Jeff Ubben (Trades, Portfolio) of Value Act Holdings invested in three new stakes in the second quarter – Morgan Stanley (MS, Financial), Trinity Industries Inc. (TRN, Financial) and Seagate Technology PLC (STX, Financial).
It was the first time Ubben added as many as three stakes to his portfolio since the third quarter of 2013.
Ubben purchased 38 million shares in Morgan Stanley, a New York-based financial services company, for an average price of $26.13 per share. The transaction had an 8.96% impact on Ubben’s portfolio.
The stake is 1.99% of Morgan Stanley’s outstanding shares and 8.96% of Ubben’s total assets. Ubben is Morgan Stanley’s leading shareholder among the gurus.
Morgan Stanley has a price-earnings (P/E) ratio of 14, a forward P/E of 11.9, a price-book (P/B) ratio of 0.8 and a price-sales (P/S) ratio of 1.8. GuruFocus gives Morgan Stanley a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with return on equity (ROE) of 5.51% that is higher than 54% of the companies in the Global Capital Markets industry and return on assets (ROA) of 0.57% that is lower than 63% of the companies in that industry.
Morgan Stanley sold for $30.55 per share at market close Thursday. The DCF Calculator gives Morgan Stanley a fair value of $23.22.
Ubben paid an average price of $18.36 per share for a 6 million-share stake in Trinity Industries, a Dallas-based conglomerate that operates five business groups: rail, construction products, inland barge, energy equipment and railcar leasing and management services. The acquisition had a 1.01% impact on Ubben’s portfolio.
The stake is 3.94% of Trinity Industries’ outstanding shares and 1.01% of Ubben’s portfolio. Ubben is Trinity Industries’ leading shareholder among the gurus.
Trinity Industries has a P/E of 6.3, a forward P/E of 11, a P/B of 1 and a P/S of 0.7. GuruFocus gives Trinity Industries a Financial Strength rating of 5/10 and a Profitability and Growth rating of 9/10 with ROE of 16.64% that is higher than 84% of the companies in the Global Railroads industry and ROA of 6.73% that is higher than 80% of the companies in that industry.
Trinity Industries sold for $24.38 per share Thursday. The DCF Calculator gives Trinity Industries a fair value of $41.42 with a 41% margin of safety.
The guru purchased 3 million shares in Seagate Technology, a data storage company with offices in Cupertino, California, and Dublin, for an average price of $24.4 per share. The deal had a 0.66% impact on Ubben’s portfolio.
The stake is 1% of Seagate’s outstanding shares and 0.66% of Ubben’s total assets. Richard Pzena (Trades, Portfolio) is Seagate’s leading shareholder among the gurus with a stake of 15,500,305 shares. The stake is 5.19% of Seagate’s outstanding shares and 2.36% of Pzena’s total assets.
Seagate has a P/E of 38.8, a forward P/E of 11.8, a P/B of 6 and a P/S of 0.9. GuruFocus gives Seagate a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 12.35% that is higher than 75% of the companies in the Global Data Storage industry and ROA of 2.80% that is lower than 51% of the companies in that industry.
Seagate sold for $32.07 per share Thursday. The DCF Calculator gives Seagate a fair value of $8.78.
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