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Ariel Capital and John Rogers' Top Five Fourth Quarter Positions

February 19, 2014 | About:
Monica Wolfe

Monica Wolfe

123 followers
John Rogers (Trades, Portfolio) is the founder of Ariel Capital Management which he began in 1983. According to his Investing Philosophy the guru concentrates his investments on small- to medium-sized companies whose prospects include high barriers to entry, sustainable competitive advantages and predictable fundamentals that allow for extensive cash earnings growth.

Over the fourth quarter Rogers purchased twelve new stocks bringing his total holdings to 179 valued at $8.14 billion. The following five stocks are Rogers’ top holdings as of the close of the fourth quarter.

Lazard (LAZ)

Over the past quarter Rogers maintained his largest position in the company Lazard where he held on to 6,818,350 shares of the company’s stock. His holdings make up for 3.8% of his total portfolio as well as 5.59% of the company’s shares outstanding.

Over the past quarter Rogers made a slight increase in his holdings by adding 0.83%. He purchased a total of 55,849 shares of the company’s stock. He bought these shares in the quarterly price range of $35.48 to $45.32 per share. The price per share is now trading up about 10.3% from the stock’s estimated average quarterly price of $40.50 per share.

Rogers’ holding history as of the fourth quarter:

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Lazard is a preeminent international financial advisory and asset management firm that has long specialized in crafting solutions to the complex financial and strategic challenges of its clients.

Lazard’s historical revenue and earnings growth:

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The analysis on Lazard reports that the company’s revenue has been in decline over the past five years, its price is nearing a 5-year high and the company’s dividend yield is at a 1-year high.

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

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Lazard has a market cap of $5.44 billion. Its shares are currently trading at around $44.67 with a P/E ratio of 58.50, a P/S ratio of 2.90 and a P/B ratio of 9.40. The company has a dividend yield of 2.40%.

First American Financial Corp (FAF)

Rogers’ second largest holding was in First American Financial where he holds on to 9,964,903 shares of the company’s stock. This position makes up for 3.5% of his total portfolio and 9.32% of the company’s shares outstanding.

During the fourth quarter Rogers increased his position 1.27% by purchasing 125,278 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $25.95 per share. Since then the price per share has increased approximately 3.3%.

Rogers’ historical holding history:

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First American Financial is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment. The company is a holding company for The First American Corporation’s financial services business.

First American Financial’s historical revenue and net income:

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The analysis on First American Financial reports that the company’s price is near a 5-year high, the company holds enough cash to cover its debt and the company’s P/S ratio is also near a 5-year high.

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

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First American Financial has a market cap of $2.84 billion. Its shares are currently trading at around $26.92 with a P/E ratio of 12.90, a P/S ratio of 0.60 and a P/B ratio of 1.20. The dividend yield of FAF is currently at 1.80%.

Jones Lang LaSalle (JLL)

John Rogers (Trades, Portfolio)’ third largest position is in Jones Lang LaSalle where he holds on to 2,535,139 shares of the company’s stock. This position makes up for 3.2% of Rogers’ total portfolio as well as 5.71% of the company’s shares outstanding.

During the fourth quarter Rogers increased his holdings 5.12% by purchasing 123,551 shares of the company’s stock. He purchased these shares in the price range of $82.68 to $102.80, with an estimated average quarterly price of $93.87 per share. Since then the price per share has jumped up approximately 30.5%.

John Rogers (Trades, Portfolio)’ holding history as of the close of the fourth quarter:

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Jones Lang LaSalle is a financial and professional services firm specializing in real estate. It offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate.

Jones Lang LaSalle’s historical revenue and earnings growth:

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The analysis on Jones Lang LaSalle reports that the company’s dividend yield is near a 2-year low, its price is near a 10-year high and over the past three years the company has issued $478.911 million of debt.

As of the most recent data, there were 12 gurus with a position in Jones Lang LaSalle. Check out their holdings here.

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

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Jones Lang LaSalle has a market cap of $5.44 billion. Its shares are currently trading at around $122.12 with a P/E ratio of 23.50, a P/S ratio of 1.30 and a P/B ratio of 2.60. The company had an annual average earnings growth of 9% over the past ten years.

Interpublic Group of Companies (IPG)

Rogers’ fourth largest holding goes to Interpublic Group of Companies where he maintains 13,816,873 shares of the company’s stock. This position makes up for 3% of the guru’s total holdings as well as for 3.27% of the company’s shares outstanding.

Over the past quarter Rogers cut his holdings -4.57% by selling 662,246 shares. He sold these shares near the estimated average quarterly price of $16.84 per share. Since then the price per share has increased a minor 0.1%.

Rogers’ historical holding history:

1392836584608.png

Interpublic Group of Companies is a global advertising and marketing services. The company has two reportable segments: Integrated Agency Network, which is comprised of McCann, Draftfcb, Lowe, Mediabrands and its domestic integrated agencies; and Constituency Management Group which is comprised of the bulk of its specialist marketing service offerings.

Interpublic Group of Companies’ historical revenue and net income:

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The analysis on Interpublic Group of Companies reports that the company’s operating margin is expanding, its price is near a 10-year high and its P/E and P/S ratios are also trading at historical highs.

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

1392847370873.png

Interpublic Group of Companies has a market cap of $6.96 billion. Its shares are currently trading at around $16.71 with a P/E ratio of 22.20, a P/S ratio of 1.10 and a P/B ratio of 3.40. The company had an annual average earnings growth of 18.00% over the past ten years.

Janus Capital Group (JNS)

The guru’s fifth largest holding is in Janus Capital Group. Rogers holds on to 18,599,073 shares of the company’s stock, representing 2.8% of Rogers’ total portfolio as well as 9.82% of the company’s shares outstanding.

During the fourth quarter Rogers reduced his position -4.43% by selling 861,569 shares of Janus Capital. He sold these share near the estimated average quarterly price of $10.30 per share. Since then the price per share is up approximately 5.5%.

Rogers’ historical holding history as of the fourth quarter:

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Janus Capital Group and its subsidiaries provide investment management, administration, distribution and related services to individual and institutional investors through mutual funds, separate accounts and sub-advised relationships in both domestic and international markets.

Janus Capital Group’s historical revenue and net income:

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The analysis on Janus reports that the company’s revenue has been in decline over the past five years and that its Altman Z-Score is grey, implying some sort of financial stress.

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

1392848341375.png

Janus Capital has a market cap of $2.02 billion. Its shares are currently trading at around $10.67 with a P/E ratio of 18.70, a P/S ratio of 2.30 and a P/B ratio of 1.40.

Check out John Rogers’ complete list of fourth quarter positions here.

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