Richard Pzena (Trades, Portfolio), founder and co-CIO of Pzena Investment Management LLC, invested in five new buys in the fourth quarter, but most had modest impacts on his portfolio.
His most noteworthy transactions were deals in which he sold part or all of stakes in his portfolio, although his purchase of 3,413,250 shares of Dover Corp. (DOV, Financial), a Downers Grove, Illinois-based manufacturer of specialized industrial products and equipment in six segments, was his most significant transaction.
Pzena paid an average price of $62.89 per share in a deal that had a 1.29% impact on his portfolio.
The acquisition raised Pzena’s stake by more than 151% to 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 11.2, a forward P/E of 14.9, a P/B of 2.6 and a P/S of 1.4. GuruFocus gives Dover a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Dover sold for $61.11 per share Friday.
Pzena increased his stake in Staples Inc. (SPLS, Financial), a Framingham, Massachusetts-based office supply store chain, by nearly 31%. Pzena purchased 7,805,226 shares for an average price of $11.71 per share. The transaction had a 0.46% impact on Pzena’s portfolio.
Pzena’s stake, now 33,304,711 shares, is the largest in his portfolio. It is 5.17% of Staples’ outstanding shares and 1.95% of Pzena’s total assets. Pzena is Staples’ leading shareholder among the gurus.
Staples has a P/E of 158.1, a forward P/E of 10, a P/B of 1.2 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 $9.49 per share Friday.
Pzena boosted his stake in Franklin Resources Inc. (BEN, Financial), a San Mateo, California-based holding company that with its subsidiaries is a global investment firm, 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.
The purchase raised Pzena’s stake to 9,462,920 shares – 1.6% 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 11, a forward P/E of 12.1, a P/B of 1.8 and a P/S of 2.9. GuruFocus gives Franklin Resources a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Franklin Resources sold for $36.15 per share Friday.
Pzena trimmed his stake in Microsoft Corp. (MSFT, Financial), a Seattle-based computer and consumer electronics company, by nearly 28%. He 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 remaining stake of 7,348,676 shares is 0.09% of Microsoft’s outstanding shares and 2.52% of Pzena’s total assets. Dodge & Cox is Microsoft’s leading shareholder among the gurus with a stake of 66,559,905 shares. The stake is 0.84% of Microsoft’s outstanding shares and 3.62% of Dodge & Cox’s total assets.
Microsoft has a P/E of 36.5, a forward P/E of 16.2, a P/B of 5.3 and a P/S of 4.7. GuruFocus gives Microsoft a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Microsoft sold for $51.3 per share Friday.
The guru pared his stake in Cigna Corp. (CI, Financial), a managed health care company based in Bloomfield, Connecticut, 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 his portfolio.
Pzena’s stake in Cigna is now 1,278,327 shares, which is 0.5% of Cigna’s outstanding shares and 1.16% of Pzena’s total assets. With a stake of 13,515,865 shares, Dodge & Cox is Cigna’s leading shareholder among the gurus. The stake is 5.25% of Cigna’s outstanding shares and 1.94% of Dodge & Cox’s total assets.
Cigna has a P/E of 17.3, a forward P/E of 13.9, a P/B of 3.1 and a P/S of 1. GuruFocus gives Cigna a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Cigna sold for $141.25 per share Friday.
Pzena reduced his stake in Avnet 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.
Pzena’s stake, now 4,144,718 shares, is 3.16% of Avnet’s outstanding shares and 1.1% of Pzena’s total assets. Pzena is Avnet’s leading shareholder among the gurus.
Avnet has a P/E of 10, a forward P/E of 8.3, a P/B of 1.2 and a P/S of 0.2. GuruFocus gives Avnet a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.
Avnet sold for $41.44 per share Friday.
The guru cut his stake in Baker Hughes Inc. (BHI, Financial), an oil and gas company based in Houston, by nearly 42%. Pzena sold 1,132,894 shares for an average price of $51.16 per share in a deal that had a -0.38% impact on the guru’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. Baker Hughes’ leading shareholder among the gurus is Dodge & Cox with a stake of 33,970,635 shares. The stake is 7.76% of Baker Hughes’ outstanding shares and 1.54% of Dodge & Cox’s total assets.
Baker Hughes has a forward P/E of 82, a P/B of 1.2 and a P/S of 1.2. GuruFocus gives Baker Hughes a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
Baker Hughes sold for $44.25 per share Friday.
Pzena downsized his stake in American International Group Inc. (AIG, Financial), a New York-based insurance and financial services company, by more than 7%. Pzena sold 609,751 shares for an average price of $61.09 per share. The transaction had a -0.22% impact on Pzena’s portfolio.
Pzena’s remaining stake of 7,578,036 shares is 0.66% of AIG’s outstanding shares and 2.9% of Pzena’s total assets. AIG’s leading shareholder among the gurus is Carl Icahn (Trades, Portfolio) with a stake of 42,244,071 shares. The stake is 3.68% of AIG’s outstanding shares and 8.89% of Icahn’s total assets.
AIG has a P/E of 36, a forward P/E of 8.8, a P/B of 0.7 and a P/S of 1.2. GuruFocus gives AIG a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
AIG sold for $51.09 per share Friday.
Pzena sold nearly 10% of his stake in Intel Corp. (INTC, Financial), a Santa Clara, California-based semiconductor company. The guru sold 1,064,389 shares for an average price of $33.89. The deal had a -0.2% impact on Pzena’s portfolio.
Pzena’s remaining stake of 10,200,462 shares is 0.22% of Intel’s outstanding shares and 2.17% of Pzena’s total assets. PRIMECAP Management (Trades, Portfolio) is Intel’s leading shareholder among the gurus with a stake of 29,905,160 shares. The stake is 0.63% of Intel’s outstanding shares and 1.05% of PRIMECAP’s total assets.
Intel has a P/E of 12.8, a forward P/E of 11.3, a P/B of 2.3 and a P/S of 2.6. GuruFocus gives Intel a Financial Strength rating of 9/10 and a Profitability and Growth rating of 9/10.
Intel sold for $29.8 per share Friday.
Pzena sold his 373,824-share stake in Becton Dickinson & Co. (BDX, Financial), a medical equipment company based in Franklin Lakes, New Jersey, for an average price of $157.95 per share. The divestiture had a -0.32% impact on Pzena’s portfolio.
Vanguard Health Care Fund (Trades, Portfolio) is Becton Dickinson’s leading shareholder among the gurus with a stake of 2,937,587 shares. The 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 45.8, a forward P/E of 16.5, a P/B of 4.4 and a P/S of 2.8. GuruFocus gives Becton Dickinson a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Becton Dickinson sold for $149.64 per share Friday.
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