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Ariel Capital Management and John Rogers' Top Five Stocks

May 14, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

John Rogers 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 first quarter Rogers purchased ten new stocks bringing his total holdings to 182 valued at $8.197 billion. The following five stocks are Rogers’ top holdings as of the close of the first quarter.

Lazard (LAZ)

Over the past quarter Rogers maintained his largest position in the company Lazard where he held on to 6,273,224 shares of the company’s stock. His holdings make up for 3.6% of his total portfolio as well as 5.14% of the company’s shares outstanding.

Over the past quarter Rogers made a decrease in his holdings by cutting -7.99%. He sold a total of 545,126 shares of the company’s stock. He sold these shares in the quarterly price range of $41.37 to $47.24 per share. The price per share is now trading up about 9.8% from the stock’s estimated average quarterly price of $45.01 per share.

Rogers’ holding history as of the first 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 $6.38 billion. Its shares are currently trading at around $49.42 with a P/E ratio of 41.10, a P/S ratio of 3.10 and a P/B ratio of 10.80. The company has a dividend yield of 2.20%.

First American Financial (FAF)

Rogers’ second largest holding was in First American Financial where he holds on to 9,603,028 shares of the company’s stock. This position makes up for 3.1% of his total portfolio and 8.98% of the company’s shares outstanding.

During the first quarter Rogers decreased his position -3.63% by selling 361,875 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $26.53 per share. Since then the price per share has increased approximately 3.7%.

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 overvalued:

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First American Financial has a market cap of $2.94 billion. Its shares are currently trading at around $27.51 with a P/E ratio of 17.50, a P/S ratio of 0.60 and a P/B ratio of 1.20. The dividend yield of FAF is currently at 1.70%. The company had an annual average earnings growth of 10.60% over the past five years.

Bristow Group (BRS)

The guru’s third largest holding is in Bristow where he maintains 3,217,959 shares of the company’s stock. This position makes up for 3% of his total holdings and 8.85% of the company’s shares outstanding.

Over the past quarter Rogers upped his holdings 43.33% by purchasing 972,811 shares. He bought those shares near the estimated average quarterly price of $74.13 per share. Since then the price per share has fallen approximately -0.1%.

Rogers’ historical holding history:

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Bristow Group is a provider of helicopter services to the offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry.

Bristow’s historical revenue and net income:

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The analysis on Bristow reports that the company’s dividend yield is near a 1-year high, its price is near a 10-year high, and over the past three years the company has issued $90.41 million of debt.

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

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Bristow Group has a market cap of $2.68 billion. Its shares are currently trading at around $73.76 with a P/E ratio of 13.80 and a P/S ratio of 1.70. The company had an annual average earnings growth of 3.40%.

Jones Lang LaSalle (JLL)

John Rogers’ fourth largest position is in Jones Lang LaSalle where he holds on to 2,080,710 shares of the company’s stock. This position makes up for 3% of Rogers’ total portfolio as well as 4.68% of the company’s shares outstanding.

During the first quarter Rogers decreased his holdings -17.93% by selling 454,429 shares of the company’s stock. He sold these shares in the price range of $101.95 to $123.92, with an estimated average quarterly price of $115.15 per share. Since then the price per share has jumped up approximately 3%.

John Rogers’ holding history as of the close of the first 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 $5.28 billion. Its shares are currently trading at around $118.52 with a P/E ratio of 20.00, a P/S ratio of 1.10 and a P/B ratio of 2.60. The company had an annual average earnings growth of 5.20% over the past ten years.

Interpublic Group of Companies (IPG)

Rogers’ fifth largest holding goes to Interpublic Group of Companies where he maintains 13,577,928 shares of the company’s stock. This position makes up for 2.8% of the guru’s total holdings as well as for 3.22% of the company’s shares outstanding.

Over the past quarter Rogers cut his holdings -1.73% by selling 238,945 shares. He sold these shares near the estimated average quarterly price of $17.10 per share. Since then the price per share has increased approximately 4.3%.

Rogers’ historical holding history:

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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:

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Interpublic Group of Companies has a market cap of $7.52 billion. Its shares are currently trading at around $17.74 with a P/E ratio of 30.40, a P/S ratio of 1.10 and a P/B ratio of 3.30. The company had an annual average earnings growth of 17% over the past ten years.

Check out John Rogers’ complete first quarter holdings here.

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