Berkshire Hathaway Waves Goodbye to Airline Sector

The company also reported an earnings and revenue miss

Deputy Editor
May 4, 2020 at 10:49 AM
facebook twitter linkedin


Berkshire Hathaway Inc. (NYSE:BRK.A) sent airline stocks tumbling after CEO Warren Buffet announced that the conglomerate sold its entire stakes in the four largest U.S. airlines -- Delta Air Lines (DAL), American Airlines (AAL), Southwest Airlines (LUV), and United Airlines (UAL). The company also reported a first-quarter earnings and revenue miss, with its reported profits of $3,617.38 per share and revenue of $61.27 billion both lower than analyst estimates. At last check, BRK.A is down 2.4% to trade at $267,468. 

On the charts, BRK.A has been pushing up against pressure at the $290,000 region, which coincides with the stock's 50-day moving average. The stock is now eyeing its third consecutive daily loss. Currently hovering just below its month-over-month breakeven, the equity is down 21.5% year-to-date. 

Amid the news, BRK.A earned a price target hike from KBW to $325,000 from $310,000, and one price target cut by UBS to $350,000 from $358,000. Of two analysts in coverage, one sports a "buy" and the other a "hold."

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners