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Top Five Guru-Held Technology Stocks

September 26, 2013 | About:
Monica Wolfe

Monica Wolfe

131 followers
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which technology companies are held by the most gurus. As of the second quarter, the following five tech stocks are held by the largest number of gurus.

Microsoft (MSFT)


As of the close of the second quarter there were 55 guru owners of Microsoft. During the past quarter there were 20 gurus buying shares of MSFT and there were 34 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 137.09%.

The top three guru shareholders of Microsoft:

1. Dodge & Cox: 77,260,349 shares, representing 0.93% of the company’s shares outstanding and 3.2% of the fund’s total portfolio.

2. PRIMECAP Management: 63,165,491 shares, representing 0.76% of the company’s shares outstanding and 3.1% of the fund’s total portfolio.

3. Jeff Ubben: 57,750,000 shares, representing 0.69% of the company’s shares outstanding and 20.5% of his total assets managed.

Microsoft generates revenue by developing, manufacturing, licensing and supporting a wide range of software products and services for many different types of computing devices.

Microsoft’s historical revenue and net income:

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The company recently declared a dividend of $0.28 per share. This dividend represents an increase of $0.05 per share or a 22% increase from its previous dividend.

The Peter Lynch Chart suggests that the company is currently undervalued:

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The analysis on Microsoft reports that the price is near a five-year high, its interest coverage is comfortable and its revenue has shown predictable revenue and earnings growth.

Microsoft has a market cap of $272.73 billion. Its shares are currently trading at around $32.74 with a P/E ratio of 12.70, a P/S ratio of 3.50 and a P/B ratio of 3.50. The company had an annual average earnings growth of 14.4% over the past ten years.

GuruFocus rated Microsoft the business predictability rank of 3.5-star.

Google (GOOG)

As of the close of the second quarter there were 47 guru owners of Google. During the past quarter there were 16 gurus buying shares of GOOG and there were 27 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 113.63%.

The top three guru shareholders of Google:

1. PRIMECAP Management: 3,058,842 shares, representing 0.92% of the company’s shares outstanding and 3.9% of the fund’s total assets managed.

2. Frank Sands: 2,776,485 shares, representing 0.83% of the company’s shares outstanding and 8.2% of his total portfolio.

3. Chris Davis: 2,678,747 shares, representing 0.8% of the company’s shares outstanding and 6% of his total portfolio.

Google is a global technology company engaged in improving the ways people connect with information. The company's business is mainly focused around the following key areas: search, advertising, operating systems and platforms, enterprise and hardware products.

Google’s historical revenue and net income:

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The company’s most recent quarterly report highlighted:

· Revenues up 19% to $14.11 billion.

· GAAP net income of 3.23 billion, compared to $2.79 billion from last year.

· GAAP EPS was $9.54 on 338 million diluted shares outstanding, up from $8.42 last year.

The analysis on Google reports that the company’s price is near a 10-year high, the company has issued $5 billion of debt over the past three years, its interest coverage is comfortable and it’s shown signs of predictable revenue and earnings growth.

The Peter Lynch Chart suggests that Google is currently overvalued:

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Google has a market cap of $295.22 billion. Its shares are currently trading at around $886.50 with a P/E ratio of 26.40, a P/S ratio of 5.30 and a P/B ratio of 3.80. The company had an annual average earnings growth of 37% over the past 10 years.

GuruFocus rated Google the business predictability rank of 3-star.

Cisco Systems (CSCO)

As of the close of the second quarter there were 46 guru owners of Cisco Systems. During the past quarter there were 23 gurus buying shares of CSCO and there were 20 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 69.58%.

The top three guru shareholders of Cisco Systems:

1. Donald Yacktman: 52,890,691 shares, representing 0.99% of the company’s shares outstanding and 6.1% of his total assets managed.

2. Jeremy Grantham: 49,830,519 shares, representing 0.93% of the company’s shares outstanding and 3.2% of his total portfolio.

