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Richard Pzena Reduces Top Innovator TEL - AET, DLPH, NOC, Others

November 10, 2013 | About:
Sally Jones

Sally Jones

49 followers
The third quarter portfolio of Pzena Investment Management LLC, led by Richard Pzena, shows 130 stocks, 13 of them new, and a total value at $15.47 billion. The quarter-over-quarter turnover is 10%. The portfolio is weighted with financial services at 34.3%, consumer cyclical at 11.8% and energy at 8.4%. Guru Richard Pzena has averaged a return of 18.87% over 12 months.

Among his many third quarter sells, Pzena reduced his holding in TE Connectivity Ltd. (TEL), recently named a Top 100 Innovator by Thomson Reuters for the third consecutive year.

Here are four of Pzena’s high impact trades, as of Sept. 30, 2013. The holdings featured have in common some very exciting trading histories of high gains.



TE Connectivity Ltd. (TEL): Reduced

Impacts Portfolio: -0.91%

Current Shares: 5,961,910

Up 53% over 12 months, TE Connectivity Ltd., an electronics components company, has a market cap of $21.59 billion; its shares trade with a P/E ratio of 17.30. The dividend yield is 1.36%.

Company Earnings: The company reported financial results for the fiscal fourth quarter, ended Sept. 27, 2013, with net sales of $3.43 billion, up 2%. Adjusted earnings per share were $0.93, an increase of 22% and a fourth quarter record for the company. As of the end of the reporting quarter, the company’s free cash flow was $412 million. TEL returned $313 million to shareholders through share repurchases and dividends.

Guru Action: As of Sept. 30, 2013, Richard Pzena reduced his holding by 33.69%, selling 3,029,713 shares at an average price of $50.07 per share, gaining 4.3%.

The current share price is around $52.22, with a change from average up 4%.

Richard Pzena gained 177% on 21,871,186 shares bought at an average price of $18.88 per share. Selling, he gained 55% on 17,482,076 shares sold at an average price of $33.75 per share.

Numerous gurus hold TEL and there is very active insider selling.

Track historical pricing, revenue and net income:

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Northrop Grumman Corp. (NOC): Reduced

Impacts Portfolio: -1.62%

Current Shares: 890,221

Up 69% over 12 months, Northrop Grumman Corp., the aerospace and defense contractor, has a market cap of $24.58 billion; its shares trade with a P/E ratio of 13.20. The dividend yield is 2.10%.

Company Earnings: The company reported financial results for the third quarter of 2013 with net earnings of $497 million, marking an increase of 8% for the same quarter of 2012. Earnings of $2.14 per diluted share were also up from $1.82 per diluted share in the third quarter a year ago. In the reporting quarter, Northrup Grumman Corp. repurchased 8.1 million shares of its common stock for $753 million as well as 20.6 million shares for $1.7 billion, year-to-date.

Guru Action: As of Sept. 30, 2013, Richard Pzena reduced his holding by 76.96%, selling 2,973,384 shares at an average price of $92.43 per share, gaining 19.8%.

The current share price is around $110.73, with a change from average up 20%.

Overall, Richard Pzena has gained 110% on 4,223,150 shares bought at an average price of $52.62. Selling, he gained 55% on 8,068, 092 shares sold at an average price of $71.32 per share.

Look at Pzena’s remarkable trading history of gains:

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Check out the numerous guru stakeholders and recent insider activity at NOC.

Track historical pricing, revenue and net income:

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Delphi Automotive PLC (DLPH): Reduced

Impacts Portfolio: -1.42%

Current Shares: 2,971,364

Up 71% over 12 months, Delphi Automotive PLC, the auto parts company, has a market cap of $17.05 billion; its shares trade with a P/E ratio of 16.70. The dividend yield is 0.92%.

Company Earnings: The company reported financial results for the third quarter of 2013 with revenue of $4 billion, a 10% increase over the third quarter of 2012. Earnings of $0.87 per diluted share (GAAP) were also up, compared to $0.84 in the same quarter a year ago. Delphi’s adjusted EBITDA was $566 million for the reporting quarter, up from $483 million in the third quarter of 2012. The company shows $1.07 billion for operating cash, year-to-date.

Guru Action: As of Sept. 30, 2013, Richard Pzena reduced his holding by 59.08%, selling 4,289,988 shares at an average price of $55.56 per share, taking a loss of 0.3%.

The current share price is around $55.42, with a 0% change from average.

Overall, Richard Pzena bought 8,110,862 shares at an average price of $29.09, for a gain of 91%. Selling, he gained 2% on 5,139,498 shares sold at an average price of $54.12 per share.

There are numerous gurus holding DLPH. There is no insider activity found for 2013.

Track historical pricing, revenue and net income:

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Aetna Inc. (AET): Reduced

Impacts Portfolio: -0.54%

Current Shares: 754,946

Up 51% over 12 months, Aetna Inc.,a health care benefits company, has a market cap of $23.28 billion; its shares trade with a P/E ratio of 12.70. The dividend yield is 1.26%.

Company Earnings: The company reported financial results for the third quarter of 2013 with $12.9 billion in operating revenue, up 46% over the same quarter of 2012 at $8.90 billion. Aetna reported operating earnings of $561.8 million, a 7% increase over the same quarter of 2012. The company reported net income of $518.6 million for the reporting quarter, with earnings of $1.38 per share.

Guru Action: As of Sept. 30, 2013, Richard Pzena reduced his holding by 62.94%, selling 1,282,320 shares at an average price of $64.13 per share, taking a loss of 1.2%.

The current share price is around $63.35, with a change from average down 1%.

Richard Pzena bought 2,037,266 shares at an average price of $47.10, for a gain of 35%. Selling, he took a loss of 1% on 1,282,320 shares sold at an average price of $64.13 per share.

Four gurus made new buys of AET and one guru sold out in the second quarter of 2013. Check out the numerous guru stakeholders and recent insider activity.

Track historical pricing, revenue and net income:

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Guru Richard Pzena is the founder and co-CIO of Pzena Investment Management LLC, which he started in 1995.

Check out the complete portfolio update of Richard Pzena.



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (1 vote)

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