Berkshire Shares Jump on Q2 Beat and $7.8B in Buybacks, but Geico Stumbles
BRKA is trading near its 52-week low of $693,021.02 (13% above the low).
Summary
Berkshire's Q2 operating profit rose 16% to $12.98B, beating expectations, and the company bought back $4.5B of stock in Q2 plus another $3.3B in July—a pace matching Buffett's peak years. Shares rose as much as 3.3% Monday, closing at $793,815.21, even as the broader market fell. However, CFRA analyst Cathy Seifert called Geico's quarter 'absolutely abysmal,' with underwriting profit down 45% to $994M on higher claims and ad spending. The buyback acceleration signals management sees value, but Geico's struggles raise questions about its competitive position against Allstate and Progressive. Cash fell to $364.7B from a record $380.2B, partly due to a $10B Alphabet investment.
At the time of this announcement, BRKA was trading at $780,000.00 on NYSE in the Finance sector, with a market capitalization of approximately $1T. The 52-week trading range was $693,021.02 to $806,102.81. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.