Michael Price (Trades, Portfolio) is known to prefer out-of-favor small cap companies that offer good value when he makes his investment decisions, and many of his third-quarter transactions fit that description, but some of his largest transactions involved companies with caps that exceeded several billion dollars.
A good example is Price’s most significant third-quarter transaction – the sale of his 400,000-share stake in Hospira Inc. (HSP, Financial), a Lake Forest, Illinois-based pharmaceutical and medical device company, for an average price of $89.48 per share. The divestiture had a -4.67% impact on Price’s portfolio.
Hospira has a market cap of $15.56 billion and an enterprise value of $16.49 billion. It has a P/E of 37.8, a forward P/E of 27.9, a P/B of 4.3 and a P/S of 3.4. GuruFocus has given Hospira a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
Meridian Funds (Trades, Portfolio) has shares of Hospira in its portfolio.
Hospira sold for $89.95 per share Friday afternoon.
Price also sold his stake in GulfMark Offshore Inc. (GLF, Financial), a Houston-based services provider to the offshore oil and gas industry. Price sold his 550,000-share stake for an average price of $8.52 per share in a deal that had a -0.84% impact on Price’s portfolio.
GulfMark Offshore has a market cap of $131.23 million and an enterprise value of $623.71 million. It has a forward P/E of 17.8, a P/B of 0.2 and a P/S of 0.4. GuruFocus has given GulfMark Offshore a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10.
Jim Simons (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of GulfMark Offshore in their portfolios.
Friday afternoon GulfMark Offshore sold for $5.14 per share.
Price increased his stake in Dolby Laboratories Inc. (DLB, Financial), a San Francisco-based audio noise reduction and encoding/compression company, by nearly 46%. Price purchased 321,920 shares for an average price of $34.12 per share. The transaction had a 1.57% impact on Price’s portfolio.
Dolby Laboratories has a market cap of $3.49 billion and an enterprise value of $2.83 billion. It has a P/E of 19.9, a forward P/E of 15.9, a P/B of 1.9 and a P/S of 3.7. GuruFocus has given Dolby Laboratories a Financial Strength rating of 9/10 and a Profitability and Growth rating of 6/10.
Price is Dolby Laboratories’ leading shareholder among the gurus with 1,024,420 shares in his portfolio. Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) have shares of Dolby Laboratories in their portfolios.
Dolby Laboratories sold for $34.7 Friday afternoon.
Price raised his stake in FMC Technologies Inc. (FTI, Financial), a Houston-based provider of equipment and services for the energy industry, by nearly 485%. Price acquired 157,500 shares for an average price of $33.81 per share. The deal had a 0.73% impact on Price’s portfolio.
FMC Technologies has a market cap of $7.39 billion and an enterprise value of $8 billion. It has a P/E of 15.1, a forward P/E of 21.7, a P/B of 2.9 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), First Eagle Investment (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Steven Cohen (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of FMC Technologies in their portfolios.
Friday afternoon FMC Technologies sold for $32.5 per share.
Price increased his stake in United States Steel Corp. (X, Financial), a Pittsburgh-based steel producer, by 78% with the purchase of 372,500 shares for an average price of $16.72 per share. The transaction had a 0.58% impact on Price’s portfolio.
United States Steel has a market cap of $1.14 billion and an enterprise value of $3.46 billion. It has a forward P/E of 500, a P/B of 0.4 and a P/S of 0.1. GuruFocus has given United States Steel a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of United States Steel in their portfolios.
United States Steel sold for $7.78 per share Friday afternoon.
Price made 12 new buys in the third quarter. The most significant was his investment in a 56,000-share stake in Chubb Corp. (CB, Financial), a Warren, New Jersey-based property and casualty insurer, for an average price of $122.34 per share. The acquisition had a 1.03% impact on Price’s portfolio.
Chubb has a market cap of $30.04 billion and an enterprise value of $30.23 billion. It has a P/E of 15.3, a forward P/E of 16.9, a P/B of 1.8 and a P/S of 2.2. GuruFocus has given Chubb a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10.
HOTCHKIS & WILEY, PRIMECAP Management (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), T Rowe Price Equity Income Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio), Chris Davis (Trades, Portfolio), Dodge & Cox, Paul Tudor Jones (Trades, Portfolio), Bernard Horn (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Chubb in their portfolios.
Friday afternoon Chubb sold for $132.36 per share.
Price purchased a 38,100-share stake in Macerich Co. (MAC, Financial), a Santa Monica, California-based real estate investment trust, for an average price of $77.41 per share. The transaction had a 0.44% impact on Price’s portfolio.
Macerich has a market cap of $12.43 billion and an enterprise value of $19.55 billion. It has a P/E of 8.0, a forward P/E of 71.9, a P/B of 2.3 and a P/S of 9.5. GuruFocus has given Macerich a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
Third Avenue Management (Trades, Portfolio), Jim Simons (Trades, Portfolio), Chris Davis (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Macerich in their portfolios.
Macerich sold for $132.36 per share Friday afternoon.
Price reduced his stake in E. I. du Pont de Nemours & Co. (DD, Financial), a Wilmington, Delaware-based chemical company, by nearly 36%. Price sold 100,397 shares for an average price of $53.37 per share. The deal had a -0.76% impact on Price’s portfolio.
E. I. du Pont de Nemours has a market cap of $59.34 billion and an enterprise value of $64.22 billion. It has a P/E of 21.5, a forward P/E of 20.0, a P/B of 5.4 and a P/S of 1.8. GuruFocus has given E. I. du Pont de Nemours a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Mason Hawkins (Trades, Portfolio), T Rowe Price Equity Income Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Manning & Napier Advisors Inc., Robert Olstein (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Ruane Cunniff, Tom Russo (Trades, Portfolio), Mark Hillman (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Dodge & Cox, David Dreman (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Mairs and Power (Trades, Portfolio), Richard Snow (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) have shares of E. I. du Pont de Nemours in their portfolios.
Friday afternoon E. I. du Pont de Nemours sold for $67.71 per share.
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