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Sydnee Gatewood
Sydnee Gatewood
Articles (2456) 

Diamond Hill Capital Gains 4 Holdings in 2nd Quarter

Firm divests 6 other holdings

Diamond Hill Capital (Trades, Portfolio) gained four new holdings during the second quarter. They are Verisk Analytics Inc. (NASDAQ:VRSK), Avnet Inc. (NASDAQ:AVT), Endo International PLC (NASDAQ:ENDP) and Bank of New York Mellon Corp. (NYSE:BK).

Founded in 2000, the firm employs an intrinsic value-based philosophy to invest in companies for the long term to achieve the greatest potential returns and protect capital. The financial services sector represents the majority of the firm’s portfolio of 165 stocks.

In its largest new buy for the quarter, Diamond Hill purchased 634,263 shares of Verisk for an average price of $80.92 per share, giving it 0.29% portfolio space.

The data analytics company has a market cap of $14.39 billion; its shares were trading around $87.37 on Thursday with a price-earnings (P/E) ratio of 24.52, a price-book (P/B) ratio of 10.45 and a price-sales (P/S) ratio of 7.4.

The Peter Lynch chart below shows the stock is trading above its fair value.

1501164373220.png

GuruFocus ranked Verisk’s financial strength 5 of 10 and its profitability and growth 7 of 10. The company does not pay a dividend.

With 1.57% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company’s largest guru shareholder. In all, 13 gurus own the stock.

The firm bought 645,615 shares of Avnet for an average price of $39.55 per share, expanding the portfolio 0.14%.

The electronic parts supplier has a market cap of $4.9 billion; its shares were trading around $39.10 on Thursday with a P/E ratio of 9.39, a P/B ratio of 0.96 and a P/S ratio of 0.19.

According to the Peter Lynch chart below, the stock is trading slightly below its fair value.

1501165291879.png

GuruFocus ranked Avnet’s financial strength 7 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 1.79% and the forward dividend yield is 1.84%.

Among the gurus invested in Avnet, Richard Pzena (Trades, Portfolio) is the largest shareholder with 4.36% of outstanding shares. A total of 18 gurus hold shares.

Having previously sold out of Endo International in second-quarter 2016, Diamond Hill established a new stake of 488,244 shares, giving it 0.03% portfolio space. The firm paid an average price of $11.77 per share.

The specialty health care company has a market cap of $2.5 billion; its shares were trading around $11.20 on Thursday with a forward P/E ratio of 3.32, a P/B ratio of 1.13 and a P/S ratio of 0.64.

Based on the Peter Lynch chart below, the stock appears to be trading below its fair value.

1501166078532.png

GuruFocus ranked Endo’s financial strength 3 of 10 and its profitability and growth 5 of 10. The company does not pay a dividend.

Larry Robbins (Trades, Portfolio) is the company’s largest shareholder among the gurus with 4.65% of outstanding shares. A total of 11 gurus own the stock.

For its final new purchase of the quarter, the firm bought 17,370 shares of Bank of New York Mellon for an average price of $47.80 per share. Diamond Hill previously exited the stock in the third quarter of 2014.

The financial services company has a market cap of $54.93 billion; its shares were trading around $53.17 on Thursday with a P/E ratio of 15.73, a P/B ratio of 1.51 and a P/S ratio of 3.69.

According to the Peter Lynch chart below, the stock is trading slightly above its fair value.

1501166617168.png

GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 1.43% and its forward dividend yield is 1.79%.

With 4.36% of outstanding shares, Dodge & Cox is the company’s largest shareholder among the gurus. A total of 27 gurus have positions.

Diamond Hill also exited six positions during the quarter, including Universal American Corp. (UAM), Cars.com Inc. (NYSE:CARS), Essex Property Trust Inc. (NYSE:ESS), Global Sources Ltd. (NASDAQ:GSOL), Nuvectra Corp. (NVTR) and AT&T Inc. (NYSE:T).

Disclosure: I do not own any stocks mentioned.

About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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