Ken Heebner (Trades, Portfolio) is the co-founder of Capital Growth Management, a money manager with more than $6 billion under management. During the third quarter the guru’s largest trades were as follows:
He reduced his stake in Lennar Corp. (LEN) by 65.88% with an impact of -7.42% on the portfolio.
It is a homebuilder and a provider of financial services. Its homebuilding operations include the construction and sale of single-family attached and detached homes and to a lesser extent multilevel residential buildings. Third-quarter net earnings were $235.8 million, or $1.01 per diluted share, compared to $223.3 million, or 96 cents per diluted share, in the same quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 14.77% and ROA of 6.06% that are outperforming 77% of the companies in the Global Residential Construction industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.13 that is below the industry median of 2.08.
Heebner is the largest shareholder among the gurus with 0.82% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.79%, Third Avenue Management (Trades, Portfolio) with 0.43% and Steven Cohen (Trades, Portfolio) with 0.28%.
The investor acquired 2.22 million shares in Applied Materials Inc. (AMAT) with an impact of 3.16% on the portfolio.
The company provides manufacturing equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries. During the third quarter the company generated $981 million in cash from operations, paid dividends of $108 million and used $196 million to repurchase 9 million shares of common stock. Net sales grew 13% year over year and 15% quarter on quarter.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 20.02% and ROA of 10.55% that are outperforming 86% of the companies in the Global Semiconductor Equipment & Materials industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.98 that is below the industry median of 1.67.
Bill Nygren (Trades, Portfolio) is the largest shareholder with 0.84% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.83%, PRIMECAP Management (Trades, Portfolio) with 0.54%, Jim Simons (Trades, Portfolio) with 0.41%, Joel Greenblatt (Trades, Portfolio) with 0.14% and Stanley Druckenmiller (Trades, Portfolio) with 0.07%.
The guru bought 3.56 million shares in Micron Technology Inc. (MU) with an impact of 2.99% on the portfolio.
The company and its subsidiaries manufacture semiconductor systems. Its products include DRAM, NAND Flash and NOR Flash, the basis for solid-state drives, modules, multichip packages and other system solutions.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -2.26% and ROA of -1.08% that are underperforming 69% of the companies in the Global Semiconductor Memory industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.44 that is below the industry median of 1.67%.
The largest shareholder among the gurus is PRIMECAP Management with 5.97% of outstanding shares followed by Donald Smith (Trades, Portfolio) with 1.46%, Pioneer Investments (Trades, Portfolio) with 0.3%, Cohen with 0.27%, Jerome Dodson (Trades, Portfolio) with 0.22% and Druckenmiller with 0.09%.
The investor acquired 1,008,000 shares in Western Digital Corp. (WDC) with an impact of 2.78% on the portfolio.
It is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content. Its products include HDDs and SSDs. First-quarter revenue was $4.7 billion, and operating income was $232 million. These results compared to a revenue of $3.4 billion and operating income of $322 million in the same quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -4.04% and ROA -1.89% that are underperforming 77% of the companies in the Global Data Storage industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.33 that is a few above the industry median of 1.50.
The largest shareholder among the gurus is T Rowe Price Equity Income Fund with 1.11% of outstanding shares followed by Charles Brandes (Trades, Portfolio) with 0.77%, First Pacific Advisors (Trades, Portfolio) with 0.66%, John Burbank (Trades, Portfolio) with 0.42%, PRIMECAP Management with 0.41% and David Tepper (Trades, Portfolio) with 0.4%.
The guru reduced his shares in Whirlpool Corp. (WHR) by 51.39% with an impact of -2.75% on the portfolio.
The company is a manufacturer and marketer of home appliances. It produces and sells washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, air purifiers and other typical household appliances. During the third quarter GAAP net earnings was $238 million, or $3.10 per diluted share, compared to $235 million, or $2.95 per diluted share, in the same quarter of a year before. Net sales were $5.2 billion, compared to $5.3 billion in the third quarter of the prior year.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 18.32% and ROA of 4.51% that are outperforming 56% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.19 that is below the industry median of 1.15.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus, with 2.78% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 2.41%, Nygren with 2.3%, Tepper with 1.54%, Pioneer Investments with 0.32%, Greenblatt with 0.17% and PRIMECAP Management with 0.11%.
The guru bought 468,000 shares in Adobe Systems Inc. (ADBE) with an impact of 2.4% on the portfolio.
The company offers a line of software and services used by creative professionals, marketers, developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling operating systems. Third-quarter revenue grew 20% year over year, and operating income increased by 50% year over year.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 13.99% and ROA of 8.30% that are outperforming 73% of the companies in the Global Software - Application industry. Financial strength has a rating of 7 out of 10 with cash to debt of 2.32 that is below the industry median of 10.15.
The largest shareholder among the gurus is PRIMECAP Management with 5.65% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 1.94%, Spiros Segalas (Trades, Portfolio) with 1.19%, Steve Mandel (Trades, Portfolio) with 0.93% and Eric Mindich (Trades, Portfolio) with 0.34%.
The guru increased his stake in Citigroup Inc. (C) by 49.08% with an impact of 2.38% on the portfolio.
It is a financial services holding company. It provides financial products and services including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of 5.94% and ROA of 0.82% that are underperforming 68% of the companies in the Global Banks – Global industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.65 that is below the industry median of 2.06.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.72% of outstanding shares followed by HOTCHKIS & WILEY with 0.61%, First Pacific Advisors with 0.49%, Steven Romick (Trades, Portfolio) with 0.36%, Diamond Hill Capital with 0.35%, Nygren with 0.35% and Richard Pzena (Trades, Portfolio) with 0.32%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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