Technology and Financial Services are the two most heavily weighted sectors in the portfolio of David Rolfe (Trades, Portfolio) of Wedgewood Partners Inc., and the guru was active in both in the first quarter.
Rolfe’s largest first-quarter transaction was a near divestiture of his stake in M&T Bank Corp. (MTB, Financial), a financial services company based in Buffalo, New York. Rolfe sold 3,068,523 shares for an average price of $108.61 per share. The deal had a -6.38% impact on Rolfe’s portfolio.
The remaining stake of 2,711 shares is 0.01% of Rolfe’s total assets. Warren Buffett (Trades, Portfolio) is M&T’s leading shareholder among the gurus with a stake of 5,382,040 shares. The stake is 3.38% of M&T’s outstanding shares and 0.46% of Buffett’s total assets.
M&T has a P/E of 15.5, a forward P/E of 13.5, a P/B of 1.2 and a P/S of 3.3. GuruFocus gives M&T a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 7.39% that is lower than 57% of the companies in the Global Banks – Regional – US industry and ROA of 1.05% that is higher than 63% of the companies in that industry.
M&T sold for $112.64 per share Friday. The DCF Calculator gives M&T a fair value of $77.91.
Rolfe purchased a 5,745,873-share stake in Charles Schwab Corp. (SCHW, Financial), a San Francisco-based brokerage and banking company, for an average price of $26.45 per share. The acquisition had a 2.92% impact on Rolfe’s portfolio.
The stake is 0.43% of Schwab’s outstanding shares and 2.92% of Rolfe’s total assets. Dodge & Cox is Schwab’s leading shareholder among the gurus with a stake of 103,001,887 shares. The stake is 7.79% of Schwab’s outstanding shares and 2.82% of Dodge & Cox’s total assets.
Schwab has a P/E of 23.6, a forward P/E of 21.1, a P/B of 2.8 and a P/S of 5.3. GuruFocus gives Schwab a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 11.15% that is higher than 70% of the companies in the Global Capital Markets industry and ROA of 0.90% that is lower than 57% of the companies in that industry.
Schwab sold for $26.15 per share Friday. The DCF Calculator gives Schwab a fair value of $11.66.
Rolfe trimmed his stake in Qualcomm Inc. (QCOM, Financial), a semiconductor company based in San Diego, by nearly 30%. The guru sold 2,494,711 shares for an average price of $48.65 in a transaction that had a -2.14% impact on Rolfe’s portfolio.
The remaining stake of 5,949,806 shares is 0.41% of Qualcomm’s outstanding shares and 5.52% of Rolfe’s total assets. Barrow, Hanley, Mewhinney & Strauss is Qualcomm’s leading shareholder among the gurus with a stake of 20,511,934 shares. The stake is 1.4% of Qualcomm’s outstanding shares and 1.6% of the guru’s total assets.
Qualcomm has a P/E of 16.4, a forward P/E of 11.6, a P/B of 2.6 and a P/S of 3.6. GuruFocus gives Qualcomm a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with ROE of 15.12% that is higher than 82% of the companies in the Global Communication Equipment industry and ROA of 9.79% that is higher than 87% of the companies in that industry.
Qualcomm sold for $52.12 per share Friday. The DCF Calculator gives Qualcomm a fair value of $56.31 with a 7% margin of safety.
Rolfe sold more than 22% of his stake in Express Scripts Holding Co. (ESRX, Financial), a St. Louis-based health care and pharmaceutical company. The guru sold 1,133,040 shares for an average price of $72.1 per share. The deal had a -1.7% impact on Rolfe’s portfolio.
The remaining stake of 3,987,074 shares is 0.63% of Express Scripts’ outstanding shares and 4.97% of Rolfe’s total assets. Dodge & Cox is Express Scripts’ leading shareholder among the gurus 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 19.9, a P/B of 3.2 and a P/S of 0.5. GuruFocus gives Express Scripts a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 15.04% that is higher than 71% of the companies in the Global Health Care Plans industry and ROA of 4.92% that is higher than 73% of the companies in that industry.
Express Scripts sold for $75.4 per share Friday. The DCF Calculator gives Express Scripts a fair value of $80.14 with a 6% margin of safety.
Rolfe raised his stake in Stericycle Inc. (SRCL, Financial), a compliance company based in Lake Forest, Illinois, by nearly 25%. Rolfe invested in 535,963 shares for an average price of $116.37 per share. The purchase had a 1.23% impact on Rolfe’s portfolio.
The stake, now 2,697,212 shares, is 3.18% of Stericycle’s outstanding shares and 6.17% of Rolfe’s total assets. Rolfe is Stericycle’s leading shareholder among the gurus.
Stericycle has a P/E of 34.9, a forward P/E of 20.4, a P/B of 3 and a P/S of 2.7. GuruFocus gives Stericycle a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 10.22% that is higher than 74% of the companies in the Global Waste Management industry and ROA of 4.75% that is higher than 76% of the companies in that industry.
Stericycle sold for $100.72 per share Friday. The DCF Calculator gives Stericycle a fair value of $62.33.
Rolfe hiked his stake in The Priceline Group Inc. (PCLN, Financial), a Norwalk, Connecticut-based online-travel services company, by more than 21%. Rolfe bought 46,591 shares for an average price of $1,194.56 per share. The transaction had a 1.16% impact on Rolfe’s portfolio.
The stake, now 280,581 shares, is 0.57% of Priceline’s outstanding shares and 6.56% of Rolfe’s total assets. Frank Sands (Trades, Portfolio) is Priceline’s leading shareholder among the gurus with a stake of 984,460 shares. The stake is 1.98% of Priceline’s outstanding shares and 3.75% of Sands’ total assets.
Priceline has a P/E of 24.3, a forward P/E of 18.3, a P/B of 6.8 and a P/S of 6.6. GuruFocus gives Priceline a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with ROE of 29.76% and ROA of 15.03% that are higher than 94% of the companies in the Global Leisure industry.
Priceline sold for $1,232.14 per share Friday. The DCF Calculator gives Priceline a fair value of $1,446.19 with a 15% margin of safety.
The guru boosted his stake in The Kraft Heinz Co. (KHC, Financial), a food processing company with offices in Chicago and Pittsburgh, by nearly 24%. Rolfe bought 771,693 shares for an average price of $74.67 per share. The deal had a 1.1% impact on Rolfe’s portfolio.
The stake, now 4,051,880 shares, is 0.33% of Kraft Heinz’s outstanding shares and 5.77% of Rolfe’s total assets. Buffett is Kraft Heinz’s leading shareholder among the gurus with a stake of 325,634,818 shares. The stake is 26.78% of Kraft Heinz’s outstanding shares and 19.9% of Buffett’s total assets.
Kraft Heinz has a P/E of 52, a forward P/E of 27, a P/B of 1.8 and a P/S of 3.1. GuruFocus gives Kraft Heinz a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 3.88% that is lower than 61% of the companies in the Global Packaged Foods industry and ROA of 2.38% that is lower than 56% of the companies in that industry.
Kraft Heinz sold for $83.73 per share Friday. The DCF Calculator gives Kraft Heinz a fair value of $17.34.
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