Seven of David Dreman (Trades, Portfolio)’s top 10 transactions in the second quarter were exits from positions that have been in Dreman Value Management’s portfolio for most of the past six years. Dreman is the founder and chairman of the investment company.
The guru’s most noteworthy divestiture of the quarter was the sale of 809,156 shares in Associated Banc-Corp (ASB, Financial), a financial services company based in Green Bay, Wisconsin, for an average price of $17.8 per share. The transaction had a -1.66% impact on the portfolio.
Mairs and Power (Trades, Portfolio) is Associated Banc-Corp’s leading shareholder among the gurus with a stake of 3,400,759 shares. The stake is 2.26% of Associated Banc-Corp’s outstanding shares and 0.79% of Mairs and Power (Trades, Portfolio)’s total assets.
Associated Banc-Corp has a price-earnings (P/E) ratio of 17.1, a forward P/E of 14.4, a price-book (P/B) ratio of 1 and a price-sales (P/S) ratio of 2.9. GuruFocus gives Associated Banc-Corp a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 5.85% that is lower than 68% of the companies in the Global Banks – Regional – US industry and return on assets (ROA) of 0.66% that is lower than 65% of the companies in that industry.
Associated Banc-Corp sold for $19.81 per share Friday. The DCF Calculator gives Associated Banc-Corp a fair value of $12.41.
The guru sold 179,153 shares in Idacorp Inc. (IDA, Financial), a Boise, Idaho-based electricity holding company, for an average price of $73.74 per share. The divestiture had a -1.52% impact on the portfolio.
Ken Fisher (Trades, Portfolio) is Idacorp’s leading shareholder among the gurus with a holding of 537,327 shares. The position is 1.07% of Idacorp’s outstanding shares and 0.08% of the guru’s total assets.
Idacorp has a P/E of 20.8, a P/B of 1.9 and a P/S of 3.1. GuruFocus gives Idacorp a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 9.13% that is higher than 57% of the companies in the Global Utilities – Regulated Electric industry and ROA of 3.11% that is higher than 53% of the companies in that industry.
Idacorp sold for $77.18 per share Friday. The DCF Calculator gives Idacorp a fair value of $48.22.
The guru exited a 280,464-share position in Wintrust Financial Corp. (WTFC, Financial), an Illinois-based financial services company, for an average price of $49.96 per share. The deal had a -1.42% impact on the portfolio.
Wintrust’s leading shareholder among the gurus is Fisher with a stake of 1,313,318 shares. The stake is 2.54% of Wintrust’s outstanding shares and 0.13% of Fisher’s total assets.
Wintrust has a P/E of 17.7, a forward P/E of 14.4, a P/B of 1.2 and a P/S of 3. GuruFocus gives Wintrust a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 6.59% that is lower than 63% of the companies in the Global Banks – Regional – US industry and ROA of 0.76% that is lower than 58% of the companies in that industry.
Wintrust sold for $55.48 per share Friday. The DCF Calculator gives Wintrust a fair value of $33.5.
The guru divested 898,199 shares in Fulton Financial Corp. (FULT, Financial), a financial services company based in Lancaster, Pennsylvania, for an average price of $13.68 per share. The transaction had a -1.37% impact on the portfolio.
Fulton Financial’s leading shareholder among the gurus is Jim Simons (Trades, Portfolio) with 246,045 shares in the portfolio. The holding is 0.14% of Fulton’s outstanding shares and 0.01% of Simons’ total assets.
Fulton has a P/E of 16.6, a forward P/E of 14.9, a P/B of 1.2 and a P/S of 3.7. GuruFocus gives Fulton a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 7.34% that is lower than 58% of the companies in the Global Banks – Regional – US industry and ROA of 0.84% that is lower than 53% of the companies in that industry.
Fulton sold for $14.48 per share Friday. The DCF Calculator gives Fulton a fair value of $9.31.
The guru sold 850,502 shares in Brandywine Realty Trust (BDN, Financial), a Pennsylvania-based real estate investment trust (REIT), for an average price of $15.23 per share. The deal had a -1.36% impact on the portfolio.
NWQ Managers (Trades, Portfolio) is Brandywine’s leading shareholder among the gurus with a stake of 5,853,831 shares. The stake is 3.34% of Brandywine’s outstanding shares and 1.69% of NWQ Managers (Trades, Portfolio)’ total assets.
Brandywine has a P/B of 1.5 and a P/S of 5.1. GuruFocus gives Brandywine a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10 with ROE of -0.23% and ROA of 0.06% that are lower than 83% of the companies in the Global REIT – Office industry.
Brandywine sold for $16.44 per share Friday. The DCF Calculator gives Brandywine a fair value of -32 cents.
The guru sold 211,824 shares in ALLETE Inc. (ALE, Financial), an energy services company based in Duluth, Minnesota, for an average price of $57.66 per share. The transaction had a -1.35% impact on the portfolio.
Keeley Asset Management Corp (Trades, Portfolio). is ALLETE’s leading shareholder among the gurus with 474,464 shares. The holding is 0.96% of ALLETE’s outstanding shares and 1.27% of Keeley Asset Management’s total assets.
ALLETE has a P/E of 20, a forward P/E of 16.6, a P/B of 1.6 and a P/S of 2. GuruFocus gives ALLETE a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of 8.19% that is higher than 50% of the companies in the Global Utilities – Regulated Electric industry and ROA of 3.08% that is higher than 52% of the companies in that industry.
ALLETE sold for $60.51 per share Friday. The DCF Calculator gives ALLETE a fair value of $36.71.
Rounding out the guru’s top 10 transactions of the quarter was the divestiture of 748,207 shares in American Axle & Mfg. Holdings Inc. (AXL, Financial), a Detroit-based maker of components and systems for automobiles, for an average price of $15.58 per share. The deal had a -1.31% impact on the portfolio.
Barrow, Hanley, Mewhinney & Strauss is American Axle’s leading shareholder among the gurus with a stake of 3,141,112 shares. The stake is 4.11% of American Axle’s outstanding shares and 0.07% of the guru’s total assets.
American Axle has a P/E of 5.3, a forward P/E of 5.5, a P/B of 2.9 and a P/S of 0.3. GuruFocus gives American Axle a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 79.26% that is higher than 99% of the companies in the Global Auto Parts industry and ROA of 7.66% that is higher than 75% of the companies in that industry.
American Axle sold for $17.4 per share Friday. The DCF Calculator gives American Axle a fair value of $34.99 with a 50% margin of safety.
In all the guru sold out 153 holdings in the second quarter.
Disclosure: I do not own any stocks mentioned in this article.
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