Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management LLC, tended to make his biggest fourth-quarter trades in existing stakes rather than new ones.
He did find some new buys, but those transactions tended to be much smaller than the additions to and reductions from his portfolio.
Pzena’s most noteworthy transaction in the fourth quarter was his increase in his stake in Dover Corp. (DOV, Financial), a Downers Grove, Illinois-based maker of industrial products and equipment, by more than 151%.
Pzena purchased 3,413,250 shares for an average price of $62.89 per share. The deal had a 1.29% impact on Pzena’s portfolio.
The guru’s stake in Dover is now 5,671,522 shares, which is 3.66% of Dover’s outstanding shares and 2.15% of Pzena’s total assets. Pzena is Dover’s leading shareholder among the gurus.
Dover has a P/E of 10.7, a forward P/E of 14.1, a P/B of 2.5 and a P/S of 1.3. GuruFocus gives Dover a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Dover sold for $59.94 per share Friday.
Pzena raised his stake in Staples Inc. (SPLS, Financial), a Framingham, Massachusetts-based office supply retail company, by nearly 31%. Pzena acquired 7,805,226 shares for an average price of $11.71 per share. The transaction had a 0.46% impact on his portfolio.
The purchase elevated Pzena’s stake to 33,304,711 shares, which is 5.17% of Staples’ outstanding shares and 2% of Pzena’s total assets. Pzena is Staples’ leading shareholder among the gurus.
Staples has a P/E of 174.9, a forward P/E of 9.2, a P/B of 1.1 and a P/S of 0.3 GuruFocus gives Staples a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
Staples sold for $8.92 per share Friday.
Pzena boosted his stake in Franklin Resources Inc. (BEN, Financial), a San Mateo, California-based financial services company, by more than 22%. Pzena bought 1,734,509 shares for an average price of $39.15 per share. The deal had a 0.39% impact on Pzena’s portfolio.
With the acquisition, Pzena’s stake in Franklin Resources went to 9,462,920 shares. The stake is 1.57% of Franklin Resources’ outstanding shares and 2.15% of Pzena’s total assets. Pzena is Franklin Resources’ leading shareholder among the gurus.
Franklin Resources has a P/E of 10.8, a forward P/E of 11.1, a P/B of 1.7 and a P/S of 2.7. GuruFocus gives Franklin Resources a Financial Strength rating of 8/10 and a Profitability and Growth rating of 9/10.
Franklin Resources sold for $33.71 per share Friday.
Pzena trimmed his stake in Microsoft Corp. (MSFT, Financial), a Redmond, Washington-based computer and consumer electronics company, by nearly 28%. Pzena sold 2,812,330 shares for an average price of $52.81 per share. The transaction had a -0.79% impact on Pzena’s portfolio.
Pzena’s stake in Microsoft dropped to 7,348,676 shares. Microsoft’s largest shareholder among the gurus is Jeff Ubben (Trades, Portfolio) with 75,273,091 shares. Ubben’s stake is 0.95% of Microsoft’s outstanding shares and 19.37% of his total assets. Dodge & Cox is a close second with 74,792,774 shares in its portfolio. Dodge & Cox’s stake is also 0.95% of Microsoft’s outstanding shares. It is 3.33% of Dodge & Cox’s total assets.
Microsoft has a P/E of 33.6, a forward P/E of 16.4, a P/B of 5.2 and a P/S of 4.6. GuruFocus gives Microsoft a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Microsoft sold for $50.16 per share Friday.
Pzena cut his stake in Cigna Corp. (CI, Financial), a Bloomfield, Connecticut-based managed health care company, by more than 32%. Pzena sold 604,585 shares for an average price of $137.56 per share. The deal had a -0.52% impact on the guru’s portfolio.
The sale left Pzena with a stake of 1,278,327 shares, which is 0.5% of Cigna’s outstanding shares and 1.16% of Pzena’s total assets. Dodge & Cox is Cigna’s largest shareholder among the gurus with 12,879,034 shares – 5% of Cigna’s outstanding shares and 1.75% of Dodge & Cox’s total assets.
Cigna has a P/E of 16.3, a forward P/E of 12.9, a P/B of 2.9 and a P/S of 0.9. GuruFocus gives Cigna a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Cigna sold for $133.05 per share Friday.
Pzena reduced his stake in Avent Inc. (AVT, Financial), a Phoenix-based electronics company, by nearly 27%. Pzena sold 1,518,209 shares for an average price of $44.99 per share. The transaction had a -0.41% impact on Pzena’s portfolio.
The guru’s stake in Avent is now 4,144,718 shares, the largest stake among the gurus. Pzena’s stake is 3.16% of Avent’s outstanding shares and 1.1% of Pzena’s total assets.
Avent has a P/E of 9.6, a forward P/E of 8, a P/B of 1.2 and a P/S of 0.2. GuruFocus gives Avent a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.
Avent sold for $40.12 per share Friday.
Pzena pared his stake in Baker Hughes Inc. (BHI, Financial), a Houston-based oilfield services company, by nearly 42%. Pzena sold 1,132,894 shares for an average price of $51.16 per share. The deal had a -0.38% impact on Pzena’s portfolio.
Pzena’s stake in Baker Hughes is now 1,574,808 shares, which is 0.36% of Baker Hughes’ outstanding shares and 0.45% of Pzena’s total assets. Dodge & Cox is Baker Hughes’ leading shareholder among the gurus with a stake of 33,771,551 shares. The stake is 7.74% of Baker Hughes’ outstanding shares and 1.77% of Dodge & Cox’s total assets.
Baker Hughes has a forward P/E of 83.3, a P/B of 1.2 and a P/S of 1.0. GuruFocus gives Baker Hughes a Financial Strength of 6/10 and a Profitability and Growth rating of 6/10.
Baker Hughes sold for $44.85 per share Friday.
Pzena sold his 373,824-share stake in Becton Dickinson & Co. (BDX, Financial), a Franklin Lakes, New Jersey-based medical technology company, for an average price of $147.95 per share. The transaction had a -0.32% impact on Pzena’s portfolio.
Becton Dickinson’s leading shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio). Vanguard’s 2,936,587-share stake is 1.39% of Becton Dickinson’s outstanding shares and 0.9% of Vanguard’s total assets.
Becton Dickinson has a P/E of 39.7, a forward P/E of 14.4, a P/B of 4 and a P/S of 2.7. GuruFocus gives Becton Dickinson a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Becton Dickinson sold for $135.25 per share Friday.
Pzena made five new buys in the fourth quarter – Seagate Technology PLC (STX, Financial), KKR & Co. LP (KKR, Financial), iShares MSCI Emerging Markets Indx (ETF) [EEM], Chevron Corp. (CVX, Financial) and Weatherford International PLC (WFT).
His most noteworthy acquisition was an 826,469-share stake in Seagate, a Cupertino, California-based computer data storage company. Pzena paid an average price of $37.91 per share in a deal that had a 0.19% impact on his portfolio.
Pzena’s stake is 0.28% of Seagate’s outstanding shares and 0.19% of Pzena’s total assets. Seagate’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with a 2,588,550-share stake that is 0.87% of Seagate’s outstanding shares and 0.29% of First Eagle’s total assets.
Seagate has a P/E of 16, a forward P/E of 8.3, a P/B of 5.2 and a P/S of 0.8. GuruFocus gives Seagate a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Seagate sold for $31.59 per share Friday.
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