Jeremy Grantham (Trades, Portfolio) of GMO LLC reduced more than 200 stakes in the first quarter. His top six reductions brought prices that exceeded their present value, according to the DCF Calculator.
In the guru’s most significant trade of the quarter, Grantham trimmed his stake in Charter Communications Inc. (CHTR, Financial), a telecommunications and mass media company based in Stamford, Connecticut, by more than 60%. The guru sold 2,844,796 shares for an average price of $198.44 per share. The deal had a -2.07% impact on Grantham’s portfolio.
The remaining stake of 1,875,271 shares is 1.84% of Charter’s outstanding shares and 1.57% of Grantham’s total assets. Charter’s leading shareholder among the gurus is Warren Buffett (Trades, Portfolio) with a stake of 9,337,495 shares. The stake is 9.18% of Charter’s outstanding shares and 1.63% of Buffett’s total assets.
Charter has a forward P/E of 59.5 and a P/S of 2.3. GuruFocus gives Charter a Financial Strength rating of 3/10 and a Profitability and Growth rating of 6/10.
Charter sold for $223.08 per share Wednesday. The DCF Calculator gives Charter a fair value of $-39.92.
Grantham sold more than 79% of his stake in JD.com Inc. (JD, Financial), a Beijing-based ecommerce company. Grantham sold 16,696,274 shares for an average price of $26.32 per share. The transaction had a -1.94% impact on the guru’s portfolio.
The remaining stake of 4,321,559 shares is 0.31% of JD.com’s outstanding shares and 0.43% of Grantham’s total assets. Chase Coleman (Trades, Portfolio) is JD.com’s leading shareholder among the gurus with a stake of 44,005,044 shares. The stake is 3.15% of JD.com’s outstanding shares and 16.82% of Coleman’s total assets.
JD.com has a forward P/E of 76.3, a P/B of 6.4 and a P/S of 0.9. GuruFocus gives JD.com a Financial Strength rating of 6/10 and a Profitability and Growth rating of 2/10.
JD.com sold for $21.24 per share Wednesday. The DCF Calculator gives JD.com a fair value of $-11.62.
Grantham reduced his stake in Philip Morris International Inc. (PM, Financial), a tobacco company based in New York City, by nearly 39%. Grantham sold 5,178,785 shares for an average price of $91.51 per share. The deal had a -1.64% impact on Grantham’s portfolio.
The remaining stake of 8,192,430 shares is 0.53% of Philip Morris’ outstanding shares and 3% of Grantham’s total assets. Philip Morris’ leading shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with a stake of 20,914,105 shares. The stake is 1.35% of Philip Morris’ outstanding shares and 3.14% of the guru’s total assets.
Philip Morris has a P/E of 24, a forward P/E of 20.9 and a P/S of 5.9. GuruFocus gives Philip Morris a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10.
Philip Morris sold for $101.72 per share Wednesday. The DCF Calculator gives Philip Morris a fair value of $52.2.
The guru pared his stake in Baidu Inc. (BIDU, Financial), a Beijing-based web services company, by more than 57% with the sale of 2,092,874 shares for an average price of $170.13 per share. The transaction had a -1.42% impact on Grantham’s portfolio.
The remaining stake of 1,559,372 shares is 0.45% of Baidu’s outstanding shares and 1.11% of Grantham’s total assets. Frank Sands (Trades, Portfolio) is Baidu’s leading shareholder among the gurus with a stake of 8,112,824 shares. The stake is 2.34% of Baidu’s outstanding shares and 4.57% of Sands’ total assets.
Baidu has a P/E of 11.5, a forward P/E of 19.6, a P/B of 4.6 and a P/S of 5.4. GuruFocus gives Baidu a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Baidu sold for $168.71 per share Wednesday. The DCF Calculator gives Baidu a fair value of $159.24.
Grantham trimmed his stake in Amazon.com (AMZN, Financial), a Seattle-based ecommerce company, by more than 24% with the sale of 409,204 shares for an average price of $568.41 per share. The deal had a -0.99% impact on Grantham’s portfolio.
The remaining stake of 1,275,481 shares is 0.27% of Amazon.com’s outstanding shares and 2.83% of Grantham’s total assets. Amazon.com’s leading shareholder among the gurus is Andreas Halvorsen (Trades, Portfolio) with a stake of 3,437,493 shares. The stake is 0.73% of Amazon.com’s outstanding shares and 8.98% of Halvorsen’s total assets.
Amazon.com has a P/E of 299, a forward P/E of 56.8, a P/B of 23.3 and a P/S of 3.1. GuruFocus gives Amazon.com a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Amazon.com sold for $726.64 per share Wednesday. The DCF Calculator gives Amazon.com a fair value of $26.
The guru sold nearly 23% of his stake in UnitedHealth Group Inc. (UNH, Financial), a Minnetonka, Minnesota-based managed health care company. Grantham sold 1,415,137 shares for an average price of $118.04 per share. The transaction had a -0.6% impact on Grantham’s portfolio.
The remaining stake of 4,811,930 shares is 0.51% of UnitedHealth’s outstanding shares and 2.32% of Grantham’s total assets. Vanguard Health Care Fund (Trades, Portfolio) is UnitedHealth’s leading shareholder among the gurus with a stake of 23,462,000 shares. The stake is 2.47% of UnitedHealth’s outstanding shares and 6.68% of Vanguard’s total assets.
UnitedHealth has a P/E of 22.6, a forward P/E of 15.6, a P/B of 3.7 and a P/S of 0.8. GuruFocus gives UnitedHealth a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
UnitedHealth sold for $140.4 per share Wednesday. The DCF Calculator gives UnitedHealth a fair value of $91.16.
Grantham reduced his stake in Express Scripts Holding Co. (ESRX, Financial), a pharmacy benefit management organization based in St. Louis, by more than 49%. Grantham sold 1,578,735 shares for an average price of $72.1 per share. The deal had a -0.5% impact on Grantham’s portfolio.
The remaining stake of 1,624,557 shares is 0.26% of Express Scripts’ outstanding shares and 0.42% of Grantham’s total assets. Express Script’s leading shareholder among the gurus is Dodge & Cox with a stake of 22,069,813 shares. The stake is 3.49% of Express Scripts’ outstanding shares and 1.48% of Dodge & Cox’s total assets.
Express Scripts has a P/E of 20.3, a forward P/E of 11.2, a P/B of 3.3 and a P/S of 0.5. GuruFocus gives Express Scripts a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.
Express Scripts sold for $76.86 per share Wednesday. The DCF Calculator gives Express Scripts a fair value of $80.14 with a margin of safety of 4%.
Grantham pared his stake in Johnson & Johnson (JNJ, Financial), a New Jersey-based medical equipment and pharmaceutical company, by more than 9% with the sale of 934,036 shares for an average price of $103.39 per share. The transaction had a -0.34% impact on Grantham’s portfolio.
The remaining stake of 9,036,395 shares is 0.33% of Johnson & Johnson’s outstanding shares and 3.65% of Grantham’s total assets. Barrow, Hanley, Mewhinney & Strauss is Johnson & Johnson’s leading shareholder among the gurus with a stake of 15,327,465 shares. The stake is 0.56% of Johnson & Johnson’s outstanding shares and 2.54% of the guru’s total assets.
Johnson & Johnson has a P/E of 21.1, a forward P/E of 16.5, a P/B of 4.4 and a P/S of 4.6. GuruFocus gives Johnson & Johnson a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Johnson & Johnson sold for $115.8 per share Wednesday. The DCF Calculator gives Johnson & Johnson a fair value of $58.86.
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