK.B) Downgraded by Zacks Investment Research

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Zacks Investment Research lowered shares of Berkshire Hathaway (NYSE:BRK.B) from a hold rating to a sell rating in a research report released on Monday, reports.

According to Zacks, “Berkshire Hathaway’s shares have outperformed its industry in a year’s time.  Its exposure to catastrophe loss remains a concern as its property and casualty insurance business generates maximum return on equity. Also, huge capital expenses due to railroad operations pose concerns. Neverheless, it is poised for growth over the long term on sturdy insurance business. 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.”

NYSE:BRK.B opened at $202.98 on Monday. The stock has a market cap of $504.62 billion, a PE ratio of 20.20, a price-to-earnings-growth ratio of 2.82 and a beta of 0.79. Berkshire Hathaway has a 52 week low of $184.75 and a 52 week high of $224.07.

Berkshire Hathaway (NYSE:BRK.B) last released its quarterly earnings data on Saturday, February 23rd. The financial services provider reported $2.32 EPS for the quarter, topping analysts’ consensus estimates of $2.23 by $0.09. The company had revenue of $63.71 billion during the quarter. Berkshire Hathaway had a net margin of 10.73% and a return on equity of 6.83%. On average, research analysts anticipate that Berkshire Hathaway will post 10.4 earnings per share for the current fiscal year.

About Berkshire Hathaway

Berkshire Hathaway Inc, through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. It provides property and casualty insurance and reinsurance, as well as life, accident, and health reinsurance; and operates railroad systems in North America. The company also generates, transmits, and distributes electricity primarily from solar, wind, geothermal, and hydro sources; operates natural gas distribution and storage facilities, interstate pipelines, and compressor and meter stations; and holds interest in coal mining assets.

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