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Top Guru-Held Tech Stocks as of the Third Quarter

December 11, 2013 | About:
Monica Wolfe

Monica Wolfe

119 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 companies from the technology sector were held by the highest number of gurus. The following five companies come from this sector, are based actually all based out of the United States and are held by the largest number of gurus.

Microsoft (MSFT)


The most gurus hold on to Microsoft Corporation. As of the close of the third quarter there were 56 gurus that held a position in the company. During the third quarter there 28 gurus buying shares of Microsoft and there were 30 making sells. These gurus hold a combined weighting of 151.21%.

Top guru shareholders of MSFT:

1. Dodge & Cox: 86,524,349 shares, representing 1.04% of the company’s shares outstanding.

2. Jeff Ubben: 66,865,530 shares, representing 0.8% of the company’s shares outstanding.

3. PRIMECAP Management: 62,747,091 shares, representing 0.75% of the company’s shares outstanding.

Microsoft develops, manufactures, licenses and supports a wide range of software products and services for many different types of computing devices.

Microsoft’s historical revenue and net income:

1386798284013.png

The analysis on Microsoft reports that the company’s price is near a 10-year high, its gross and operating margins have been in a 5-year decline and its interest coverage is comfortable, meaning they have enough cash to cover all debt. The company has also shown predictable revenue and earnings growth.

The Peter Lynch chart shows that Microsoft currently appears to be undervalued:

1386798332683.png

Microsoft has a market cap of $314.3 billion. Its shares are currently trading at around $37.65 with a P/E ratio of 14.00, a P/S ratio of 4.00 and a P/B ratio of 4.00. The company has a dividend yield of 2.60%. The company has also seen average earnings growth of 12.5% over the past ten years.

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

Google (GOOG)

The second most guru-held technology-based stock is Google. As of the third quarter there were 45 gurus holding on to Google, with 18 gurus making buys and 24 gurus making sells over the quarter. These gurus hold a combined weighting of 120.20%.

The top guru shareholders of Google:

1. PRIMECAP: 3,058,842 shares, representing 0.92% of the company’s shares outstanding.

2. Frank Sands: 2,776,485 shares, representing 0.83% of the company’s shares outstanding.

3. Chris Davis: 2,666,808 shares, representing 0.8% of the company’s shares outstanding.

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:

1386798450530.png

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:

1386798478180.png

Google has a market cap of $362.37 billion. Its shares are currently trading at around $1084.66 with a P/E ratio of 28.90, a P/S ratio of 6.20 and a P/B ratio of 4.30. The company had an annual average earnings growth of 44.30% over the past 10 years.

GuruFocus rated Google the business predictability rank of 2.5-star.

Cisco Systems (CSCO)

Over the past quarter there were 45 gurus that held a stake in Cisco Systems. During the third quarter there were 16 gurus making buys and 29 gurus selling shares of their stake in Cisco. These gurus hold a combined weighting of 62.97%.

Top guru shareholders of Cisco:

1. Donald Yacktman: 50,273,165 shares, representing 0.94% of the company’s shares outstanding and 5.3% of his total portfolio.

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. Cisco is the current leader in the data networking industry.

Cisco Systems’ historical revenue and net income:

1386797475439.png

The analysis on Cisco reports that the company has shown predictable revenue and earnings growth, its dividend yield is nearing a 3-year high and the company has issued $939 million of debt over the past three years, but overall its debt level is acceptable.

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

1386797550173.png

Cisco has a market cap of $113.4 billion. Its shares are currently trading at around $21.21 with a P/E ratio of 11.50, a P/S ratio of 2.35 and a P/B ratio of 1.90. The dividend yield of Cisco Systems stocks is at 3.06%. The company had an annual average earnings growth of 8% over the past ten years.

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

Apple (AAPL)

The fourth top guru-held stock of the third quarter is in Apple. As of the close of the most recent quarter there were 43 gurus with a position in Apple. There were 23 gurus making buys of Apple stock and 19 gurus selling their stake in the company. These gurus hold a combined weighting of 82.63%.

The top guru shareholders of Apple:

1. Carl Icahn: 3,875,063 shares, representing 0.43% of the company’s shares outstanding.

2. David Einhorn: 2,397,706 shares, representing 0.26% of the company’s shares outstanding.

3. Ken Fisher: 1,540,133 shares, representing 0.17% of the company’s shares outstanding.

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.

Apple’s historical revenue and net income:

1386798561863.png

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

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

1386798590718.png

Apple has a market cap of $506.71 billion. Its shares are currently trading at around $563.17 with a P/E ratio of 14.20, a P/S ratio of 3.10 and a P/B ratio of 4.10. The company currently holds a dividend yield of 2.10% and has seen an annual average earnings growth of 60.10% over the past ten years.

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

Oracle Corporation (ORCL)

The fifth most guru-held tech stock of the third quarter is in Oracle Corporation. There are 37 guru shareholders of the company with 23 gurus making buys over the past quarter and 15 making sells. These gurus hold on to a cumulative portfolio weighting of 77.14%.

The top guru shareholders of Oracle:

1. Jeremy Grantham: 49,441,971 shares, representing 1.07% of the company’s shares outstanding.

2. Jean-Marie Eveillard: 27,367,792 shares, representing 0.59% of their shares outstanding.

3. Donald Yacktman: 24,416,925 shares, representing 0.53% of the company’s shares outstanding.

Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

1386798841289.png

The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high

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

1386798866726.png

Oracle Corporation has a market cap of $157.96 billion. Its shares are currently trading at around $34.77 with a P/E ratio of 14.80, a P/S ratio of 4.50 and a P/B ratio of 3.70. The company had an annual average earnings growth of 18.90% over the past ten years.

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

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

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Rating: 4.5/5 (4 votes)

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