First Eagle Invests in Stake in Texas Instruments

Brewery, railroad, energy company also among new buys for guru

Nov 12, 2015

Jean-Marie Eveillard’s value-oriented investing principles are embraced by First Eagle Investment (Trades, Portfolio), which posted returns just under 3% in 2014. Its returns the year before were nearly five times that.

First Eagle makes hundreds of transactions every quarter. Perhaps one or more of its buys or adds in the third quarter will define the kind of year 2015 is for First Eagle.

First Eagle’s most significant purchase in the third quarter was its acquisition of a 3,513,241-share stake in Texas Instruments Inc. (TXN, Financial), a Dallas-based semiconductor company, for an average price of $48.81 per share. The deal had a 0.45% impact on First Eagle’s portfolio.

Texas Instruments has a market cap of $57.96 billion and an enterprise value of $59.04 billion. It has a P/E of 20.5, a forward P/E of 18.8, a P/B of 5.9 and a P/S of 4.6. GuruFocus has given Texas Instruments a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Texas Instruments sold for $56.87 per share Thursday afternoon.

First Eagle acquired a 1,883,519-share stake in Molson Coors Brewing Co. (TAP, Financial), a brewing company with offices in Denver and Montreal, for an average price of $72.39 per share. That transaction had a 0.4% impact on First Eagle’s portfolio.

Molson Coors Brewing has a market cap of $17.07 billion and an enterprise value of $19.84 billion. It has a P/E of 41.1, a forward P/E of 23.2, a P/B of 2.4 and a P/S of 4.7. GuruFocus has given Molson Coors Brewing a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.

Thursday afternoon Molson Coors Brewing sold for $92.72 per share.

First Eagle bought a 1,525,604-share stake in Union Pacific Corp. (UNP, Financial), an Omaha, Neb.-based freight railroad, for an average price of $91.26 per share. The acquisition had a 0.35% impact on First Eagle’s portfolio.

Union Pacific has a market cap of $71.95 billion and an enterprise value of $84.2 billion. It has a P/E of 14.5, a forward P/E of 14.0, a P/B of 3.5 and a P/S of 3.3. GuruFocus has given Union Pacific a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

Union Pacific sold for $83.99 per share Thursday afternoon.

First Eagle bought a 3,374,827-share stake in UGI Corp. (UGI, Financial), a King of Prussia, Pa.-based energy company, for an average price of $34.93 per share. The transaction had a 0.3% impact on First Eagle’s portfolio.

UGI has a market cap of $5.88 billion and an enterprise value of $10.26 billion. It has a P/E of 22.3, a P/B of 2.1 and a P/S of 0.9. GuruFocus has given UGI a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

First Eagle Investment (Trades, Portfolio) is UGI’s leading shareholder among the gurus. Jim Simons (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Keeley (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of UGI in their portfolios.

Thursday afternoon UGI sold for $34.1 per share.

First Eagle increased its stake in FMC Technologies Inc. (FTI, Financial), a Houston-based provider of equipment and services for the energy industry, by more than 180%. First Eagle purchased 8,999,749 shares for an average price of $33.81 per share. The transaction had a 0.71% impact on First Eagle’s portfolio.

FMC Technologies has a market cap of $7.55 billion and an enterprise value of $8.15 billion. It has a P/E of 15.3, a forward P/E of 21.9, a P/B of 3.0 and a P/S of 1.1. GuruFocus has given FMC Technologies a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Frank Sands (Trades, Portfolio), Meridian Funds (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Michael Price (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of FMC Technologies in their portfolios.

FMC sold for $32.76 per share Thursday afternoon.

First Eagle raised its stake in Franco-Nevada Corp. (FNV, Financial), a Toronto-based mining and oil and gas company, by more than 320% with its purchase of 5,461,902 shares for an average price of $43.06 per share. The deal had a 0.62% impact on First Eagle’s portfolio.

Franco-Nevada has a market cap of $7.96 billion and an enterprise value of $6.93 billion. It has a P/E of 107.8, a forward P/E of 72.5, a P/B of 2.6 and a P/S of 16.4. GuruFocus has given Franco-Nevada a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

First Eagle is Franco-Nevada’s leading shareholder among the gurus. Chuck Royce (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and RS Investment Management (Trades, Portfolio) also have shares of Franco-Nevada in their portfolios.

Thursday afternoon Franco-Nevada sold for $47.02 per share.

First Eagle added 3,916,141 shares to its stake in Flowserve Corp. (FLS, Financial), an Irving, Texas-based industrial machinery company, for an average price of $45.86 per share. The purchase had a 0.41% impact on First Eagle’s portfolio.

Flowserve has a market cap of $5.97 billion and an enterprise value of $7.43 billion. It has a P/E of 17.4, a forward P/E of 14.5, a P/B of 3.5 and a P/S of 1.3. GuruFocus has given Flowserve a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

First Eagle is Flowserve’s leading shareholder among the gurus. Manning & Napier Advisors Inc., Mario Gabelli (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Jim Simons (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Ron Baron (Trades, Portfolio) and David Dreman (Trades, Portfolio) also have shares of Flowserve in their portfolios.

Flowserve sold for $45.32 per share Thursday afternoon.

First Eagle raised its stake in National Oilwell Varco Inc. (NOV, Financial), a Houston-based provider of oilfield services and equipment, by 4,187,378 shares. First Eagle paid an average price of $40.9 per share. The transaction had a 0.4% impact on First Eagle’s portfolio.

National Oilwell Varco has a market cap of $14.1 billion and an enterprise value of $15.47 billion. It has a P/E of 11.4, a forward P/E of 21.5, a P/B of 0.8 and a P/S of 0.8. GuruFocus has given National Oilwell Varco a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Thursday afternoon National Oilwell Varco sold for $37.6 per share.

To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us ETF Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.