The largest first-quarter transactions made by John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, were not acquisitions but sales of stakes and portions of stakes in his portfolio. Here is a rundown of some of his largest deals.
Rogers sold his 7,536,792-share stake in Blount International Inc. (BLT, Financial), a Portland, Oregon-based maker of replacement parts, equipment and accessories for chain saws and other outdoor products, for an average price of $9.59 per share. The divestiture had a -0.89% impact on Rogers’ portfolio.
Michael Price (Trades, Portfolio) is Blount International’s leading shareholder among the gurus with a stake of 1,015,800 shares. The stake is 2.11% of Blount International’s outstanding shares and 1.42% of Price’s total assets.
Blount International has a P/B of 4.4 and a P/S of 0.6. GuruFocus gives Blount International a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with an ROE of -38.81% that is lower than 94% of the companies in the Global Tools & Accessories industry and an ROA of -6.58% that is lower than 87% of the companies in that industry.
Blount International sold for $10 per share Friday. The DCF Calculator gives Blount International a fair value of $-11.13.
Rogers trimmed his stake in JM Smucker Co. (SJM, Financial), an Orrville, Ohio-based maker of jellies and jams and other food products, by nearly 27%. Rogers sold 471,894 shares for an average price of $125.89 per share. The transaction had a -0.7% impact on Rogers’ portfolio.
The remaining stake of 1,301,810 shares is 1.09% of JM Smucker’s outstanding shares and 2.04% of Rogers’ total assets. Rogers is JM Smucker’s leading shareholder among the gurus.
JM Smucker has a PE of 25.0, a forward P/E of 21.8, a P/B of 2.5 and a P/S of 2.2. GuruFocus gives JM Smucker a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with an ROE of 9.60% and an ROA of 4.17% that are both lower than 53% of the companies in the Global Packaged Foods industry.
JM Smucker sold for $144.24 per share Friday. The DCF Calculator gives JM Smucker a fair value of $71.5.
Rogers sold more than 76% of his stake in Newell Brands Inc. (NWL, Financial), an Atlanta-based consumer goods company. The guru sold 1,016,627 shares for an average price of $39.19 per share. The deal had a -0.54% impact on Rogers’ portfolio.
The remaining stake of 307,974 shares is 0.11% of Newell Brands’ outstanding shares and 0.16% of Rogers’ total assets. Newell Brands’ leading shareholder among the gurus is Lee Ainslie (Trades, Portfolio) with a stake of 5,399,103 shares. The stake is 2.01% of Newell Brands’ outstanding shares and 3.78% of Ainslie’s total assets.
Newell Brands has a P/E of 38.4, a forward P/E of 16.6, a P/B of 7.3 and a P/S of 2.2. GuruFocus gives Newell Brands a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with an ROE of 18.99% that is higher than 83% of the companies in the Global Household & Personal Products industry and an ROA of 3.91% that is higher than 56% of the companies in that industry.
Newell Brands sold for $47.95 per share Friday. The DCF Calculator gives Newell Brands a fair value of $9.52.
The guru sold his 2,704,268-share stake in Media General Inc. (MEG, Financial), a broadcast and digital media company with offices in Richmond, Virginia, Providence, Rhode Island, and Austin, Texas, for an average price of $16.1 per share. The divestiture had a -0.52% impact on Rogers’ portfolio.
Media General’s leading shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with a stake of 5,697,346 shares. The stake is 4.41% of Media General’s outstanding shares and 0.61% of Gabelli’s total assets.
Media General has a forward P/E of 22.1, a P/B of 1.6 and a P/S of 1.7. GuruFocus gives Media General a Financial Strength rating of 4/10 and a Profitability and Growth rating of 4/10 with an ROE of -4.01% that is lower than 74% of the companies in the Global Broadcasting – TV industry and an ROA of -1.30% that is lower than 70% of the companies in that industry.
Media General sold for $17.62 per share Friday. The DCF Calculator gives Media General a fair value of $-4.82.
Rogers pared his stake in Philip Morris International Inc. (PM, Financial), a tobacco company based in New York City, by nearly 59% with the sale of 476,127 shares for an average price of $91.51 per share. The transaction had a -0.5% impact on Rogers’ portfolio.
The remaining stake of 336,836 shares is 0.02% of Philip Morris’ outstanding shares and 0.4% of Rogers’ total assets. Barrow, Hanley, Mewhinney & Strauss is Philip Morris’ leading shareholder among the gurus 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 23.9, a forward P/E of 21.1 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 with an ROA of 19.84% that is higher than 76% of the companies in the Global Tobacco industry.
Philip Morris sold for $101.30 per share Friday. The DCF Calculator gives Philip Morris a fair value of $61.34.
Rogers sold his 316,232-share stake in Towers Watson & Co. (TW, Financial), a professional services company based in Arlington, Virginia, for an average price of $125.73 per share. The divestiture had a -0.49% impact on Rogers’ portfolio.
Seven other gurus sold their stakes in Towers Watson in the first quarter. No gurus currently hold stakes in the company.
Towers Watson has a P/E of 20.1, a forward P/E of 13.4, a P/B of 2.9 and a P/S of 2.3. GuruFocus gives Towers Watson a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10 with an ROE of 14.27% that is higher than 68% of the companies in the Global Business Services industry and an ROA of 8.00% that is higher than 74% of the companies in that industry.
Towers Watson sold for $123 per share Friday. The DCF Calculator gives Towers Watson a fair value of $94.48.
Rogers sold nearly one-fourth of his stake in Mattel Inc. (MAT, Financial), a toy company based in El Segundo, California. The guru sold 1,443,895 shares for an average price of $30.26 per share. The deal had a -0.47% impact on Rogers’ portfolio.
The remaining stake of 4,419,470 shares is 1.3% of Mattel’s outstanding shares and 1.79% of Rogers’ total assets. Mattel’s leading shareholder among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with a stake of 7,900,063 shares. The stake is 2.32% of Mattel’s outstanding shares and 1.25% of the guru’s total assets.
Mattel has a P/E of 29.6, a forward P/E of 17.5, a P/B of 4.2 and a P/S of 1.9. GuruFocus gives Mattel a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with an ROE of 13.66% that is higher than 78% of the companies in the Global Leisure industry and an ROA of 5.66% that is higher than 71% of the companies in that industry.
Mattel sold for $31.08 per share Friday. The DCF Calculator gives Mattel a fair value of $11.24.
Rogers trimmed his stake in International Speedway Corp. (ISCA, Financial), a Daytona Beach, Florida-based owner and manager of NASCAR and IndyCar race tracks, by almost 21%. Rogers sold 1,096,978 shares for an average price of $34.01 per share. The transaction had a -0.44% impact on Rogers’ portfolio.
The remaining stake of 4,218,675 shares is 9.08% of International Speedway’s outstanding shares and 1.88% of Rogers’ total assets. Rogers is International Speedway’s leading shareholder among the gurus.
International Speedway has a P/E of 25.3, a forward P/E of 19.8, a P/B of 1.1 and a P/S of 2.4. GuruFocus gives International Speedway a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with an ROE of 4.47% that is lower than 52% of the companies in the Global Leisure industry and an ROA of 2.85% that is that is higher than 54% of the companies in that industry.
International Speedway sold for $33.54 per share Friday. The DCF Calculator gives International Speedway a fair value of $14.23.
Start a free seven-day trial of Premium Membership to GuruFocus.
