Chuck Royce Adds to Stake in Tejon Ranch

Guru's stake is nearly 9% of company's outstanding shares

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Jan 27, 2016
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Chuck Royce (Trades, Portfolio), president, co-chief investment officer and portfolio manager of Royce & Associates LLC, raised his stake in Tejon Ranch Co. (TRC, Financial) by 6% in the fourth quarter.

Royce purchased 103,907 shares for an average price of $19.15 per share. With the acquisition, Royce’s stake in Tejon is 1,829,209 shares, which is 8.85% of Tejon’s outstanding shares and 0.19% of Royce’s total assets.

Tejon Ranch is a Lebec, California-based private landowner. It was incorporated in 1936 to organize ownership of a tract containing four Mexican land grants. The company now has authority over more than 270,000 acres of land in the southern San Joaquin Valley, Tehachapi Mountains and Antelope Valley.

Tejon Ranch operates in four segments – Real Estate, Livestock, Farming and Resource Management.

Tejon has a P/E of 122.2, a forward P/E of 45.9, a P/B of 1.4 and a P/S of 7.7. GuruFocus gives Tejon a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.

Third Avenue Management (Trades, Portfolio) is Tejon’s leading shareholder among the gurus with a stake of 2,292,582 shares. The stake is 11.09% of Tejon’s outstanding shares and 1.36% of Third Avenue Management (Trades, Portfolio)’s total assets.

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Tejon Ranch sold for $18.81 per share Wednesday.

The stock price tumbled nearly 9% Monday to $18.09 per share, a loss of $1.73 per share. On Jan. 15, the stock price dropped to $17.58 per share, a new 52-week low. The stock rebounded to $18.58 by the closing bell.

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