Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. Prior to this, he served as a senior portfolio manager at Selected Financial Services Inc.
Yacktman is the co-manager for AMG Yacktman Focused Fund (Trades, Portfolio) and the award winning AMG Yacktman Fund (Trades, Portfolio). He was awarded the 1994 Portfolio Manager of the Year award by Mutual Fund Letter.
In the first quarter, Yacktman sold 1,100,000 shares of Oracle (ORCL, Financial) from his Focused Fund. He now owns 6,100,000 shares of Oracle.
Oracle was founded in 1977 by Larry Ellison, Bob Miner and Ed Oates under the name Software Development Laboratories. The company's name was changed to Oracle Systems Corporation in 1982. The company develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products. Oracle currently serves over 420,000 customers and deployments in more than 145 countries worldwide.
Oracle has a market cap of $170.23 billion, a P/E ratio of 20.22, an enterprise value of $160.03 billion, a P/B ratio of 3.70 and a dividend yield of 1.45%.
According to GuruFocus, Oracle has a financial strength rating of 7/10 and a profitability and growth rating of 8/10. The company's operating margin is 33.96%, ranking the company above 96% of the companies in the global software infrastructure industry.
During the quarter, Steven Romick added 897,710 shares of the company.
On Feb. 1, Romick commented on Oracle Corp.
"We had some puts and takes that drove 2015’s performance. Microsoft (MSFT, Financial) and Alphabet (GOOG, Financial) (formerly Google) performed quite well but Oracle lagged. Oracle continued to transition its business to the cloud last year but it has been proceeding more slowly than investors or the company expected. Concern about the transition and weak software license sales led to the stock’s decline. Given the undemanding valuation and high level of recurring revenue, we used a drop in the share price to increase our position."
It is possible that Yacktman reduced his holding in Oracle because the company is facing intense competition within the industry. If the company is unable to successfully create new innovative products and services for its customers, it could potentially lose hardware support or cloud subscription contracts, which is vital for the growth of Oracle's business. The companies that Oracle is competing against include Microsoft, IBM (IBM, Financial), HP Inc. (HPQ, Financial) and SAP AG.
Below is a Peter Lynch Chart for Oracle Corp.
Cheers to your investment success.
Disclosure: Author does not own any shares of this stock.
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