Brian Rogers recently stepped down from managing the T. Rowe Price Equity Income Fund (PRFDX), which he had managed since its inception in 1985. John Linehan now oversees the fund as of the fourth quarter of 2015. The portfolio is composed of 113 stocks with total value of $22.2 billion. The following are the stakes the fund reduced during the fourth quarter.
The fund reduced its stake in U.S. Bancorp (USB) by 73.8% with an impact of -1.37% on the portfolio.
It is a multi-state financial services holding company headquartered in Minneapolis, Minnesota. U.S. Bancorp provides financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services. Full year diluted EPS had an increase of 2.6% over 2014 and returned 72% of 2015 earnings to shareholders through dividends and share buybacks.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong returns of ROE 18.54% and ROA 10.42% that are over performing 76% of the companies in the Global Banks - Regional - US industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.19 that is far below the industry median of 1.50.
The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 4.86% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.65% and Donald Yacktman (Trades, Portfolio) with 0.51%.
The fund reduced its stake in AT&T Inc. (T) by 82.97%. The deal had an impact of -1.36% on the portfolio.
The company provides wireless and wireline telecommunications services in the U.S. and internationally. Due to the acquisition of DirecTV (DTV), third-quarter consolidated revenues grew by 19% versus the year-earlier period.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10, with easy returns of ROE 13.13% and ROA 3.83% that are over performing 58% of the companies in the Global Telecom Services industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 0.04 that is far below the industry median of 0.43.
Warren Buffett (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.96% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.34% and PRIMECAP Management (Trades, Portfolio) with 0.3%.
The fund reduced its stake in Wells Fargo & Co. (WFC) by 43.40% with an impact of -0.93% on the portfolio.
The company provides retail, commercial and corporate banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions in all 50 states, the District of Columbia and in other countries.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10, with strong returns of ROE 11.38% and ROA 1.33% that are over performing 71% of the companies in the Global Banks - Global industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.06 that is far below the industry median of 1.50.
The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 9.21% of outstanding shares, followed by Dodge & Cox with 1.4% and James Barrow (Trades, Portfolio) with 0.79%.
International Business Machines Corp. (IBM) saw a decrease of 87.68% by the fund. The deal had an impact of -0.81 on the portfolio.
The company creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes. During the third quarter the company again made progress in the transformation of its business to higher value, with strong growth in its strategic imperatives and expanded operating margins.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong returns of ROE 18.54% and ROA 10.42% that are over performing 85% of the companies in the Global Information Technology Services industry. Financial strength has a rating of 8 out of 10 with a cash-to-debt of 0.21 that is below the industry median of 7.51.
Warren Buffett (Trades, Portfolio) is the largest shareholder of the company among the gurus with 8.35% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.28% and Prem Watsa (Trades, Portfolio) with 0.14%.
The fund reduced its stake in Duke Energy Corporation (DUK) by 57.94% with an impact of -0.75% on the portfolio.
The company conducts its operations in three business segments: Regulated Utilities, International Energy and Commercial Power.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with weak returns of ROE 18.54% and ROA 10.42% that are under performing 66% of the companies in the Global Utilities - Regulated Electric industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.03 that is far below the industry median of 0.25.
The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.45% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.25%, Robert Bruce (Trades, Portfolio) with 0.03% and Ray Dalio (Trades, Portfolio) with 0.01%.
T Rowe reduced its stake in PNC Financial Services Group Inc. (PNC) by 47.12%. The deal had an impact of -0.68% on the portfolio.
The company is a diversified financial services company in the U.S. and is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking. Fourth quarter results reflected revenue growth over the third quarter in both net interest income and fee income, a continued focus on disciplined expense management, and higher loans and deposits. Driven by higher core net interest income, net interest income grew 1% compared to the third quarter.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10, with easy returns of ROE 8.66% and ROA 1.16% that are over performing 53% of the companies in the Global Banks - Regional - US industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 0.66 that is below the industry median of 1.50.
James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.77% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.56% and Diamond Hill Capital (Trades, Portfolio) with 0.44%.
The fund reduced its stake in Genuine Parts Co. (GPC) by 94.98% with an impact of -0.66% on the portfolio.
The company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials through its four operating segments.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong returns of ROE 21.67% and ROA 8.57% that are over performing 80% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.32 that is below the industry median of 0.75.
The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 1.52% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.51% and Jim Simons (Trades, Portfolio) with 0.37%.
The fund reduced its stake in General Electric Co. (GE) by 18.31%. The deal had an impact of -0.63% on the portfolio.
The company is a diversified infrastructure and financial services company. Its products and services range from aircraft engines, power generation, oil and gas production equipment, and household appliances to medical imaging, business and consumer financing and industrial products.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with negative returns of ROE -5.53% and ROA -1.04% that are under performing 85% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.52 that is far below the industry median of 0.74.
Ken Fisher (Trades, Portfolio) is the largest shareholder among the gurus with 0.31% of outstanding shares, followed by Dodge & Cox with 0.29%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.25% and Bill Nygren (Trades, Portfolio) with 0.15%.
