Many of the biggest deals Steve Mandel (Trades, Portfolio), founder of Lone Pine Capital, made in the first quarter were in pharmaceutical companies, but his largest transaction was in the oil and gas industry.
Mandel sold his 28,940,290-share stake in Williams Companies Inc. (WMB, Financial), an oil and gas company based in Tulsa, Oklahoma, for an average price of $17.25 per share. The divestiture had a -3.18% impact on Mandel’s portfolio.
John Griffin (Trades, Portfolio) is now Williams Companies’ leading shareholder among the gurus with a stake of 5,695,000 shares. The stake is 0.76% of Williams Companies’ outstanding shares and 1.11% of Griffin’s total assets.
Williams Companies has a forward P/E of 21.7, a P/B of 2.9 and a P/S of 2.2. GuruFocus gives Williams Companies a Financial Strength rating of 3/10 and a Profitability and Growth rating of 6/10 with ROE of -9.98% that is lower than 83% of the companies in the Global Oil & Gas Midstream industry and ROA of -1.41% that is lower than 76% of the companies in that industry.
Williams Companies sold for $21.31 per share Friday. The DCF Calculator gives Williams Companies a fair value of $-10.06.
Mandel exited his position in Valeant Pharmaceuticals International Inc. (VRX, Financial), a Canadian pharmaceutical company, with the sale of his 5,829,079-share stake for an average price of $74.84 per share. The deal had a -2.53% impact on Mandel’s portfolio.
Second-quarter transactions have shifted the order of ownership in the company, but at the end of the first quarter Ruane Cunniff (Trades, Portfolio) was Valeant’s leading shareholder among the gurus with a stake of 30,308,449 shares. The stake was 8.84% of Valeant’s outstanding shares and 6.19% of Ruane Cunniff’s total assets.
Valeant has a forward P/E of 3.2, a P/B of 1.3 and a P/S of 0.7. GuruFocus gives Valeant a Financial Strength rating of 3/10 and a Profitability and Growth rating of 7/10 with ROE of -12.35% that is lower than 78% of the companies in the Global Drug Manufacturers – Specialty & Generic industry and ROA of -1.63% that is lower than 71% of the companies in that industry.
Valeant sold for $20.27 per share Friday. The DCF Calculator gives Valeant a fair value of $-22.79.
The guru sold his 6,787,816-share stake in Walgreens Boots Alliance (WBA, Financial), a pharmaceutical and retail business based in Deerfield, Illinois, for an average price of $79.9 per share. The transaction had a -2.47% impact on Mandel’s portfolio.
Jana Partners (Trades, Portfolio) is Walgreens’ leading shareholder among the gurus with a stake of 10,579,100 shares. The stake is 0.98% of Walgreens’ outstanding shares and 16.92% of Jana Partners (Trades, Portfolio)’ total assets.
Walgreens has a P/E of 27.2, a forward P/E of 16.8, a P/B of 3 and a P/S of 0.7. GuruFocus gives Walgreens a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 10.97% that is higher than 61% of the companies in the Global Pharmaceutical Retailers industry and ROA of 4.87% that is higher than 64% of the companies in that industry.
Walgreens sold for $81.78 per share Friday. The DCF Calculator gives Walgreens a fair value of $34.87.
Mandel acquired a 1,789,239-share stake in Allergan PLC (AGN, Financial), a pharmaceutical company with offices in Dublin and New Jersey, for an average price of $286.72 per share. The transaction had a 2.39% impact on Mandel’s portfolio.
The stake is 0.45% of Allergan’s outstanding shares and 2.39% of Mandel’s total assets. Allergan’s leading shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with a stake of 11,187,547 shares. The stake is 2.83% of Allergan’s outstanding shares and 6.62% of Vanguard’s total assets.
Allergan has a P/E of 20.1, a forward P/E of 16.2, a P/B of 1.3 and a P/S of 5. GuruFocus gives Allergan a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 5.87% that is lower than 54% of the companies in the Global Drug Manufacturers – Specialty & Generic industry and ROA of 3.38% that is lower than 52% of the companies in that industry.
Allergan sold for $225.54 per share Friday. The DCF Calculator gives Allergan a fair value of $-60.57.
Mandel purchased a 10,591,296-share stake in Baxalta Inc. (BXLT), a biotechnology company, for an average price of $39.55 per share. The deal had a 2.13% impact on Mandel’s portfolio.
The stake is 1.55% of Baxalta’s outstanding shares and 2.13% of Mandel’s total assets. Eric Mindich (Trades, Portfolio) is Baxalta’s leading shareholder among the gurus with a stake of 11,928,050 shares. The stake is 1.75% of Baxalta’s outstanding shares and 5.89% of Mindich’s total assets.
Baxalta has a P/E of 38, a forward P/E of 17.4, a P/B of 7.4 and a P/S of 5. GuruFocus gives Baxalta a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with ROE of 18.66% that is higher than 93% of the companies in the Global Biotechnology industry and ROA of 7.04% that is higher than 87% of the companies in that industry.
