Barrow, Hanley, Mewhinney & Strauss trimmed existing stakes in six of its top 10 transactions in the second quarter.
The largest reduction was the guru’s sale of more than 23% of its stake in Medtronic PLC (MDT, Financial), a Dublin-based medical device company. The guru sold 6,404,245 shares for an average price of $80.78 per share in a transaction that had a -0.73% impact on the portfolio.
The remaining stake of 21,090,262 shares is 1.53% of Medtronic’s outstanding shares and 2.79% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is Medtronic’s leading shareholder among the gurus.
Medtronic has a price-earnings (P/E) ratio of 33.02, a forward P/E of 18.52, a price-book (P/B) ratio of 2.33 and a price-sales (P/S) ratio of 4.19. GuruFocus gives Medtronic a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with return on equity (ROE) of 7.05% that is higher than 64% of the companies in the Global Medical Devices industry and return on assets (ROA) of 3.57% that is higher than 63% of the companies in that industry.
Medtronic sold for $84.84 per share at market close Tuesday. The DCF Calculator gives Medtronic a fair value of $27.5.
The guru trimmed its stake in Entergy Corp. (ETR, Financial), a New Orleans-based energy company, by more than 54% with the sale of 5,508,150 shares for an average price of $76.78 per share. The deal had a -0.67% impact on the portfolio.
The guru’s remaining stake of 4,653,123 shares is 2.6% of Entergy’s outstanding shares and 0.58% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is Entergy’s leading shareholder among the gurus.
Entergy has a P/E of 80.85, a forward P/E of 15.15, a P/B of 1.43 and a P/S of 1.28. GuruFocus gives Entergy a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of 1.82% that is lower than 78% of the companies in the Global Utilities – Diversified industry and ROA of 0.43% that is lower than 79% of the companies in that industry.
Entergy sold for $76.89 per share Tuesday. The DCF Calculator gives Entergy a fair value of $10.17.
The guru pared its stake in Honeywell International Inc. (HON, Financial), a conglomerate based in New Jersey, by more than 20% with the sale of 2,507,192 shares for an average price of $114.35 per share. The transaction had a -0.43% impact on the portfolio.
The remaining stake of 9,890,506 shares is 1.3% of Honeywell’s outstanding shares and 1.75% of the guru’s total assets. The guru is Honeywell’s leading shareholder among the gurus.
Honeywell has a P/E of 17.63, a forward P/E of 15.65, a P/B of 4.50 and a P/S of 2.23. GuruFocus gives Honeywell a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 26.93% that is higher than 92% of the companies in the Global Diversified Industrials industry and ROA of 10.10% that is higher than 87% of the companies in that industry.
Honeywell sold for $111.6 per share Tuesday. The DCF Calculator gives Honeywell a fair value of $92.62.
The guru sold nearly 35% of its stake in CenterPoint Energy Inc. (CNP, Financial), an electric and natural gas utility company based in Houston. The guru sold 11,973,670 shares for an average price of $22.06 per share in a deal that had a -0.38% impact on the portfolio.
The guru’s remaining stake of 22,668,451 shares is 5.26% of CenterPoint’s outstanding shares and 0.83% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is CenterPoint’s leading shareholder among the gurus.
CenterPoint has a forward P/E of 18.73, a P/B of 2.85 and a P/S of 1.41. GuruFocus gives CenterPoint a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10 with ROE of -19.71% that is lower than 93% of the companies in the Global Utilities – Regulated Gas industry and ROA of -3.47% that is lower than 90% of the companies in that industry.
CenterPoint sold for $22.44 per share Tuesday. The DCF Calculator gives CenterPoint a fair value of $-18.62.
Barrow, Hanley, Mewhinney & Strauss sold more than 25% of its stake in Ford Motor Co. (F, Financial), a Dearborn, Michigan-based automaker. The guru sold 17,758,719 shares for an average price of $13.19 per share. The transaction had a -0.37% impact on the guru’s portfolio.
The remaining stake of 51,943,876 shares is 1.31% of Ford’s outstanding shares and 0.99% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is Ford’s leading shareholder among the gurus.
Ford has a P/E of 5.50, a forward P/E of 7.22, a P/B of 1.63 and a P/S of 0.32. GuruFocus gives Ford a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 31.38% that is higher than 91% of the companies in the Global Auto Manufacturers industry and ROA of 3.95% that is higher than 51% of the companies in that industry.
Ford sold for $12.38 per share Tuesday. The DCF Calculator gives Ford a fair value of $23.97 with a 48% margin of safety.
The guru trimmed its stake in Johnson & Johnson (JNJ, Financial), a New Jersey-based medical device and pharmaceutical company, by nearly 14%. Barrow, Hanley, Mewhinney & Strauss sold 2,116,874 shares for an average price of $113.54 per share. The deal had a -0.35% impact on the portfolio.
The remaining stake of 13,210,591 shares is 0.48% of Johnson & Johnson’s outstanding shares and 2.44% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is Johnson & Johnson’s leading shareholder among the gurus.
Johnson & Johnson has a P/E of 22.10, a forward P/E of 16.75, a P/B of 4.45 and a P/S of 4.72. GuruFocus gives Johnson & Johnson a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with ROE of 20.70% that is higher than 84% of the companies in the Global Drug Manufacturers – Major industry and ROA of 11.01% that is higher than 81% of the companies in that industry.
Johnson & Johnson sold for $117.61 per share Tuesday. The DCF Calculator gives Johnson & Johnson a fair value of $56.93.
Disclosure: I do not own any stocks mentioned in this article.
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