26.06.201722:47:00UTC+00Store Capital Sees Biggest One-Day Gain after Buffett Investment

Shares of Store Capital Corp. notched their biggest one-day gain since going public, after the firm announced a $377 million investment by a subsidiary of Warren Buffett's Berkshire Hathaway.

Store Capital, a real-estate investment trust, disclosed Berkshire has bought 18.6 million of its shares valued at $20.25 per piece in a private placement, giving it a holding of 9.8 percent. This makes Berkshire the company's third-biggest shareholder, Factset data showed. Vanguard is the company's major shareholder with a total of a 15.25 percent stake. Fidelity comes in second place with a 12.96 percent stake.

Under the terms of the agreement, Berkshire is not allowed to sell any of the shares it holds for six months.

Robert Stephenson, an analyst for Janney Capital noted that the price at which the shares were purchased denoted a 2.5 percent discount to the closing price last week. He added that retail buyers and others who follow Buffet to flock to the stock in the coming week, but noted that given the lack of interest in the name until today, the sustainability of the stock's gain is questionable.