Dodge & Cox manages over $104 billion in separate accounts and mutual funds. The firm employs a team research approach in making investment decisions and the investment decisions are made by the Investment Policy Committee. The firm made the following buys during the third quarter:
Dodge & Cox established a new position of 32,979,554 shares of Johnson Controls International PLC. (JCI, Financial). The trade had an impact of 1.3% on the portfolio.
The company provides products, services and solutions to optimize energy and operational efficiencies of buildings, lead-acid automotive batteries and batteries for hybrid and electric vehicles and interior systems for automobiles. Adjusted net sales were $9.4 billion versus $8.7 billion in the third quarter of a year before and adjusted segment EBIT margin was 90 basis points higher than the third quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The return on equity (ROE) of -6.72% and return on assets (ROA) of -2.32% are underperforming 88% of the companies in the Global Auto Parts industry. Financial strength has a rating of 5 out of 10. The cash to debt ratio of 0.04 is below the industry median of 0.51.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 4.01% of outstanding shares, followed by Dodge & Cox with 3.52%, Chris Davis (Trades, Portfolio) with 1.56%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.98%, Hotchkis & Wiley with 0.95%, Jeremy Grantham (Trades, Portfolio) with 0.44% and Jana Partners (Trades, Portfolio) with 0.6%.
The firm increased its position in Anadarko Petroleum Corp. (APC, Financial) by 148.97%. The trade had an impact of 0.82% on the portfolio.
The company is engaged in the exploration and production of oil and natural gas. The company's three operating segments are Oil and Gas Exploration and Production, Midstream and Marketing. Third quarter net loss attributable to common stockholders was $830 million, or $1.61 per share (diluted), and net cash provided by operating activities in the third quarter was $785 million.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of -30.43% and ROA of -8.17% are underperforming 61% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 4 out of 10. The cash to debt ratio of 0.25 is below the industry median of 0.61.
Another shareholder of the company among the gurus is Andreas Halvorsen (Trades, Portfolio) with 1.53% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.91%, Steven Cohen (Trades, Portfolio) with 0.5%, Louis Moore Bacon (Trades, Portfolio) with 0.15%, John Burbank (Trades, Portfolio) with 0.13%, Pioneer Investments (Trades, Portfolio) with 0.1% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.06%.
The firm bought 20,642,700 shares of Suncor Energy Inc. (SU, Financial) with an impact of 0.54% on the portfolio. This is a new holding.
Suncor is an integrated energy company. It explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. During the third quarter, operating earnings was $346 million or 21 cents per common share compared to $410 million or 28 cents per common share in the prior year quarter. Flow from operations was $2.025 billion or $1.22 per common share compared to $1.882 billion or $1.30 per common share in the same quarter of prior year.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -4.97% and ROA of -2.49% are underperforming 72% of the companies in the Global Oil & Gas Integrated industry. Financial strength has a rating of 4 out of 10. The cash to debt ratio of 0.17 is below the industry median of 0.42.
First Eagle Investment (Trades, Portfolio) is another notable shareholder of the company among the gurus with 0.45% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.14%, Ray Dalio (Trades, Portfolio) with 0.06%, Steven Cohen (Trades, Portfolio) with 0.03% and Jeremy Grantham (Trades, Portfolio) with 0.02%.
Dodge & Cox increased it position in Twenty-First Century Fox Inc Class A. (FOXA, Financial) by 47.46%. The trade had an impact of 0.51% on the portfolio.
It is a diversified media and entertainment company. It operates in five business segments: Cable Network Programming, Television, Filmed Entertainment, Other Corporate and Eliminations. Third quarter income from continuing operations attributable to stockholders was $827 million, or 44 cents per share, as compared to $678 million, or 34 cents per share, reported in the prior year quarter. The company reported an increase of 7% for revenues.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 20.22% and ROA of 5.99% are outperforming 70% of the companies in the Global Media - Diversified industry. Financial strength has a rating of 5 out of 10. The cash to debt ratio of 0.24 is below the industry median of 0.98.
Another notable shareholder of the company among the gurus is Donald Yacktman (Trades, Portfolio) with 2.57% of outstanding shares, followed by the Yacktman Fund (Trades, Portfolio) with 1.28%, the Yacktman Focused Fund (Trades, Portfolio) with 0.8%, Seth Klarman (Trades, Portfolio) with 0.69%, Manning & Napier Advisors Inc. with 0.54%, Warren Buffett (Trades, Portfolio) with 0.48% and Wallace Weitz (Trades, Portfolio) with 0.21%.
The firm acquired 10,811,775 shares of Dell Technologies Inc. (DVMT, Financial) with an impact of 0.49% on the portfolio.
The company designs, develops, manufactures, markets, sells and supports many products and services through its four product and services business units: Client Solutions, Enterprise Solutions Group, Dell Software Group and Dell Services. During the third quarter, net revenue grew 28% from the third quarter of a year before and adjusted EBITDA increased 214%.
GuruFocus gives the stock a profitability and growth rating of 2 out of 10. The ROE of -46.47% and ROA of -3.39% are underperforming 88% of the companies in the Global Computer systems industry. Financial strength has a rating of 3 out of 10. The cash to debt ratio of 0.19 is below the industry median of 1.35.
Another notable shareholder of the company among the gurus is Paul Singer (Trades, Portfolio) with 0.92% of outstanding shares, followed by Seth Klarman (Trades, Portfolio) with 0.85%, PRIMECAP Management (Trades, Portfolio) with 0.5%, Jana Partners (Trades, Portfolio) with 0.39% and Daniel Loeb (Trades, Portfolio) with 0.29%.
The firm increased its position in The Priceline Group Inc. (PCLN, Financial) by 19.65%. The trade had an impact of 0.18% on the portfolio.
Priceline provides online travel and travel related reservation and search services. The company offers consumers accommodation reservations through its Booking.com, priceline.com and agoda.com brands. Gross profit grew 22% from the third quarter of a year before but net income decreased 58% versus the prior year.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 21.62% and ROA of -10.67% are outperforming 87% of the companies in the Global Leisure industry. Financial strength has a rating of 6 out of 10. The cash to debt ratio of 0.60 is below the industry median of 0.64.
Frank Sands (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.75% of outstanding shares, followed by Chase Coleman (Trades, Portfolio) with 1.87%, Dodge & Cox with 1.64%, Steve Mandel (Trades, Portfolio) with 1.16%, Lee Ainslie (Trades, Portfolio) with 0.83% and Spiros Segalas (Trades, Portfolio) with 0.72%.
Dodge & Cox increased its holding in Sanofi SA ADR. (SNY, Financial) by 7.54%. The transaction had an impact of 0.15% on the portfolio.
It is a health care company engaged in the research, development, manufacture and marketing of health care products.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 7.47% and ROA of 4.22% are outperforming 55% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 6 out of 10. The cash to debt ratio of 0.36 is below the industry median on 1.69.
Another notable shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.22% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.48%, Hotchkis & Wiley with 0.47%, Warren Buffett (Trades, Portfolio) with 0.15%, Charles Brandes (Trades, Portfolio) with 0.15% and Bill Nygren (Trades, Portfolio) with 0.12%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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