Most of PRIMECAP Management (Trades, Portfolio)’s fourth-quarter activity involved adding to or reducing existing stakes in its portfolio. The guru did buy a couple of new stakes and sold three others, but they had little impact on the portfolio.
PRIMECAP raised its stake in Alibaba (BABA, Financial), a Chinese ecommerce company, by more than 36%. PRIMECAP acquired 3,612,400 shares for an average price of $78.9 per share in a transaction that had a 0.3% impact on PRIMECAP’s portfolio.
The stake, now 13,541,805 shares, is 0.54% of Alibaba’s outstanding shares and 1.13% of PRIMECAP’s total assets. Frank Sands (Trades, Portfolio) is Alibaba’s leading shareholder among the gurus with a stake of 23,074,907 shares. The stake is 0.92% of Alibaba’s outstanding shares and 4.83% of Sands’ total assets.
Alibaba has a P/E of 17.4, a forward P/E of 21.2, a P/B of 5.7 and a P/S of 13.1. GuruFocus gives Alibaba a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
Alibaba sold for $74.25 per share Thursday.
PRIMECAP hiked its stake in JPMorgan Chase & Co. (JPM, Financial), a New York-based banking and financial services company, by nearly 32%. PRIMECAP purchased 3,430,930 shares for an average price of $65.22 per share. The deal had a 0.23% impact on PRIMECAP’s portfolio.
The stake, now 14,300,031 shares, is 0.39% of JPMorgan Chase’s outstanding shares and 0.97% of PRIMECAP’s total assets. Barrow, Hanley, Mewhinney & Strauss is JPMorgan Chase’s leading shareholder among the gurus with a stake of 31,244,912 shares. The stake is 0.85% of JPMorgan Chase’s outstanding shares and 3.07% of the guru’s total assets.
JPMorgan Chase sold for $58.75 per share Thursday.
PRIMECAP increased its stake in KLA-Tencor Corp. (KLAC, Financial), a semiconductor equipment and materials company based in Milptas, California, by almost 30%. PRIMECAP bought 2,800,897 shares for an average price of $64.32 per share. The transaction had a 0.2% impact on PRIMECAP’s portfolio.
The stake, now 12,235,143 shares, is 7.86% of KLA-Tencor’s outstanding shares and 0.87% of PRIMECAP’s total assets. PRIMECAP is KLA-Tencor’s leading shareholder among the gurus.
KLA-Tencor has a P/E of 21.2, a forward P/E of 18.1, a P/B of 29.9 and a P/S of 3.9. GuruFocus gives KLA-Tencor a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
KLA-Tencor sold for $70.94 per share Thursday.
PRIMECAP boosted its stake in HP Inc. (HPQ, Financial), the Palo Alto, California-based successor to Hewlett-Packard, by more than 31%. PRIMECAP purchased 13,582,480 shares for an average price of $12.8 per share. The deal had a 0.16% impact on PRIMECAP’s portfolio.
The stake, now 57,085,165 shares, is 3.29% of HP’s outstanding shares and 0.69% of PRIMECAP’s total assets. HP’s leading shareholder among the gurus is Dodge & Cox with a stake of 199,738,878 shares. The stake is 11.5% of HP’s outstanding shares and 2.32% of Dodge & Cox’s total assets.
HP has a P/E of 5.7, a forward P/E of 7 and a P/S of 0.2. GuruFocus gives HP a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
HP sold for $11.72 per share Thursday.
PRIMECAP increased its position in American Airlines Group Inc. (AAL, Financial), a Fort Worth, Texas-based airline holding company, by more than 19%. PRIMECAP acquired 3,225,282 shares for an average price of $43.37 per share. The transaction had a 0.14% impact on PRIMECAP’s portfolio.
The stake, now 19,855,777 shares, is 3.29% of the company’s outstanding shares and 0.86% of PRIMECAP's total assets. PRIMECAP is American Airlines Group’s leading shareholder among the gurus.
American Airlines Group has a P/E of 3.7, a forward P/E of 6.2, a P/B of 4.7 and a P/S of 0.7. GuruFocus gives American Airlines Group a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
American Airlines Group sold for $42.1 per share Thursday.
