The founder of Point72 Asset Management, Steven Cohen (Trades, Portfolio) increased his stake in PVH Corp. (PVH, Financial) by 9731.25%, adding an additional 467,100 shares of the company in the second quarter. The trade had a 0.3% impact on Cohen’s portfolio. He now owns 471,900 shares of the company.
PVH Corp.'s history dates back more than 130 years, when it was originally founded in 1881 by Dramin Jones. Jones was a Prussian immigrant who started the company as D. Jones & Sons. After Jones passed away in 1903, D. Jones & Sons merged with Moses Phillips, a shirt company that began as a family business. After the companies successfully merged, Isaac Phillips, the son of Moses Phillips, met with Dutch immigrant John Manning Van Heusen, who had recently invented a soft folding collar, a new process that fused cloth on a curve that captured the stiff collar look of the era, while providing the consumer with a more comfortable fit. Phillips and Van Heusen formed an alliance in 1919 and changed the company name to PVH Corp., or Phillips Von Heusen.
PVH owns a diversified portfolio of brands which include Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow and Speedo. The company has grown to become one of the largest apparel companies in the world.
PVH Corp has a market cap of $8.75 billion, a P/E ratio of 13.21, an enterprise value of $11.38 billion, a P/B ratio of 1.82 and a quick ratio of 1.10.
According to GuruFocus, PVH has a 5 of 10 financial strength rating with a cash to debt ratio of 0.22, an equity to asset ratio of 0.43 and a Piotroski F-Score of 7, indicating a very healthy business situation. The company also has an 8 of 10 profitability and growth rating with an operating margin of 8.78%, a net-margin of 8.34%, a ROE of 14.63% and a ROC (Joel Greenblatt (Trades, Portfolio)) of 50.63, ranking it above 86% of the 740 companies in the global apparel manufacturing industry.
Steven Cohen (Trades, Portfolio) likely increased his stake in PVH for the following reasons:
- The company has established itself as one of the largest branded apparel companies in the world.
- The company owns a diversified portfolio of popular products and well-known brands in the apparel industry.
- The company has a Piotroski F-Score of 7 indicates a very healthy financial situation.
- The company has 135 years of operating experience.
- The company is trading below its intrinsic value. According to the DCF calculator (earnings based), the company is worth $118.58, which gave Cohen an estimated 20.7% margin of safety. Cohen paid at an average price of $94.06 per share.
Guru Steven A. Cohen is a multi-billionaire and the founder of Point72 Asset Management. The investment firm is headquartered in Stamford, Connecticut, and maintains affiliated offices in New York, London, Hong Kong, Tokyo and Singapore. Point72 Asset Management currently has approximately 1,000 employees, which includes more than 250 investment professionals. Point72 Asset Management currently holds 705 stocks with a total value of $14.69 million.
Disclosure: Author holds no position.
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