Pioneer Investments (Trades, Portfolio) initiated four major positions in its $61.8 billion portfolio of holdings in the early months of the year, according to regulatory filings.
All told, the Massachusetts-based investment management firm held 1,467 stocks in a portfolio that devotes more than half its space to stocks in the technology, financial services and consumer cyclical sectors. In the first quarter, Pioneer initiated a total of 93 positions after a quarter-over-quarter turnover of 9%.
Among the manager’s four top picks, each has triggered an estimated return of at least 10%, based on quarterly records and GuruFocus estimates.
Chemical and biological materials supplier Bio-Rad Laboratories Inc. (BIO, Financial) was its top buy as 102,000 shares sit in a portfolio space of 0.04%. The average share price was just over $254 a share. It has jumped an estimated 15%.
Callaway Golf Co. (ELY, Financial) represented 0.03% of the portfolio space with a purchase of more than 1 million shares for an average price of $15.19 a share. It has climbed an estimated 28%. The company makes and sells golf clubs and related accessories.
Alarm.com Holdings Inc. (ALRM, Financial) sits in about 0.02% of the portfolio. A total of more than 264,000 shares were purchased at an average price of $37.71 a share. The investment in the cloud-based security provider has gained approximately 16% since the transaction was made. The company allows home and business owners to control its security systems, lights and thermostats remotely.
Sothebys (BID, Financial), the New York-based auctioneer, fills about 0.02% portfolio space, representing more than 276,000 shares. The shares were bought for an average price of just under $51 a share. The stock has returned an estimated 10%.
Pioneer Investments was acquired last summer by the Amundi group, a European asset manager. The combined company now manages over 1.4 trillion euros ($1.16 trillion) worth of assets across its investment hubs, according to its website. GuruFocus shows the value of Pioneer’s equity holdings increased to more than $64 billion in December 2017, compared to $31 billion in September of the same year.
Pioneer operates a range of investment vehicles. According to its website, its focus is on taking active positions in quality companies. The firm believes quality companies with sustainable competitive advantages can outperform their peers.
The asset manager combines qualitative screening with bottom-up fundamental analysis and top-down macroeconomic themes. The fund’s team has average industry experience of more than 20 years, the website states.
Other buys in the portfolio included equities in a variety of companies. Each of the following stocks make up 0.01% of the portfolio: American States Water Co. (AWR, Financial), Bluebird Bio Inc. (BLUE, Financial), BrightSphere Investment Group (BSIG), Fanhua Inc. (FANH), FibroGen Inc. (FGEN), Granite Construction Inc. (GVA, Financial), Momo Inc. (MOMO, Financial), Neurocrine Biosciences Inc. (NBIX, Financial), Nexstar Media Group Inc. (NXST, Financial), Novartis AG (NVS), Pure Storage Inc. (PSTG), Qualys Inc. (QLYS), Sarepta Therapeutics Inc. (SRPT), VICI Properties Inc. (VICI) and Vipshop Holdings Ltd. (VIPS, Financial).
Bio-Rad Laboratories Inc.
Pioneer had just exited its position in the stock of the California-based company in the final months of the year before staking out a new claim in the first quarter. Shares on Wednesday afternoon stood at just over $291 a share, up 1.78%. Its 52-week range is $208.95 to $297.59 a share. The stock is trading at 11.39 times earnings and 47.85 times forward earnings. It has a Piotroski F-Score of 5, which indicates a very healthy situation.
The company manufactures and supplies life science research products to health care and markets that depend on systems to separate complex chemical and biological materials. A majority of the company’s revenue is generated outside of the U.S.
Analysts are predicting earnings per share of $9 on revenues of $2.5 billion in 2020. But the company has seen declines in revenue per share in recent years. Revenue was reported at $2.2 billion, compared to $2.1 billion in the prior year. Revenue has not exceeded $2 billion since 2011. In net income, the company reported $122 million in December 2017, compared to $26 million in the prior year. It has a long-term debt of $435 million and a free cash flow loss of $11 million.
