Stock Analysis | Berkshire Hathaway B Outlook - Mixed Signals Amid Bearish Technicals

Market Snapshot

Bearish technical indicators and weak internals dominate the near-term outlook for Berkshire Hathaway B (BRK.B), despite a 5.22% price rise in recent sessions. Analysts remain optimistic, but caution is warranted due to diverging signals across technicals, fundamentals, and money flows.

News Highlights

Recent news has brought mixed signals for the broader financial sector. On one hand, Safe Harbor Financial announced a strategic partnership with Bennett Thrasher to expand cannabis industry services, signaling a potential tailwind for certain financial firms. Conversely, U.S. visa policy shifts under President Trump, including a ban on new student visas and potential revocation of Chinese student visas, could have wide-reaching implications for global education and financial markets.

Additionally, Universal Beteiligungs und Servicegesellschaft mbH and Liberty Square Wealth Partners LLC made new investments in The PNC Financial Services Group, indicating increased capital flows toward select financial stocks. However, these do not directly impact BRK.B and may reflect broader sectoral trends rather than specific sentiment toward Berkshire Hathaway.

Analyst Views & Fundamentals

Analyst consensus remains strong: The average rating over the past 20 days is 5.00 (simple mean), while the performance-weighted rating stands at 4.86. These figures represent a consistent and optimistic outlook, with UBS analyst Brian Meredith most active, issuing two "Strong Buy" ratings since July 2025. The ratings are aligned with the current 5.22% upward price trend, but recent technical weakness suggests caution.

Key fundamental factors and their internal diagnostic scores (0-10):

• Operating Revenue (YoY growth %): -12.94% (Internal diagnostic score: 3)
• Net Cash Flow from Operating Activities (YoY growth %): -13.16% (Internal diagnostic score: 3)
• Days Sales Outstanding: 118.99 days (Internal diagnostic score: 2)
• Net Profit Margin: -3896.56% (Internal diagnostic score: 1)
• Fixed Assets Turnover Ratio: 1177.82 (Internal diagnostic score: 2)

The mixed signals in fundamentals—strong cash flow but weak net profit—highlight the importance of watching upcoming earnings and assessing the sustainability of Berkshire Hathaway’s current earnings trajectory.

Money-Flow Trends

Money flows are diverging: While small investors show a positive trend, large institutional investors are trending negatively. The block inflow ratio stands at 47.05%, with overall inflow at 47.21%. This suggests that big money remains cautious, while retail investors may be buying dips. The fund-flow score for BRK.B is 7.83 (good), indicating strong inflows at the retail level but divergence at the institutional level.

Key Technical Signals

Technical analysis of BRK.B over the last 5 days is clearly bearish, with 2 bearish vs 0 bullish indicators. Here’s a breakdown of key signals:

• Williams %R Overbought: Internal diagnostic score: 2.45 — historically, this signal has yielded an average return of -0.18% with a 46.97% win rate.
• Marubozu White: Internal diagnostic score: 1.33 — a bearish signal with a weak performance record (avg. return: -0.14%, win rate: 33.33%).

These signals have appeared repeatedly from August 18–22, 2025, suggesting a strong bearish momentum. The overall technical score is 1.89, with a clear recommendation to avoid BRK.B for now.

Conclusion

Investors should consider waiting for a pull-back or stronger technical confirmation before entering or adding to positions in BRK.B. While fundamentals and analyst ratings look generally positive, the current technical weakness and institutional caution suggest risks outweigh short-term opportunities. Watch for earnings updates and potential reversals in key indicators like the Marubozu White and Williams %R to assess trend shifts.