PRIMECAP Management (Trades, Portfolio) trimmed its stakes in three companies – Texas Instruments Inc. (TXN, Financial), Trimble Navigation Ltd. (TRMB, Financial) and Accuray Inc. (ARAY, Financial) – on July 31.
PRIMECAP sold 4,747,155 shares of Texas Instruments, a Dallas-based semiconductor company, for $69.75 per share. The sale of nearly 9% of PRIMECAP’s stake in the company had a -0.34% impact on its portfolio.
The remaining stake of 49,782,831 shares is 4.96% of Texas Instruments’ outstanding shares and 3.61% of PRIMECAP’s total assets. PRIMECAP is Texas Instruments’ leading shareholder among the gurus.
Texas Instruments has a price-earnings (P/E) ratio of 23.2, a forward P/E of 22.4, a price-book (P/B) ratio of 6.9 and a price-sales (P/S) ratio of 5.6. GuruFocus gives Texas Instruments a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with return on equity (ROE) of 30.46% and return on assets (ROA) of 18.86% that are higher than 96% of the companies in the Global Semiconductors industry.
Texas Instruments’ net income increased to $779 million per share, or 76 cents per share, in the second quarter compared to $696 million, or 65 cents per share, in the year-ago quarter.
Texas Instruments sold for $68.88 per share Wednesday. The DCF Calculator gives Texas Instruments a fair value of $33.65.
PRIMECAP reduced its position in Trimble Navigation, a Sunnyvale, California-based company that makes GPS positioning and precision-measurement products, by nearly 7%. PRIMECAP sold 886,014 shares for $26.44 per share. The transaction had a -0.02% impact on PRIMECAP’s portfolio.
The remaining stake of 12,433,802 shares is 4.95% of Trimble’s outstanding shares and 0.34% of PRIMECAP’s total assets. PRIMECAP is Trimble’s leading shareholder among the gurus.
Trimble has a P/E of 54.9, a forward P/E of 21, a P/B of 3 and a P/S of 3.1. GuruFocus gives Trimble a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 4.74% that is lower than 53% of the companies in the Global Scientific and Technical Instruments industry and ROA of 2.87% that is higher than 50% of the companies in that industry.
Trimble reported a second-quarter profit of $74.1 million, or 29 cents per share, up from $74 million, or 28 cents per share, in the second quarter of 2015.
Trimble sold for $27 per share Wednesday. The DCF Calculator gives Trimble a fair value of $4.74.
PRIMECAP sold more than 12% of its stake in Accuray, a Sunnyvale, California-based maker of the CyberKnife, a noninvasive surgical device. PRIMECAP sold 1,050,900 shares for $5.48 per share. The deal had a -0.01% impact on PRIMECAP’s portfolio.
The remaining stake of 7,493,600 shares is 9.26% of Accuray’s outstanding shares and 0.04% of PRIMECAP’s total assets. PRIMECAP is Accuray’s leading shareholder among the gurus.
Accuray has a P/B of 7.1 and a P/S of 1.1. GuruFocus gives Accuray a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10 with ROE of -35.18% that is lower than 73% of the companies in the Global Medical Devices industry and ROA of -4.19% that is lower than 56% of the companies in that industry.
Accuray sold for $5.5 per share Wednesday. The DCF Calculator gives Accuray a fair value of $-3.21.
Disclosure: I own no shares in any of the companies mentioned in this article.
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