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Oakmark’s Bill Nygren's Top Holdings Led by Bank of America and Oracle

May 29, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Also reported today, Oakmark’s Bill Nygren shared his first quarter portfolio which highlighted a rather eventful quarter for the guru. Nygren purchased five new stocks over the past quarter bringing his total number of stocks to 59. Nygren’s Oakmark Fund portfolio is currently valued at over $12.5 billion.

The following five companies are Nygren’s five largest holdings.

Bank of America (BAC)

The guru’s largest position continues to be in Bank of America where he holds on to 23,950,000 shares of the company’s stock. His position in Bank of America makes up of 3.3% of his total portfolio and 0.21% of the company’s shares outstanding.

Nygren did not alter his position over the past quarter. Since his last buy in the fourth quarter, the price per share has gone up approximately 2.2%.

Nygren’s historical holding history:

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Bank of America, through its subsidiaries, provides a diversified range of banking and non-banking financial services and products through five business segments: Deposits, Card Services, Consumer Real Estate Services, Global Commercial Banking, Global Banking & Markets and Investment Management.

Bank of America’s historical revenue and net income:

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The analysis on Bank of America reports that the company’s revenue per share has been in decline over the past five years and that its Piotroski F-Score is high.

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

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Bank of America has a market cap of $159.42 billion. Its shares are currently trading at around $15.16 with a P/E ratio of 20.30, a P/S ratio of 1.90 and a P/B ratio of 0.70. The company had an annual average earnings growth of 16.50% over the past five years.

Oracle (ORCL)

Nygren’s second largest holding is in Oracle where he holds on to 7,330,000 shares of the company’s stock. His position in ORCL represents 2.4% of his total portfolio.

Over the past quarter Nygren upped his holdings 3.53% by purchasing 250,000 shares of the company’s stock. The guru bought these shares in the first quarter price range of $35.84 to $40.91, with an estimated average quarterly price of $38.06. Since then the price per share has increased approximately 10.1%.

Nygren’s historical holding history:

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Oracle is a provider of enterprise software and a provider of computer hardware products and services. The company provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management.

Oracle’s historical revenue and earnings growth:

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The analysis on Oracle reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its dividend yield is near a 10-year high. The analysis also notes that the company’s price is near a 10-year high.

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

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Oracle has a market cap of $186.78 billion. Its shares are currently trading at around $41.89 with a P/E ratio of 17.40, a P/S ratio of 5.10 and a P/B ratio of 4.20. The dividend yield of Oracle stocks is 1.10%, and the company has seen an annual average earnings growth of 19.40% over the past ten years.

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

TE Connectivity (TEL)

Bill Nygren’s third largest position is in TE Connectivity where he maintains 4,686,000 shares of the company’s stock. His holdings in TE Connectivity make up for 2.3% of his total assets managed and 1.13% of the company’s shares outstanding.

The guru did not change his position in his holdings over the duration of the third quarter. His last move in TEL was in the first quarter of 2013 when he added 200,000 shares to his holdings. Since this buy the price per share has increased about 47.3%.

Nygren’s historical holding history:

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TE Connectivity designs and manufactures products involved in electronic connections for industries including automotive, energy and industrial, broadband communications, consumer devices, health care and aerospace and defense.

TE Connectivity’s historical revenue and net income:

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The analysis on TE Connectivity reports that the company’s dividend yield is near a 5-year low, its price is near a 10-year high and its revenue has been in decline over the past three years.

The Peter Lynch chart shows that TE currently appears to be overvalued:

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TE Connectivity has a market cap of $24.11 billion. Its shares are currently trading at around $58.99 with a P/E ratio of 17.30, a P/S ratio of 1.80 and a P/B ratio of 2.80.

Medtronic (MDT)

The guru’s fourth largest holding is in Medtronic where he holds on to 4,585,000 shares of the company’s stock. This position makes up for 2.3% of his holdings as well as 0.46% of the company’s shares outstanding.

Over the past quarter Nygren increased his holdings 4.56% by purchasing 200,000 shares of the company’s stock. He bought these shares in the quarterly price range of $53.60 to $61.54, with an estimated average quarterly price of $58.25 per share. Since then the price per share has increased approximately 3.3%.

Nygren’s historical holding history:

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Medtronic is engaged in providing medical technology- alleviating pain, restoring health, and extending life for people. Its products include those for cardiac rhythm disorders, cardiovascular disease, neurological disorders, spinal conditions and musculoskeletal trauma, urological and digestive disorders, diabetes, and ear, nose, and throat conditions.

Medtronic’s historical revenue and net income:

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The analysis on Medtronic reports that the company’s shown predictable revenue and earnings growth, its operating margin is expanding and its price is near a 10-year high. It also notes that the company’s dividend yield is near a 5-year low and that over the past three years the company has issued $1.3 billion of debt.

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

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Medtronic has a market cap of $60.5 billion. Its shares are currently trading at around $60.45 with a P/E ratio of 17.00, a P/S ratio of 3.60 and a P/B ratio of 3.10. The company had an annual average earnings growth of 7.50% over the past ten years.

GuruFocus rated Medtronic the business predictability rank of 4-star.

UnitedHealth Group (UNH)

The guru’s fifth largest holding goes to UnitedHealth where he maintains 3,460,000 shares of the company’s stock. His holdings represent 2.3% of his total portfolio and 0.34% of the company’s shares outstanding.

The guru did not alter his position in UnitedHealth Group over the past quarter. The price per share has increased approximately 26.3% since his last buy in the second quarter of 2013.

Nygren’s historical holding history:

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UnitedHealth is a health and wellness company that helps people live healthier lives and help make health care work better. The company is helping individual's access quality care at an affordable cost; simplifying health care administration and delivery; strengthening the physician/patient relationship; and empowering physicians, health care professionals, consumers, and employers in the health system with actionable data to make better, more informed decisions.

UnitedHealth’s historical revenue and net income:

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The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its dividend yield is at a 10-year high and it has shown predictable revenue and earnings growth.

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

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UnitedHealth has a market cap of $76.98 billion. Its shares are currently trading at around $78.56 with a P/E ratio of 14.60, a P/S ratio of 0.60 and a P/B ratio of 2.30. The company had an annual average earnings growth of 12.50% over the past five years.

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

Check out Bill Nygren’s complete first quarter portfolio here.

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