During the most recent quarter, world-renowned investor David Tepper (Trades, Portfolio) showed staunch conviction on Allergan while adding just two new positions to his Appaloosa Management portfolio.
Tepper increased his Allergan (AGN, Financial) stake by 352%, making it his fourth-largest position. The drug manufacturer ended the quarter at 7.7% of his portfolio, short only of stakes in Alphabet Inc. (GOOG, Financial), Energy Transfer Partners LP (ETP, Financial) and Williams Partners LP (WPZ, Financial). It is valued at $291.4 million.
He also initiated two other positions: in computer hardware company Western Digital Corp. (WDC, Financial) and food market and distributor U.S. Foods Holding Corp. (USFD, Financial). Tepper invested far less assets into the new positions, with Western Digital valued at $68.5 million and US Foods Holding at $17.9 million.
Often recognized for his stock picking record, Tepper saw each of the three post gains since the end of the second quarter as they remain down year to date.
Tepper purchased 981,700 shares of Allergan, lifting his position to 1,260,809 shares from 279,109 shares he owned in the first quarter. The company’s average second-quarter share price was $231, significantly lower than its first-quarter share price of $286.
Allergan Plc has a market cap of $100.56 billion; its shares were traded around $253.97 with a P/E ratio of 25.12 and P/S ratio of 6.24.
US Foods Holdings Corp. (USFD, Financial)
Tepper purchased 739,675 shares of the company, which had an average second-quarter share price of $24. The holding was worth 0.47% of his portfolio.
US Foods Holding Corp. has a market cap of $5.48 billion; its shares were traded around $24.48 with a P/E ratio of 26.04 and P/S ratio of 0.27.
Western Digital Corp. (WDC, Financial)
Tepper purchased 1.45 million shares of Western Digital, which had an average second-quarter share price of $44. The holding was worth 1.8% of his portfolio.
Western Digital Corp. has a market cap of $10.77 billion; its shares were traded around $46.23 with a P/E ratio of 36.7 and P/S ratio of 0.86. The trailing 12-month dividend yield of Western Digital Corp. stocks is 4.32%. The forward dividend yield of Western Digital Corp. stocks is 4.51%. Western Digital Corp. had an annual average earnings growth of 21.9% over the past 10 years. GuruFocus rated Western Digital Corp the business predictability rank of 3-star.
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