PRIMECAP raised its stake in Hewlett Packard Enterprise Co. (HPE, Financial), a Palo Alto, California-based information technology company founded in November 2015 as part of the split of Hewlett-Packard company, by nearly 17%. PRIMECAP bought 7,231,980 shares for an average price of $14.76 per share. The deal had a 0.11% impact on PRIMECAP’s portfolio.
The stake, now 50,734,665 shares, is 2.96% of Hewlett Packard Enterprise’s outstanding shares and 0.79% of PRIMECAP’s total assets. Dodge & Cox is Hewlett Packard Enterprise’s leading shareholder among the gurus with a stake of 217,529,528 shares. The stake is 12.67% of Hewlett Packard Enterprise’s outstanding shares and 3.24% of Dodge & Cox’s total assets.
Hewlett Packard Enterprise has a P/E of 11.1, a forward P/E of 8.5, a P/B of 0.9 and a P/S of 0.6. GuruFocus gives Hewlett Packard Enterprise a Financial Strength rating of 5/10 and a Profitability and Growth rating of 3/10.
Hewlett Packard Enterprise sold for $17.16 per share Thursday.
PRIMECAP hiked its stake in Micron Technology Inc. (MU, Financial), a semiconductor company based in Boise, Idaho, by more than 16%, with the purchase of 7,142,628 shares. PRIMECAP paid an average price of $15.97 per share in a deal that had a 0.1% impact on its portfolio.
The stake at the end of the fourth quarter – 51,181,144 shares – was 4.93% of Micron Technology’s outstanding shares and 0.74% of PRIMECAP’s total assets. The stake rose nearly 9% with another acquisition in the first quarter. PRIMECAP is Micron Technology’s leading shareholder among the gurus.
Micron Technology has a P/E of 6, a forward P/E of 6.6, a P/B of 0.9 and a P/S of 0.8. GuruFocus gives Micron Technology a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
Micron Technology sold for $10.87 per share Thursday.
PRIMECAP reduced its stake in Chubb Ltd. (CB, Financial), a property and casualty insurer with offices in Zurich, New York and London, by more than 82% with the sale of 1,957,179 shares for an average price of $113.42 per share. The transaction had a -0.26% impact on PRIMECAP’s portfolio.
The remaining stake of 415,500 shares is 0.09% of Chubb’s outstanding shares and 0.06% of PRIMECAP’s total assets. Pioneer Investments (Trades, Portfolio) is Chubb’s leading shareholder among the gurus with a stake of 1,771,461 shares. The stake is 0.38% of Chubb’s outstanding shares and 0.9% of Pioneer Investments (Trades, Portfolio)’ total assets.
Chubb sold for $120.99 per share Thursday.
PRIMECAP trimmed its stake in Adobe Systems Inc. (ADBE, Financial), a computer software company based in San Jose, California, by nearly 5%. PRIMECAP sold 1,697,875 shares for an average price of $90.03 per share. The deal had a -0.16% impact on PRIMECAP’s portfolio.
The remaining stake of 33,244,110 shares is 6.67% of Adobe’s outstanding shares and 3.19% of PRIMECAP’s total assets. PRIMECAP is Adobe’s leading shareholder among the gurus.
Adobe has a P/E of 72.6, a forward P/E of 23.7, a P/B of 6.2 and a P/S of 9.3. GuruFocus gives Adobe a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
Adobe sold for $89.96 per share Thursday.
PRIMECAP cut its stake in Visa Inc. (V, Financial), a Foster City, California-based financial services company, by more than 12%, selling 1,201,225 shares for an average price of $77.62 per share. The transaction had a -0.09% impact on PRIMECAP’s portfolio.
The remaining stake of 8,439,598 shares is 0.39% of Visa’s outstanding shares and 0.67% of PRIMECAP’s total assets. Visa’s leading shareholder among the gurus is Frank Sands (Trades, Portfolio) with a stake of 44,284,945 shares. The stake is 2.03% of Visa’s outstanding shares and 8.85% of Sands’ total assets.
Visa has a P/E of 26.7, a forward P/E of 22.4, a P/B of 5.4 and a P/S of 12.6. GuruFocus gives Visa a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10.
Visa sold for $73.14 per share Thursday.
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