Jeff Ubben Added to 6 Stakes in 3rd Quarter

Guru adds to holdings in Alliance Data Systems, Seagate Technology, Trinity Industries

Author's Avatar
Nov 16, 2016
Article's Main Image

Jeff Ubben (Trades, Portfolio), founder, CEO and chief investment officer of ValueAct Holdings LP, added to half a dozen stakes in the third quarter.

Ubben increased the position in Alliance Data Systems Corp. (ADS, Financial), a Plano, Texas-based loyalty and marketing solutions provider, by more than 52% with the purchase of 1,712,090 shares for an average price of $213.31 per share. The transaction had a 3.19% impact on the portfolio.

Ubben is Alliance Data Systems’ leading shareholder among the gurus with a stake of 3,287,910 shares. His stake represents 5.69% of the company’s outstanding shares.

Alliance Data Systems has a price-earnings (P/E) ratio of 22.18, a forward P/E of 11.25, a price-book (P/B) ratio of 6.89 and a price-sales (P/S) ratio of 1.77. GuruFocus gives Alliance Data Systems a Financial Strength rating of 4/10 and a Profitability and Growth rating of 9/10 with return on equity (ROE) of 30.73% that is higher than 92% of the companies in the Global Credit Services industry and return on assets (ROA) of 3.05% that is higher than 60% of the companies in that industry.

02May2017142740.png

Alliance Data Systems sold for $210.14 per share at market close Tuesday. The DCF Calculator gives Alliance Data Systems a fair value of $234.88 with an 11% margin of safety.

Ubben boosted the stake in Seagate Technology PLC (STX, Financial), a California-based data storage company, by nearly 218% with the purchase of 6,539,490 shares for an average price of $32.46 per share. The deal had a 2.19% impact on the portfolio.

Richard Pzena (Trades, Portfolio) is Seagate’s leading shareholder among the gurus with a stake of 11,068,116 shares. The stake is 3.76% of Seagate’s outstanding shares.

Seagate Technology has a P/E ratio of 30.56, a forward P/E of 11.89, a P/B ratio of 7.45 and a P/S ratio of 1.03. GuruFocus gives Seagate a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 22.30% that is higher than 92% of the companies in the Global Data Storage industry and ROA of 4.42% that is higher than 61% of the companies in that industry.

02May2017142740.png

Seagate sold for $38.51 per share Tuesday. The DCF Calculator gives Seagate a fair value of $13.48.

Ubben raised the position in Trinity Industries Inc. (TRN, Financial), a Dallas-based conglomerate, by more than 107% with the purchase of 6,421,000 shares for an average price of $22.88 per share. The transaction had a 1.35% impact on the portfolio.

Ubben is Trinity Industries’ leading shareholder among the gurus with a stake of 12,421,000 shares. The stake is 8.16% of Trinity Industries’ outstanding shares.

Trinity Industries has a P/E ratio of 8.67, a forward P/E of 18.12, a P/B ratio of 1.07 and a P/S ratio of 0.81. GuruFocus gives Trinity a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 13.32% that is higher than 78% of the companies in the Global Railroads industry and ROA of 5.32% that is higher than 72% of the companies in that industry.

02May2017142741.png

Trinity sold for $26.99 per share Tuesday. The DCF Calculator gives Trinity a fair value of $33.28 with a 19% margin of safety.

Ubben increased the stake in Morgan Stanley (MS, Financial), a New York-based financial services company, by more than 10% with the purchase of 3.9 million shares for an average price of $29.83 per share. The deal had a 1.09% impact on the portfolio.

Ubben is Morgan Stanley’s leading shareholder among the gurus with a stake of 38 million shares. The stake is 2.03% of Morgan Stanley’s outstanding shares.

Morgan Stanley has a P/E ratio of 16, a forward P/E of 12.90, a P/B ratio of 1.04 and a P/S ratio of 2.26. GuruFocus gives Morgan Stanley a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with ROE of 6.24% that is higher than 61% of the companies in the Global Capital Markets industry and ROA of 0.64% that is lower than 58% of the companies in that industry.

02May2017142741.png

Morgan Stanley sold for $40 per share Tuesday. The DCF Calculator gives Morgan Stanley a fair value of $26.65.

Ubben hiked the stake in Twenty-First Century Fox Inc. (FOX, Financial), a New York-based mass media company, by more than 6% with the purchase of 3 million shares for an average price of $26.06 per share. The transaction had a 0.65% impact on the portfolio.

Ubben is Twenty-First Century Fox’s leading shareholder among the gurus with a stake of 50,326,334 shares. The stake is 2.71% of Twenty-First Century Fox’s outstanding shares.

Twenty-First Century Fox has a P/E ratio of 18.09, a forward P/E of 14.22, a P/B ratio of 3.71 and a P/S ratio of 1.92. GuruFocus gives Twenty-First Century Fox a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 20.22% that is higher than 83% of the companies in the Global Media – Diversified industry and ROA of 5.99% that is higher than 69% of the companies in that industry.

02May2017142742.png

Twenty-First Century Fox sold for $27.4 per share Tuesday. The DCF Calculator gives Twenty-First Century Fox a fair value of $16.27.

Ubben boosted the stake in CBRE Group Inc. (CBG, Financial), a Los Angeles-based real estate company, by more than 5% with the purchase of 1,684,260 shares for an average price of $28.54 per share. The deal had a 0.41% impact on the portfolio.

Ubben is CBRE’s leading shareholder among the gurus with a stake of 34,620,054 shares. The stake is 10.26% of CBRE’s outstanding shares.

CBRE has a P/E ratio of 19.76, a forward P/E of 20.37, a P/B ratio of 3.25 and a P/S ratio of 0.73. GuruFocus gives CBRE a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 17.60% that is higher than 83% of the companies in the Global Real Estate Services industry and ROA of 4.77% that is higher than 69% of the companies in that industry.

02May2017142742.png

CBRE sold for $28.63 per share Tuesday. The DCF Calculator gives CBRE a fair value of $15.52.

Disclosure: I do not own any stocks mentioned in this article.

Start a free seven-day trial of Premium Membership to GuruFocus.