3. Jean-Marie Eveillard: 43,088,314 shares, representing 0.81% of the company’s shares outstanding and 3.3% of his total portfolio.

Cisco Systems sells networking and communications products and provides related services. The company's two main products are switches and routers, but Cisco essentially touches everything in the networking industry, from security to storage to application switching.

Cisco’s historical revenue and net income:

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The analysis on Cisco reports that the company’s price is near a three-year high, that over the past three years they have issued $939 million of debt, the company has shown predictable revenue and earnings growth and the dividend yield is at a three-year high.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Cisco Systems has a market cap of $128.14 billion. Its shares are currently trading at around $23.90 with a P/E ratio of 12.70, a P/S ratio of 2.70 and a P/B ratio of 2.20. The company had an annual average earnings growth of 8.4% over the past 10 years.

GuruFocus rated Cisco the business predictability rank of 3.5-star.

Apple (AAPL)

As of the close of the second quarter there were 43 guru owners of Apple. During the past quarter there were 27 gurus buying shares of AAPL and there were 22 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 72.04%.

The top three guru shareholders of Apple:

1. David Einhorn: 2,397,706 shares, representing 0.26% of the company’s shares outstanding and 17.8% of Einhorn’s total portfolio.

2. Ken Fisher: 1,532,339 shares, representing 0.17% of the company’s shares outstanding and 1.6% of his total assets managed.

3. Jeremy Grantham: 1,257,717 shares, representing 0.14% of the company’s shares outstanding and 1.3% of his total portfolio.

Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions. The company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud and a variety of accessory, service and support offerings.

Apple’s historical revenue and net income:

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The company recently released its iPhone 5s and 5c which are reportedly doing really well in the U.S. market.

The Peter Lynch Chart suggests that Apple is currently undervalued:

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The analysis on Apple reports that the company’s revenue has slowed over the past year, its operating margin is expanding and its asset growth is faster than its revenue growth.

Apple has a market cap of $441.11 billion. Its shares are trading at around $485.54 with a P/E ratio of 12.10, a P/S ratio of 2.70 and a P/B ratio of 3.60. The company had an annual average earnings growth of 81.6% over the past ten years.

GuruFocus rated Apple the business predictability rank of 4.5-star.

Oracle Corporation (ORCL)

As of the close of the second quarter there were 39 guru owners of Oracle. During the past quarter there were 29 gurus buying shares of ORCL and there were 10 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 76.74%.

The top three guru shareholders of Oracle:

1. Jeremy Grantham: 49,839,220 shares, representing 1.08% of the company’s shares outstanding and 4% of his total assets managed.

2. Meryl Witmer: 37,704,501 shares, representing 0.81% of the company’s shares outstanding and 6.2% of her total portfolio.

3. PRIMECAP Management: 24,270,386 shares, representing 0.52% of the company’s shares outstanding and 1.1% of the fund’s total portfolio.

Oracle is a provider of enterprise software and a provider of computer hardware products and services. The company provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management.

Oracle’s historical revenue and net income:

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The company has announced three new or newly improved products today. They announced a Oracle database in-memory option to accelerate analytics, data warehousing reporting and OLTP. They also announced that that the company had enhanced its in-memory applications with new Oracle database in-memory option. Lastly, the company unveiled its fastest and scalable server and engineered system, the SPARC M6-32 and Oracle SuperCluster M6-32. To find more about these products click here.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Oracle has a market cap of $157.17 billion. Its shares are currently trading at around $33.94 with a P/E ratio of 15.00, a P/S ratio of 4.30 and a P/B ratio of 3.60. The company had an annual average earnings growth of 19.8% over the past ten years.

GuruFocus rated Oracle the business predictability rank of 5-star.

You can check out other top held sectors of the market by using the Aggregated Screener here.

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Rating: 3.0/5 (5 votes)

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