Joel Greenblatt (Trades, Portfolio) is known for the invention of Magic Formula Investing, and founder of the New York Securities Auction Corporation (NYSAC). Greenblatt is founder and managing partner of Gotham Asset Management LLC. During the fourth quarter the guru sold shares in the following stocks:
The investor reduced his shares in Hewlett Packard Enterprise Co. (HPE) by 68.53% with an impact of -0.84% on the portfolio.
The company provides servers, storage, networking and technology services. Its business segments are Enterprise Group, Software, Enterprise Services, Financial Services and Corporate Investments. During the first quarter the company reported GAAP diluted net earnings per share, EPS of 16 cents, above the previously provided outlook of 3 cents to 7 cents per share and non-GAAP diluted net earnings per share of 45 cents was near the high end of the previously provided outlook of 42 cents to 46 cents per share.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The return on equity (ROE) of 9.99% and return on assets (ROA) of 4.05% are outperforming 64% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10. The cash to debt of 0.62 is below the industry median of 2.10.
The largest shareholder among the gurus is Dodge & Cox with 12.55% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 3.36%, HOTCHKIS & WILEY with 2.55%, Richard Pzena (Trades, Portfolio) with 1.03%, John Paulson (Trades, Portfolio) with 0.18% and Yacktman Fund (Trades, Portfolio) with 0.15%.
The guru closed his stake in Sysco Corp. (SYY) with an impact of -0.7% on the portfolio.
The company through its subsidiaries and divisions is engaged in the distribution of food and related products to the foodservice or food-away-from-home industry. Second-quarter sales grew 10.7% and gross profit increased 19.2% year over year. The company reported an increase of 13.8% for operating income.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 30.55% and ROA of 6.55% are outperforming 77% of the companies in the Global Food Distribution industry. Financial strength has a rating of 6 out of 10. The cash to debt of 0.10 is below the industry median of 0.48.
Donald Yacktman (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.09% of outstanding shares followed by Yacktman Fund with 1.44%, Yacktman Focused Fund (Trades, Portfolio) with 0.81%, Jim Simons (Trades, Portfolio) with 0.78% and Manning & Napier Advisors Inc. with 0.01%.
The guru exited his position in Automatic Data Processing Inc. (ADP) with an impact of -0.65% on the portfolio.
The company is the provider of technology-based outsourcing solutions to employers and vehicle retailers and manufacturers.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 39.85% and ROA of 4.05% are outperforming 55% of the companies in the Global Business Services industry. Financial strength has a rating of 6 out of 10. The cash to debt of 1.35 is below the industry median of 1.39.
The largest shareholder among the gurus is Bill Nygren (Trades, Portfolio) with 0.83% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.33%, Tom Gayner (Trades, Portfolio) with 0.12%, Jeremy Grantham (Trades, Portfolio) with 0.07%, MS Global Franchise Fund (Trades, Portfolio) with 0.06%, David Carlson (Trades, Portfolio) with 0.04% and Manning & Napier Advisors with 0.02%.
The guru reduced his holding in Walt Disney Co. (DIS) by 69.86% with an impact of -0.6% on the portfolio.
The company together with its subsidiaries is a diversified entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. During the first quarter, driven by a 13 cents per share gain in the prior year related to the company’s investment in A+E Television Networks, diluted earnings per share (EPS) decreased 10% to $1.55 from $1.73 in the prior-year quarter and earnings per share (EPS) decreased 5%.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 20.55% and ROA of 9.88% are outperforming 85% of the companies in the Global Media – Diversified industry. Financial strength has a rating of 6 out of 10, with cash to debt of 0.18 is below the industry median of 1.27.
Ken Fisher (Trades, Portfolio) with 0.55% of outstanding shares is the largest shareholder among the gurus followed by PRIMECAP Management with 0.36%, Spiros Segalas (Trades, Portfolio) with 0.3%, Simons with 0.23%, Pioneer Investments (Trades, Portfolio) with 0.2%, Andreas Halvorsen (Trades, Portfolio) with 0.15%, Diamond Hill Capital (Trades, Portfolio) with 0.15% and Gayner with 0.1%.
The guru almost closed its stake in Marriott International Inc. Class AĂ‚ (MAR) with a decrease of 96.45% and with an impact of -0.59% on the portfolio.
The company is an operator, franchisor and licensor of hotels and timeshare properties under different brand names. It also operates and develops residential properties and provides services to home/condominium owner association. During the fourth quarter diluted earnings per shares, EPS decreased 19% over prior year quarter and adjusted diluted earnings per share, EPS grew 20%.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 814.20% and ROA of 5.74% are outperforming 71% of the companies in the Global Lodging industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.10 that is below the industry median of 0.75.
The largest shareholder among the gurus is Segalas with 1.64% of outstanding shares followed by Gayner with 0.39%, PRIMECAP Management with 0.1%, Simons with 0.08%, Ron Baron (Trades, Portfolio) with 0.06%, Fisher with 0.02%, Caxton Associates (Trades, Portfolio) with 0.01% and Greenblatt with 0.01%.
The guru reduced his shares in Cardinal Health Inc. (CAH) by 87.47% with an impact of -0.52% on the portfolio.
It is a health care services company. It provides pharmaceutical and medical products and services that help pharmacies, hospitals and other health care providers focus on patient care. It also provides medical products to patients in the home. Second-quarter revenue grew 5% and GAAP operating earnings decreased 4%. The company reported a 4% decrease for non-GAAP operating earnings.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 20.59% and ROA of 3.95% are outperforming 54% of the companies in the Global Medical Distribution industry. Financial strength has a rating of 7 out of 10. The cash to debt of 0.34 is below the industry median of 0.65.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus, with 6.77% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 2.02%, Seth Klarman (Trades, Portfolio) with 0.33%, Pioneer Investments with 0.1%, Ray Dalio (Trades, Portfolio) with 0.4% and First Pacific Advisors (Trades, Portfolio) with 0.03%.
The investor closed his holding in Intuit Inc. (INTU) with an impact of -0.52% on the portfolio.
The company creates business and financial management solutions that help simplify the business of life for small businesses, consumers and accounting professionals. It operates in three segments: Small Business, Consumer Tax and Professional Tax.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 101.55% and ROA of 22.18% are outperforming 95% of the companies in the Global Software – Application industry. Financial strength has a rating of 6 out of 10. The cash to debt of 0.55 is below the industry median of 7.61.
The largest shareholder among the gurus is PRIMECAP Management with 2.58% of outstanding shares followed by Grantham with 0.25%, Carlson with 0.21%, Simons with 0.15%, RS Investment Management (Trades, Portfolio) with 0.07% and Pioneer Investments with 0.07%.
The guru reduced his position in Oracle Corp. (ORCL) by 60.59% with an impact of -0.5% on the portfolio.
The company develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products and related services.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 18.77% and ROA of 7.73% are outperforming 72% of the companies in the Global Software – Infrastructure industry. Financial strength has a rating of 6 out of 10. The cash to debt of 1.07 is below the industry median of 7.61.
First Eagle Investment is the largest shareholder among the gurus with 0.97% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.95%, First Pacific Advisors with 0.53%, Steven Romick (Trades, Portfolio) with 0.48%, Yacktman with 0.48% and HOTCHKIS & WILEY with 0.44%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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