The company has a market cap of $8.68 billion. GuruFocus ranks its financial strength 8 out of 10 and its profitability and growth 5 of 10.
Among the gurus invested in Bio-Rad are Mario Gabelli (Trades, Portfolio), Ken Fisher (Trades, Portfolio), John Rogers (Trades, Portfolio) and NWQ Managers (Trades, Portfolio).
Callaway Golf Co.
The California-based company’s stock is near its 52-week high of $19.29 a share. The low is $12.04 a share.
On Wednesday afternoon, it dropped 0.1% to $19.19 a share. Its stock is trading at 23.99 times its earnings and 22.32 times its forward earnings. It has a price-book ratio of 2.66, lower than the majority of its peers in the Global Leisure Industry, and a price-sales ratio of 1.62, which is higher than the majority of its same-sector peers. It yields a dividend of 0.21%. The company has a Piotroski F-Score of 4, which indicates a score that is typical for a stable company.
Analysts predict the revenues to hit 90 cents per share on revenue of $1.17 billion in 2019. Revenues have been falling over several years. In December 2017, revenue stood at $1 billion, compared to $871 million in the prior year. In net income, the company reported $41 million, down from $190 million the prior year. Long-term debt was $9 million and it had no debt the prior year. It reported at year’s end $91 million in free cash flow.
It has a market cap of $1.81 billion. GuruFocus ranks it 7 out of 10 in financial strength and 3 of 10 in profitability and growth.
Gurus who own the stock include Jeremy Grantham (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Mariko Gordon (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio).
Alarm.com Holdings Inc.
The Virginia-based interactive security provider for homes and businesses was trading at 61.44 times earnings and 38 times forward earnings on Wednesday afternoon. The stock was priced at $44.23 a share, up 1.19%. Its 52-week range is $31.68 to $49.49 a share. The company’s stock price has soared by 163% since it became a publicly-traded entity in 2015.
Analysts expect earnings of $1.39 per share on revenues of $426 million in 2019. Revenue now stands at about $357 million. The company has a high Piotroski F-Score of 7, which means it has very healthy business operating conditions.
In March, the company reported revenue of $92.8 million, compared to $88.8 million in December 2017. It reported net income of $10 million in March, compared to net income of 17.75 million in September 2017. It reported $70 million in long-term debt in March, and $15.8 billion in free cash flow as of December 2017.
The company has a market cap of $2 billion. GuruFocus gives it a 7 out of 10 rating on financial strength and a 6 of 10 rating on profitability and growth.
Gurus who also own shares are Chuck Akre (Trades, Portfolio) and Greenblatt.
Sothebys Class A
Shares of one of the world’s largest brokers of art, real estate and collectibles were up on Wednesday afternoon just before market close. Sothebys was valued at just under $56 a share, up 1.78%. The 52-week range for Sothebys was $42.78 to $57.95 a share. It is trading at 24.54 times earnings and has a price-book ratio of 4.95 times and a price-sales ratio of 2.94 times. Both are lower than 80% of its same-sector peers. Its operating margin of 19.34% is more than 90% above its same-sector peers.
In earnings, the company has averaged an annual growth rate of 2.2% over the last decade and 32% over the last 12 months. It reported revenue of $316 million in December 2017, compared to $171 million in the prior year. It reported net income of $76.7 million, compared to a loss of $23.5 million in the prior-year quarter.
In long-term debt, the company reported $849.5 million in December 2017, compared to $991 million in 2016. It had $434 million in free cash flow at the end of the year.
The company has a very strong Pitrioski-F Score of 8, indicating robust business-related operations.
GuruFocus ranks the company a 5 out of 10 in financial strength and an 8 of 10 in profitability and growth.
Gurus who hold the stock include Rogers, Barrow, Hanley, Mewhinney & Strauss, Royce, Lee Ainslie (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Jim Simons (Trades, Portfolio).
