Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. His son, Stephen Yacktman, now primarily runs the firm. During the third quarter, the guru reduced his position in the following stocks:
Yacktman’s position in Procter & Gamble Co. (PG, Financial) was reduced by 14.62%. The trade had an impact of -1.92% on the portfolio.
The company provides consumer packaged goods. It markets its products in about 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores and department stores among others. First quarter diluted earnings per share grew 5% while the operating profit margin was unchanged. The company repurchased $1 billion of common stock and returned $1.9 billion of cash to shareholders as dividends.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The return on equity (ROE) of -17.35% and return on assets (ROA) of 8.27% are outperforming 76% of the companies in the Global Household & Personal Products industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.45 is below the industry median of 0.50.
The largest shareholder of the company among the gurus is Yacktman with 0.6% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.3%, the Yacktman Fund (Trades, Portfolio) with 0.29%, the Yacktman Focused Fund (Trades, Portfolio) with 0.19% and Diamond Hill Capital (Trades, Portfolio) with 0.12%.
The guru’s holding of PepsiCo Inc. (PEP, Financial) was reduced by 17.07%. The transaction had an impact of -1.59% on the portfolio.
Pepsico is a food, snack and beverage company. Its products are sold in 200 countries and territories. Net revenue declined 1.9% from the third quarter of the prior year and the gross margin expanded 40 basis points. The company reported a 282% increase for earnings per share.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 54.16% and ROA of 9.33% are outperforming 73% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.42 is below the industry median of 0.74.
Ken Fisher (Trades, Portfolio) is another notable shareholder of the company among the gurus with 0.38% of outstanding shares, followed by the Yacktman Fund (Trades, Portfolio) with 0.3%, Pioneer Investments (Trades, Portfolio) with 0.19%, First Eagle Investment (Trades, Portfolio) with 0.17%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.17% and the Yacktman Focused Fund (Trades, Portfolio) with 0.17%.
The guru reduced his position in Cisco Systems Inc. (CSCO, Financial) by 8.70%. The trade had an impact of -0.58% on the portfolio.
The company is engaged in designing, manufacturing and selling Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry. First quarter revenue grew 1% year over year but net income declined 4%.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 17.14% and ROA of 8.99% are outperforming 84% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio is 2.04.
The largest shareholder of the company among the gurus is Dodge & Cox with 1.33% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.55%, Yacktman with 0.51%, Jeremy Grantham (Trades, Portfolio) with 0.47%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Ken Fisher (Trades, Portfolio) with 0.31% and the Yacktman Fund (Trades, Portfolio) with 0.27%.
Yacktman's position in Johnson & Johnson (JNJ, Financial) was reduced by 7.91%. The trade had an impact of -0.53% on the portfolio.
Johnson & Johnson is a holding company engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments. During the third quarter, sales grew 4.2% and operational sales increased 4.3% from the same quarter of a year before. Net earnings were $4.3 billion and diluted earnings per share were $1.53.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 21.88% and ROA of 11.55% are outperforming 83% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.50 is below the industry median of 1.59.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 0.45% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.4%, Jeremy Grantham (Trades, Portfolio) with 0.27%, Pioneer Investments (Trades, Portfolio) with 0.13% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.12%.
Yacktman trimmed his position in Microsoft Corp. (MSFT, Financial) by 6.90%. The transaction had an impact of -0.37% on the portfolio.
Microsoft designs, manufactures and sells devices and online advertising. Its products include operating systems for computing devices, servers, phones and other devices. Recently, the company announced it completed the acquisition of LinkedIn. Third quarter diluted earnings per share was 60 cents on a generally accepted accounting principles basis and 76 cents on a non-GAAP basis.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 22.30% and ROA of 8.80% are outperforming 77% of the companies in the Global Software - Infrastructure industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.83 is below the industry median of 6.37.
The largest shareholder of the company among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.73% of outstanding shares, followed by Dodge & Cox with 0.57%, Jeff Ubben (Trades, Portfolio) with 0.5%, Barrow, Hanley, Mewhinney & Strauss with 0.3%, Ken Fisher (Trades, Portfolio) with 0.24% and Jeremy Grantham (Trades, Portfolio) with 0.22%.
The guru reduced his stake in Intel Corp. (INTC, Financial) by 43%. The impact on the portfolio was -0.24%.
Intel produces semiconductor chips and develops integrated digital technology products, such as integrated circuits, for industries involved in computing and communications. During the third quarter, non-GAAP net income grew 21% year over year due to the company's strong execution of objectives and demand for products.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 17.06% and ROA of -9.83% are outperforming 83% of the companies in the Global Semiconductors industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 0.64 is below the industry median of 1.55.
The largest shareholder of the company among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.66% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.42%, Bill Nygren (Trades, Portfolio) with 0.21%, Richard Pzena (Trades, Portfolio) with 0.18%, Jeremy Grantham (Trades, Portfolio) with 0.08%, Barrow, Hanley, Mewhinney & Strauss with 0.07% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Yacktman's holding of Sysco Corp. (SYY, Financial) was cut by 9.86%. The transaction had an impact of -0.14% on the portfolio.
The company is engaged in the distribution of food and related products to the foodservice industry.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 26.10% and ROA of 6.90% are outperforming 77% of the companies in the Global Food Distribution industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.49.
The company is also held by two of his firm's funds, the Yacktman Fund (Trades, Portfolio) with 1.37% of outstanding shares and the Yacktman Focused Fund (Trades, Portfolio) with 0.77%. Other gurus with positions in Sysco are Jim Simons (Trades, Portfolio) with 0.71%, Joel Greenblatt (Trades, Portfolio) with 0.2%, Diamond Hill Capital (Trades, Portfolio) with 0.06% and Manning & Napier Advisors Inc. with 0.01%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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