John Rogers (Trades, Portfolio) of Ariel Investment LLC purchased 1,884,145 shares in MSG Networks Inc. (MSGN, Financial) for an average price of $16.05 per share on July 31. He now holds 6,268,842 shares.
Rogers has been involved with the company since the first quarter of 2011. The purchase had an impact of 0.36% on his portfolio.
MSG Networks is an entertainment distribution platform that produces, develops and acquires content. It consists of two sports and entertainment networks, MSG Network and MSG+, along with MSGNetworks.com and MSG GO.
The company has a market cap of $1.17 billion with an enterprise value of $2.6 billion. It has a price-earnings (P/E) ratio of 260.9 with a price-sales (P/S) ratio of 0.74. Its operating margin is 19.1%, and its net margin is 0.28%.
GuruFocus ranked MSG’s financial strength 4 of 10 and its profitability and growth 6 of 10. The company has a Piotroski F-Score of 6, indicating a moderately financially strong company. Its Altman Z-Score is 2.11, indicating the company is under some financial stress, but not enough to be in danger of bankruptcy.
Rogers founded Ariel Investment in 1983. He holds stock in 194 companies and is worth $8.3 million. He emphasizes that patience, independent thinking and long-term outlook are necessary for receiving good returns. He mostly invests in small and medium-sized companies whose share prices are undervalued and whose prospects include high barriers to entry, sustainable competitive advantages and predictable fundamentals that allow for cash earnings growth.
Other gurus invested in MSG are Mario Gabelli (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Murray Stahl (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio).
Disclosure: I do not own stock in any companies mentioned in the article.
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