Berkshire Hathaway (BRK.B) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Berkshire Hathaway (NYSE:BRK.B) from a hold rating to a sell rating in a report released on Monday morning, Zacks.com 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.”

Shares of NYSE:BRK.B opened at $204.63 on Monday. The company has a market cap of $499.63 billion, a PE ratio of 20.36, a P/E/G ratio of 2.79 and a beta of 0.79. Berkshire Hathaway has a twelve month low of $184.75 and a twelve month high of $224.07.

Berkshire Hathaway (NYSE:BRK.B) last issued its quarterly earnings data on Saturday, February 23rd. The financial services provider reported $2.32 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.09. The business 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%. As a group, research analysts expect 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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