Robert L. Rodriguez is the CEO of First Pacific Advisors, a Los Angeles-based money management firm practicing a disciplined approach to value investing, prudently seeking superior long-term returns, while maintaining a focus on capital preservation.
The firm manages a portfolio composed of 121 stocks with a total value of $12,249 million. The following are the largest trades during the second quarter.
It increased the stake in Alcoa Inc. (AA) by 57.56% with an impact of 1.16% on the portfolio.
The company manufactures and engineers lightweight metals. Its products include aluminum, titanium, and nickel, which are used in aircraft, automobiles, commercial transportation, packaging, oil and gas, defense and industrial applications. It operates in 31 countries.
Alcoa reported solid second quarter 2015 results as the company’s transformation showed strong progress. Global Rolled Products were up by 9%, and adjusted EBITDA per metric ton was up by 18%. It even reported an increase of 16% year-over-year for net income.
The stock is trading with a P/E ratio of 20.24 and has been as high as $17.75 and as low as $7.97 in the past year. It is currently 44.17% below its 52-week high and 24.34% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 32%.
Steven Romick (Trades, Portfolio) is the main guru shareholder with 3.39% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 2.85% and Manning & Napier Advisors with 2.51%.
The firm bought 2,666,000 shares of LPL Financial Holdings Inc. (LPLA) with an impact of 1.01% on the portfolio.
The company's focus is to provide advisors with the front, middle and back-office support to serve the markets for independent investment advice.
During the last quarter, LPL had a strong net new advisory asset flows driven by solid recruiting and advisor productivity. The company posted an increase of 23.8% in EPS and 16.6% increase for net income year over year.
The stock is trading with a P/E ratio of 20.23 and has been as high as $48.18 and as low as $36.41 in the past year. It is currently 21.96% below its 52-week high and 3.27% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 37%.
First Pacific Advisors (Trades, Portfolio) is the main guru shareholder with 2.80% of outstanding shares, followed by the investor Chuck Akre (Trades, Portfolio) with 1.38% and Merdian Funds with 1.1%.
The firm increased its stake in Bank of America Corporation (BAC) by 31.24% with an impact of 0.56% on the portfolio.
Bank of America provides a diversified range of banking and non-banking financial services and products through five business segments: Consumer and Business Banking, Consumer Real Estate Services, Global Wealth and Investment Management, Global Banking and Global Markets.
For the third quarter, BAC posted an increase of 4% for Total Deposits (EOP) and New Credit Cards Issued was up by 5%. The company built capital and liquidity to record levels and grew total loans for the second consecutive quarter.
The stock is trading with a P/E ratio of 16.68 and has been as high as $18.48 and as low as $14.60 in the past year. It is currently 14.72% below its 52-week high and 7.95% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 16%.
Dodge & Cox is the main guru shareholder with 1.69% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.83% and Bruce Berkowitz (Trades, Portfolio) with 0.52% of outstanding shares.
The firm sold out shares of Intel Corp. (INTC) with an impact of 0.50% on the portfolio.
The company designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset, and may be enhanced by additional hardware, software, and services. Its platforms are used in computing applications, such as notebooks, desktops, servers, tablets, smartphones, automobile infotainment systems, automated factory systems and medical devices.
For the third quarter the company delivered solid results in a challenging economic environment. Revenue was approximately flat year-over-year, with growth in the data center, Internet of Things and non-volatile memory businesses, offsetting lower client revenue. Gross margin of 63% was consistent with outlook.
The stock is trading with a P/E ratio of 19.34 and has been as high as $37.90 and as low as $24.87 in the past year. It is currently 13.01% below its 52-week high and 32.57% above its 52-week low.
PRIMECAP Management (Trades, Portfolio) is the main guru shareholder with 0.68% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.6%, James Barrow (Trades, Portfolio) with 0.54% and Ken Fisher (Trades, Portfolio) with 0.41% of outstanding shares.
First Pacific increased its stake in Oracle Corporation (ORCL) by 6.20% with an impact of 0.39% on the portfolio.
The company develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products and related services that are engineered to work together in cloud-based and on-premise information technology (IT) environments.
Driven by new SaaS and PaaS annual recurring cloud subscription contracts, which almost tripled during the quarter, traditional on-premise software business plus new cloud business grew at a combined rate of 6% in constant currency
The stock is trading with a P/E ratio of 17.52 and has been as high as $46.71 and as low as $35.14 in the past year. It is currently 19.59% below its 52-week high and 6.89% above its 52-week low. According to the DCF calculator, the company currently looks undervalued by 23%.
First Eagle Investment (Trades, Portfolio) is the main guru shareholder with 0.89% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.89% and Donald Yacktman (Trades, Portfolio) with 0.7% of outstanding shares.
It increased its stake in Apollo Education Group Inc. (APOL) by 86.85% with an impact of 0.32% on the portfolio.
Apollo offers educational programs and services, online and on-campus, at the undergraduate, master's and doctoral levels.Â
The stock is trading with a P/E ratio of 14.47 and has been as high as $34.55 and as low as $10.12 in the past year. It is currently 70.42% below its 52-week high and 0.99% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 21%.
Larry Robbins (Trades, Portfolio) is the main guru shareholder with 7.04% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 6.04% and FPA Capital Fund (Trades, Portfolio) with 3.04%.