Baxalta sold for $45.95 per share Friday. The DCF Calculator gives Baxalta a fair value of $12.73.
Mandel invested in a 10,430,118-share stake in PayPal Holdings Inc. (PYPL, Financial), a San Jose, California-based operator of a worldwide online payments system, for an average price of $36.05 per share. The deal had a 2% impact on Mandel’s portfolio.
The stake is 0.86% of PayPal’s outstanding shares and 2% of Mandel’s total assets. PayPal’s leading shareholder among the gurus is Carl Icahn (Trades, Portfolio) with a stake of 37,828,419 shares. The stake is 3.12% of PayPal’s outstanding shares and 6.8% of Icahn’s total assets.
PayPal has a P/E of 42.5, a forward P/E of 24.5, a P/B of 3.2 and a P/S of 4.4. GuruFocus gives PayPal a Financial Strength rating of 7/10 and a Profitability and Growth rating of 4/10 with ROE of 10.80% that is higher than 63% of the companies in the Global Credit Services industry and ROA of 4.93% that is higher than 71% of the companies in that industry.
PayPal sold for $35.08 per share Friday. The DCF Calculator gives PayPal a fair value of $9.1.
The guru sold his 11,266,018-share stake in Activision Blizzard Inc. (ATVI, Financial), a Santa Monica, California-based interactive gaming and entertainment company, for an average price of $32.84 per share. The divestiture had a -1.86% impact on Mandel’s portfolio.
PRIMECAP Management (Trades, Portfolio) is Activision Blizzard’s leading shareholder among the gurus with a stake of 10,334,800 shares. The stake is 1.4% of the company’s outstanding shares and 0.36% of PRIMECAP’s total assets.
Activision Blizzard has a P/E of 33, a forward P/E of 21.1, a P/B of 3.3 and a P/S of 5.7. GuruFocus gives Activision Blizzard a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with ROE of 10.50% that is higher than 65% of the companies in the Global Electronic Gaming & Multimedia industry and ROA of 5.59% that is higher than 64% of the companies in that industry.
Activision Blizzard sold for $36.98 per share Friday. The DCF Calculator gives Activision Blizzard a fair value of $31.88.
Mandel trimmed his stake in Visa Inc. (V, Financial), a Foster City, California-based financial services company, by more than 41%, selling 5,283,907 shares for an average price of $72.68 per share. The transaction had a -1.75% impact on Mandel’s portfolio.
The remaining stake of 7,485,352 shares is 0.35% of Visa’s outstanding shares and 2.85% of Mandel’s total assets. Visa’s leading shareholder among the gurus is Frank Sands (Trades, Portfolio) with a stake of 40,107,184 shares. The stake is 1.85% of Visa’s outstanding shares and 9.06% of Sands’ total assets.
Visa has a P/E of 26.6, a forward P/E of 24.2, a P/B of 5.6 and a P/S of 12.8. GuruFocus gives Visa a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with ROE of 23.59% that is higher than 89% of the companies in the Global Credit Services industry and ROA of 15.05% that is higher than 97% of the companies in that industry.
Visa sold for $75.05 per share Friday. The DCF Calculator gives Visa a fair value of $30.18.
The guru reduced his stake in Illumina Inc. (ILMN, Financial), a biotechnology company based in San Diego, by nearly 54%. Mandel sold 1,934,677 shares for an average price of $157.69 per share. The deal had a -1.59% impact on Mandel’s portfolio.
The remaining stake of 1,675,158 shares is 1.14% of Illumina’s outstanding shares and 1.35% of Mandel’s total assets. Sands is Illumina’s leading shareholder among the gurus with a stake of 5,606,751 shares. The stake is 3.81% of Illumina’s outstanding shares and 2.68% of Sands’ total assets.
Illumina has a P/E of 50, a forward P/E of 42.9, a P/B of 10.2 and a P/S of 9.7. GuruFocus gives Illumina a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with ROE of 22.54% that is higher than 92% of the companies in the Global Medical Instruments & Supplies industry and ROA of 11.25% that is higher than 86% of the companies in that industry.
Illumina sold for $138.91 per share Friday. The DCF Calculator gives Illumina a fair value of $29.75.
Mandel sold his 5,732,050-share stake in Autodesk Inc. (ADSK, Financial), a San Rafael, California-based computer software company, for an average price of $52.12 per share. The divestiture had a -1.49% impact on Mandel’s portfolio.
John Griffin (Trades, Portfolio) is Autodesk’s leading shareholder among the gurus with a stake of 9,970,800 shares. The stake is 4.44% of Autodesk’s outstanding shares and 7.07% of Griffin’s total assets.
Autodesk has a P/B of 8.5 and a P/S of 5.2. GuruFocus gives Autodesk a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of -27.20% that is lower than 82% of the companies in the Global Software – Application industry and ROA of -9.31% that is lower than 75% of the companies in that industry.
Autodesk sold for $54.04 per share Friday. The DCF Calculator gives Autodesk a fair value of $-23.01.
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