At the end of the first quarter, Mason Hawkins (Trades, Portfolio)’ stake in Royal Philips NV (PHG, Financial) was the seventh-largest stake in his portfolio at nearly 17 million shares.
But, as the second quarter was coming to an end – and because there was a significant gap between the seventh spot and the fourth spot in his portfolio – Hawkins, chairman and CEO of Memphis, Tennessee-based Southeastern Asset Management, nearly tripled his stake in the Dutch technology company, buying 27,069,910 shares for an average price of $25.46 per share, and Royal Phillips became Hawkins’ fourth-largest holding.
Royal Phillips jumped past California Resources Corp (CRC, Financial), Loews Corp (L, Financial) and CNH Industrial NV (CNHI, Financial) into the fourth position in Hawkins’ portfolio. Had Hawkins purchased an additional 1 million shares, his stake in Royal Phillips would be his third largest.
Royal Phillips has a market cap of $23.91 billion and an enterprise value of $28.41 billion. It has a P/E of 57.7, a Price/Book of 1.9 and a Price/Sales of 1.0. Dodge & Cox, Meridian Funds (Trades, Portfolio) and NWQ Managers (Trades, Portfolio) have shares of Royal Phillips in their portfolios.
June was a big month for Royal Phillips. In mid-June, New York’s Westchester Medical Center announced a 15-year, $500 million agreement with Royal Phillips to provide the hospital system with advanced medical technologies for imaging systems, patient monitoring, telehealth and clinical informatics as well as clinical and business consulting services.
Then, about a week later, it was revealed that, later this year, the world’s first app-based ultrasound device, open to startup innovation, will be commercially available through Royal Phillips. Engineers at Royal Philips have been working for five years to develop new ultrasound technology.
Finally, as June was drawing to a close, it was reported that Philips' Hue, an LED lamp, will be integrated with ABB's i-Jia, a smart home control system, to give Chinese consumers a connected lighting experience and further the adoption of smart homes in China.
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