Shares that track Liberty Sirius XM’s stock bounced Tuesday, after Warren Buffett’s investment vehicle Berkshire Hathaway Inc. disclosed that it boosted its stake by nearly $100 million.
Buffett has now spent roughly $465.4 million to bulk up his stake Liberty Sirius XM Series C and Series A shares. He now owns about 30% of Liberty SiriusXM’s outstanding shares.
The Series C shares rose 1.3% in premarket trading and the Series A shares gained 0.9%. Both stocks closed at four-month lows on Monday, after falling 10% so far in April.
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The stocks track the shares of the subscription-based satellite-radio service Sirius XM Holdings Inc. as Liberty SiriusXM’s business is that it owns a controlling stake in Sirius XM. The tracking stocks are seen as being valued at a discount to SiriusXM.
Meanwhile, Sirius XM’s stock closed Monday at an eight-year low, and has dropped 12.9% in April.
In Form 4 filings with the Securities and Exchange Commission late Monday, Berkshire Hathaway said it spent $30.69 million to buy 1.12 million Liberty SiriusXM Series A shares, at a weighted average price of $27.3325.
The company also paid $66.42 million to buy 2.42 million Series C shares, at a price of roughly $27.405.
In total, he spent $97.11 million.
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Berkshire now owns 33.88 million Series A shares and 67.91 million Series C shares.
The Series A shares have voting rights, while the Series C shares don’t. There are also Series B shares, that have 10 votes per share.
Year to date, the Series A shares have shed 7.2% through Monday and the Series C shares have lost 7.4%. In comparison, Sirius XM’s stock has tumbled 38.2% this year, Berkshire’s Class B shares have rallied 16.6% and the S&P 500 index has advanced 9.1%.
