John Rogers (Trades, Portfolio), the founder of Ariel Investment, LLC, recently executed a significant transaction in Sphere Entertainment Co (SPHR, Financial). This article will delve into the details of this transaction, provide an overview of Rogers' investment philosophy, and analyze the performance of Sphere Entertainment Co.
Transaction Details
On July 31, 2023, John Rogers (Trades, Portfolio) reduced his stake in Sphere Entertainment Co by 23.82%, selling 1,586,612 shares at a price of $42.45 per share. This transaction had a -0.65% impact on his portfolio, leaving him with a total of 5,073,532 shares in the company. Despite the reduction, Sphere Entertainment Co still constitutes 2.08% of Rogers' portfolio, and he holds 18.30% of the company's shares.
Guru Profile: John Rogers (Trades, Portfolio)
John Rogers (Trades, Portfolio) founded Ariel Investment, LLC in 1983 and has since been managing the firm's small and mid-cap institutional portfolios. He is also a long-term Forbes columnist, writing a column called "Patient Investor." Rogers' investment philosophy is centered on patience, independent thinking, and a long-term outlook. He focuses on small and medium-sized companies whose share prices are undervalued and have high barriers to entry, sustainable competitive advantages, and predictable fundamentals. His top holdings include Baidu Inc(BIDU, Financial), Mattel Inc(MAT, Financial), Kennametal Inc(KMT, Financial), Philip Morris International Inc(PM, Financial), and Resideo Technologies Inc(REZI, Financial). His portfolio, valued at $10.41 billion, is primarily invested in the Consumer Cyclical and Financial Services sectors.
Traded Stock Information: Sphere Entertainment Co
Sphere Entertainment Co, a live entertainment and media company based in the USA, creates, writes, casts, produces, and tours shows and events. The company's portfolio includes Sphere, a next-generation entertainment medium. The group has three reportable segments: Entertainment, MSG Networks, and Tao Group Hospitality. As of August 11, 2023, the company's market capitalization stands at $1.35 billion. Despite a year-to-date price change ratio of 93.24%, the company's stock is significantly overvalued according to the GF-Score, with a price to GF Value of 2.99. The company's financial strength and profitability rank are both 3/10, indicating room for improvement.
Stock Performance Metrics
Sphere Entertainment Co's performance metrics reveal a mixed picture. The company's ROE and ROA stand at -6.70 and -2.36 respectively, indicating a negative return on equity and assets. The company's gross margin growth is 9.30%, but its operating margin growth is 0.00%. Over the past three years, the company's revenue has grown by 4.80%, but its earnings have declined by 81.80%. The company's momentum rank is 10/10, suggesting strong momentum in its stock price.
Largest Guru Holding the Traded Stock
Ariel Investment, LLC, founded by John Rogers (Trades, Portfolio), is the largest guru holding Sphere Entertainment Co's stock.
Other Gurus Holding the Traded Stock
Other notable gurus holding Sphere Entertainment Co's stock include Mario Gabelli (Trades, Portfolio) and Third Avenue Management (Trades, Portfolio).
Conclusion
In conclusion, John Rogers (Trades, Portfolio)' recent transaction in Sphere Entertainment Co is a significant move that reduces his exposure to the company but still leaves him as a major shareholder. Despite the company's mixed performance metrics and overvaluation according to the GF-Score, its strong momentum rank suggests potential for future price appreciation. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.
