The T. Rowe Price Equity Income Fund gained four new holdings over the second quarter. Shares of Diageo PLC (DEO, Financial), Apple (AAPL, Financial), Medtronic PLC (MDT, Financial) and PrairieSky Royalty Ltd (TSX:PSK, Financial) were purchased.
T. Rowe Price purchased 4.875 million shares in Diageo for an average price of 19 pounds ($25) per share. The British alcoholic beverages company headquartered in London has a market cap of 58 billion pounds with an enterprise value of 68.7 billion pounds. It has a P/E of 21.5 and a forward P/E of 21.7. It has a P/B of 7.1 and a P/S of 4.9. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 7 of 10. The transaction had an impact of 0.65% on their portfolio.
The Fund purchased 720,000 shares in Apple for an average price of $99 per share. The technology company has a market cap of $541.5 billion with an enterprise value of $566 billion. It has a P/E of 11.02 and a forward P/E of 11.3. It has a P/B of 4.2 and a P/S of 2.5. GuruFocus ranked its financial strength 7 of 10 and its profitability and growth 8 of 10. The transaction had a 0.33% impact on the Fund’s portfolio. T. Rowe Price previously sold out Apple in the first quarter of 2015.
The new holding of Medtronic was 750,000 shares purchased at an average price of $81 per share. The Irish medical device company, with operational headquarters in Minnesota, has a market cap of $120.9 billion with an enterprise value of $139.5 billion. It has a P/E of 34.8 and a forward P/E of 18.9. It has a P/B of 2.3 and a P/S of 4.3. GuruFocus ranked it financial strength a 6 of 10 and its profitability and growth 7 of 10. The transaction had an impact of 0.31% on T. Rowe Price’s portfolio.
The fund purchased 171,000 shares of PrairieSky for an average price of 25 Canadian dollars ($19) per share. The Canadian company collects royalties from petroleum and natural gas production and has a market cap of CA$5.8 billion with an enterprise value of CA$5.6 billion. It has a P/E of 84.9 and a forward P/E of 285.7. It has a P/B of 2.2 and a P/S of 20.2. GuruFocus ranked its financial strength 10 of 10 and its profitability and growth 4 of 10. The buy had a 0.02% impact on the portfolio.
T. Rowe Price was founded in 1937 in Baltimore, Maryland. Since 1985, it was managed by Brian Rogers until he stepped down in 2015, when the torch was passed to John Linehan. The fund is worth $21.1 million and holds stock in 110 companies. From 2013 to 2015, it had a three-year cumulative return of 30.2% on its investments with an excess gain of -22.1%. The fund invests in common stocks of established firms that are expected to pay above-average dividends and are out of favor or undervalued.
The Fund sold out EMC Corp. (EMC, Financial), Sun Life Financial (SLF, Financial), Twenty-First Century Fox (FOXA, Financial), Coca-Cola (KO, Financial) and Viacom Inc. (VIAB, Financial) during the second quarter.
T. Rowe Price sold 2,065,300 EMC shares at an average price of $27. The data recovery service company has a market cap of $55.4 billion with an enterprise value of $53.6 billion. It has a P/E of 27.5 and a forward P/E of 15.9. It has a P/B of 2.6 and a P/S of 2.2. GuruFocus ranked its financial strength 7 of 10 and its profitability and growth 8 of 10. The sale had an impact of -0.26% on the Fund’s portfolio. The Fund initially purchased EMC in the third quarter of 2015 and began selling in the first quarter of 2016.
Sun Life’s 920,100 shares were sold at an average price of $34 per share. The financial services and planning company has a market cap of $20.2 billion with an enterprise value of $20.5 billion. It has a P/E of 11.6 and a forward P/E of 11.5. It has a P/B of 1.4 and a P/S of 1.3. GuruFocus rated its financial strength 6 of 10 and its profitability and growth 5 of 10. The sale had an impact of -0.14% on the portfolio. Sun Life and T. Rowe Price have a long history together, going back at least five years.
Twenty-First Century Fox’s 875,969 shares were sold for an average price of $29. The mass media corporation has a market cap of $51.4 billion with an enterprise value of $67.2 billion. It has a P/E of 22.5 and a forward P/E of 12.9. It has a P/B of 3.6 and a P/S of 2. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 7 of 10. The transaction had a -0.11% impact on the portfolio. T. Rowe Price acquired these shares as a new holding in the third quarter of 2015.
T. Rowe Price sold 273,400 shares of Coca-Cola at an average price of $45. The beverage company has a market cap of $198.3 billion with an enterprise value of $223.1 billion. It has a P/E of 27.5 and a forward P/E of 23.4. It has a P/B of 7.9 and a P/S of 4.5. GuruFocus ranked its financial strength 6 of 10 and its profitability and growth 6 of 10. The sale had an impact of -0.06% on the Fund’s portfolio. Previously, the fund purchased stock in Coca-Cola in the fourth quarter of 2013, but sold out in the first quarter of 2014. The shares just sold were initially purchased in the first quarter of 2016.
The 223,600 shares of Viacom were sold at an average price of $41. The mass media company has a market cap of $18.1 billion with an enterprise value of $31.8 billion. It has a P/E of 8.9 and a forward P/E of 9.5. It has a P/B of 5.1 and a P/S of 1.5. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 8 of 10. The sale had an impact of -0.04% on T. Rowe Price’s portfolio. Viacom was a new holding in the first quarter of 2015.
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