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Texas-Based Yacktman's Top First Quarter Holdings

May 08, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Over the duration of the first quarter Donald Yacktman of Yacktman Asset Management added no new stocks to his holdings and sold out of four, bringing his total portfolio holdings to 47 stocks. As of the close of the quarter his portfolio was valued at over $24 billion.

The following five companies represent the Texas-guru’s top five portfolio holdings as of the close of the first quarter.

PepsiCo (PEP)

Yacktman’s largest position is in PepsiCo where he holds on to 33,019,680 shares of the company’s stock. His position in Pepsi represents 11.5% of his fund’s total portfolio and 2.14% of Pepsi’s shares outstanding.

During the first quarter, the Donald Yacktman upped his stake 3.51% by purchasing a total of 1,120,461 shares. The guru purchased these shares in the fourth quarter price range of $77.10 to $83.50, with an estimated average quarterly price of $81.20 per share. The price per share has since then increased about 5.1%.

Donald Yacktman’s historical holding history:

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PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages and other products.

PepsiCo’s historical revenue and net income:

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The analysis on Pepsi reports that the company’s revenue has slowed over the past year, the dividend yield is nearing a five-year low, its P/E ratio is at a one-year low and the company has issued $5.2 billion of debt over the past three years.

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

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PepsiCo has a market cap of $131.35 billion. Its shares are currently trading at around $86.64 with a P/E ratio of 19.60, a P/S ratio of 2.00 and a P/B ratio of 4.40. The company had an annual average earnings growth of 7.7% over the past 10 years.

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

Procter & Gamble (PG)

Yacktman’s second largest position is in Procter & Gamble where he holds on to 26,514,685 shares of the company’s stock. His position in the company represents 8.9% of his total portfolio and 0.97% of the company’s shares outstanding.

Over the past quarter Yacktman upped his holdings in Procter & Gamble 2.73% by purchasing a total of 705,732 shares of the company’s stock. He bought these shares in the first quarter price range of $75.70 to $81.42, with an estimated average quarterly price of $81.47. Since his buy the price per share has increased approximately 4.1%.

Donald Yacktman’s holding history as of the close of the first quarter:

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Procter & Gamble provides branded consumer packaged goods. The company's business units are aggregated into five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care and Baby Care and Family Care.

Procter & Gamble’s historical revenue and net income:

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The analysis on Procter & Gamble reports that the company’s revenue has slowed over the past year, its price is close to a 10-year high and they have issued $1.5 billion of debt over the past three years.

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

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Procter & Gamble has a market cap of $221.97 billion. Its shares are currently trading at around $82.03 with a P/E ratio of 21.70, a P/S ratio of 2.80 and a P/B ratio of 3.20. The dividend yield of Procter & Gamble stocks is currently at 3.00%. The company had an annual average earnings growth of 4.20% over the past ten years.

Twenty-First Century Fox (FOXA)

Donald Yacktman’s third largest position is actually in a newer company that he purchased back over the duration of the third quarter of 2013. Yacktman cut his holdings -6% over the quarter by selling 3,742,853 shares in the first quarter price range of $30.37 to $35.63, with an estimated average quarterly price of $32.68 per share. Since then the price per share has dropped approximately -1.7%.

Yacktman now holds on to 58,629,098 shares of FOXA, making up for 7.8% of his total holdings and 2.54% of the company’s shares outstanding.

Donald Yacktman’s historical holding history:

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Twenty-First Century Fox is a diversified media and entertainment company. Its segments include Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television.

Twenty-First Century Fox’s historical revenue and net income:

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The analysis on Twenty-First Century Fox reports that the company’s dividend yield is near a 5-year low, the company’s revenue has been in decline over the past five years and its price is sitting near its 10-year high.

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

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Twenty-First Century Fox has a market cap of $72.49 billion. Its shares are currently trading at around $32.12 with a P/E ratio of 15.20, a P/S ratio of 2.50 and a P/B ratio of 4.10.

Coca-Cola (KO)

Yacktman’s fourth largest position is in the guru-favorite Coca-Cola. Donald Yacktman holds on to 44,453,471 shares of Coke, representing 7.2% of his total portfolio and 1% of the company’s shares outstanding.

During the first quarter Don Yacktman made a increase to his stake, increasing it by 2.8%. The guru purchased a total of 1,210,100 shares near the estimated average quarterly price of $38.65 per share. Since his increase the price per share has increased approximately 5.7%.

Yacktman’s historical holding history:

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Coca-Cola is a beverage company. It owns or license and market more than 500 nonalcoholic beverage brands, mainly sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Coca-Cola’s historical revenue and net income:

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The analysis on Coca-Cola reports that the revenue has slowed over the past year, they have issued $14.4 billion of debt over the past three years and its P/S, P/B and P/E ratios are all trading at historical lows.

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

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Coca-Cola has a market cap of $179.81 billion. Its shares are currently trading at around $40.91 with a P/E ratio of 21.90, a P/S ratio of 3.90and a P/B ratio of 5.50. The company had an annual average earnings growth of 10% over the past ten years.

GuruFocus rated Coca-cola Co the business predictability rank of 5-star.

Cisco Systems (CSCO)

Donald Yacktman’s fifth largest holding is in Cisco Systems where the guru currently holds on to 62,292,307shares of the company’s stock. His position in Cisco represents 5.8% of his total portfolio and 1.17% of the company’s shares outstanding.

During the first quarter Yacktman reduced his holdings -0.26% by selling 163,013 shares of the company’s stock. He sold these shares in the quarterly price range of $21.35 to $23.10, with an estimated average quarterly price of $22.1. Since his sell the price per share is trading up about 2.4%.

Donald Yacktman’s holding history as of the first quarter:

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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:

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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:

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Cisco Systems has a market cap of $117.81 billion. Its shares are currently trading at around $22.87 with a P/E ratio of 15.30 and a P/S ratio of 2.60. The company had an annual average earnings growth of 9.30% over the past ten years.

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

Check out Donald Yacktman’s fourth quarter portfolio along with the portfolios of the Yacktman Focused Fund and the Yacktman Fund.

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