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Sally Jones
Sally Jones
Articles (580) 

Wassup with SUP? Seven Billionaires Trade

November 28, 2013 | About:

Seven gurus traded SUP in the third quarter of 2013, and according to GuruFocus Real Time Picks, Mario Gabelli just made a reduction to his stake in Superior Industries International (NYSE:SUP), the largest manufacturer of aluminum wheels for cars and trucks in North America. The company has five plants in the U.S. and Mexico, and sells wheels to the original equipment market via auto makers Ford Motor Co. (NYSE:F), General Motors Co. (NYSE:GM) and a number of others.

In the third quarter, the dropping price of aluminum made a direct impact on SUP’s bottom line. Superior Industries International reported financial results for the third quarter of 2013 with a net income of $5.2 million, compared to $15.1 in the third quarter of 2012. Earnings for the third quarter of 2013 were $0.19 per diluted share, down from $0.55 in the same quarter a year ago. The company reported consolidated net sales down 1% at $191.6 million in the third quarter of 2013, compared to $193.9 million in the same quarter of 2012, indicating the drop in aluminum’s value, hitting a four-year low. Superior’s gross profit was $15.4 million, up from last year’s same quarter at $15 million. In May 2013, the company broke ground on its new wheel plant in Chihuahua, Mexico, and anticipates the facility will be operation in early 2015, according to a company press release.

Here’s a company update and recent guru trade details.

Superior Industries International (NYSE:SUP)

Up 1% over 12 months, Superior Industries Internationalhas a market cap of $525.1 million; its shares were traded at around $19.09 with a P/E ratio of 27.30. The dividend yield is 4.30%.

Here’s the GuruFocus analysis of SUP, showing two good signs and five warnings.

Tracking historical share price, revenue and net income:


Third Quarter Guru Action: As of Sept. 30, 2013, John Rogers made a new buy of 37,000 shares at an average price of $17.96 per share, for a gain of 6.3%.

In the same quarter, Joel Greenblatt sold out his SUP, after six quarters of trading. He sold 45,970 shares at an average price of $17.96 per share, gaining 6.3%.

Greenblatt’s highest gain of 10.8% was made on a new buy of 77,857 shares bought at an average price of $17.23 per share in the second quarter of 2012. The holding’s low point was a loss of 5.7% in the first quarter of 2013 when he bought 16,436 shares at an average price of $20.25 per share.

Also in the third quarter, Third Avenue Management reduced its position by 72.74%, selling 1,173,453 shares at an average price of $17.96 per share, gaining 6.3%.

The firm has averaged a gain of 7% on 331,213 shares bought at an average price of $17.85 per share. The firm also gained 14% on 4,147,640 shares sold at an average price of $16.77 per share.

Third Avenue’s holding history:


Here’s more third quarter trading of SUP. Check out the insider selling.

Real Time Trade

Guru Action: As of Nov. 25, 2013, Mario Gabelli reduced his position by 0.81%, selling shares in the average price range of $18.73. This trade follows his add of 6.85% made as of Nov. 7, 2013, buying shares in the average price range of $18.77, making a portfolio impact of 0.02%.

In the third quarter of 2013, Gabelli bought 429,702 shares at an average price of $17.96 per share, for a gain of 6.3%.

Over a five-year history, Gabelli has averaged a gain of 9% on 2,378,298 shares bought at an average price of $17.46 per share. He gained 24% selling 521,400 shares at an average price of $15.34 per share.

The largest guru stakeholder of SUP, Gabelli’s current shares are 2,361,198 or 8.58% of shares outstanding.

Gabelli’s holding history:


Check out more recent sells made by Mario Gabelli.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.7/5 (3 votes)


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GuruFocus has detected 2 Warning Signs with Superior Industries International Inc $SUP.
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