Marathon Partners founder Mario Cibelli (Trades, Portfolio) gained three new positions during the second quarter. He established positions in Macerich Co. (MAC, Financial), HD Supply Holdings Inc. (HDS, Financial) and Molson Coors Brewing Co. (TAP, Financial).
Cibelli manages a fairly concentrated portfolio of 33 stocks, which is valued at $218 million. Consumer cyclical stocks represent 41.6% of his holdings.
Macerich
In his largest purchase for the quarter, Cibelli bought 165,000 shares of Macerich for an average price of $60.59 per share, giving it 4.39% portfolio space.
The real estate investment trust has a market cap of $8.04 billion; its shares were trading around $56.86 on Monday with a price-earnings (P/E) ratio of 55.21, a price-book (P/B) ratio of 2.09 and a price-sales (P/S) ratio of 7.99.
The Peter Lynch chart below shows the stock is trading above its fair value.
The California-based REIT reported its second-quarter results on Aug. 2, posting net income of $26.6 million and diluted earnings per share of 19 cents, down from the prior-year quarter’s net income of $45.2 million and diluted EPS of 31 cents.
GuruFocus ranked Macerich’s financial strength 4 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 4.95%, and its forward dividend yield is 5.01%. The dividend payout ratio is 263%.
With 0.27% of outstanding shares, Third Avenue Management (Trades, Portfolio) is the company’s largest guru shareholder. Manning & Napier Advisors Inc. and Michael Price (Trades, Portfolio) are also shareholders.
HD Supply Holdings
Cibelli purchased 182,500 shares of HD Supply Holdings for an average price of $37.88 per share, expanding the portfolio 2.56%.
The industrial distributor has a market cap of $6.29 billion; its shares were trading around $30.98 on Monday with a P/E ratio of 21.13, a P/B ratio of 5.61 and a P/S ratio of 0.84.
According to the Peter Lynch chart below, the stock is trading above its fair value.
While its second-quarter results have not yet been released, the company reported net sales of $1.9 billion for its first quarter, which ended April 30, a 5.2% increase from the comparable quarter of 2016.
GuruFocus ranked the company’s financial strength 4 of 10 and its profitability and growth 5 of 10. The company does not currently pay a dividend.
Among the gurus invested in HD Supply, John Griffin (Trades, Portfolio) has the largest holding with 3.55% of outstanding shares. A total of nine gurus own the stock.
Molson Coors Brewing
The guru bought 57,500 shares of Molson Coors for an average price of $92.71 per share. The trade had an impact of 2.28% on the portfolio.
The beer brewer has a market cap of $19.6 billion; its shares were trading around $91.03 on Monday with a P/E ratio of 9.02, a P/B ratio of 1.62 and a P/S ratio of 2.25.
Based on the Peter Lynch chart below, the stock appears to be trading below its fair value.
The company reported its second quarter on Aug. 2, posting its revenue of $3.091 billion that declined 0.6% from the year-ago quarter but increased 1.3% on a constant currency basis. EPS of $1.49 increased 4.2%.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield and forward dividend yield are both 1.81%. The dividend payout ratio is 16%.
Diamond Hill Capital (Trades, Portfolio) is the company’s largest shareholder among the gurus with 1.22% of outstanding shares. In all, eight gurus hold the stock.
During the quarter, Cibelli also added to his holdings in US Foods Holding Corp. (USFD, Financial), SeaWorld Entertainment Inc. (SEAS, Financial), J. Alexander’s Holdings Inc. (JAX, Financial) and Travelport Worldwide Ltd. (TVPT, Financial).
Disclosure:Â I do not own any stocks mentioned.
