1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Sydnee Gatewood
Sydnee Gatewood
Articles (328) 

Paul Singer Picks Up 3 Technology Companies in 2nd Quarter

Activist guru releases quarterly portfolio

Elliott Management founder Paul Singer (Trades, Portfolio) established 15 new positions during the second quarter, of which three were in technology companies. He bought NXP Semiconductors NV (NASDAQ:NXPI), Gigamon Inc. (NYSE:GIMO) and Athenahealth Inc. (NASDAQ:ATHN).

Singer, a well-known activist investor, manages a portfolio of 78 stocks valued at $15.9 billion. Technology stocks currently compose 21.3% of his overall holdings.

NXP Semiconductors

In his largest transaction of the quarter, Singer purchased 12.4 million shares of NXP Semiconductors for an average price of $107.12 per share, giving it 8.53% portfolio space. He previously exited the stock in the first quarter.

The semiconductor manufacturer has a market cap of $37.95 billion; its shares were trading around $112.06 on Monday with a price-earnings (P/E) ratio of 19.65, a price-book (P/B) ratio of 3.02 and a price-sales (P/S) ratio of 4.23.

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

1503929575499.png

The company, which is headquartered in the Netherlands, reported its second-quarter results on Aug. 3. It posted revenue of $2.2 billion, down 7% year over year. The GAAP gross margin was 49.2%, and the GAAP operating margin was 2.3%.

GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 7 of 10.

With his purchase, Singer became the company’s largest guru shareholder with 3.66% of outstanding shares. A total of 14 gurus own the stock.

Gigamon

Singer bought 2.6 million shares of Gigamon for an average price of $37.72 per share, expanding the portfolio 0.65%.

The cybersecurity and network visibility software company has a market cap of $1.53 billion; its shares were trading around $40.95 on Monday with a P/E ratio of 682.5, a P/B ratio of 5.25 and a P/S ratio of 5.01.

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

1503930794092.png

The California-based company reported its performance for the second quarter on July 27. It posted revenue of $69.1 million, down from $75.1 million in the prior-year quarter. The net loss for the quarter was $7.3 million, or 20 cents per share, a decrease from net income of $34 million, or 91 cents per share, in the year-ago quarter.

GuruFocus ranked the company’s financial strength 9 of 10 and its profitability and growth 7 of 10.

With his purchase, Singer became the company’s largest shareholder among the gurus with 7.03% of outstanding shares. Steven Cohen (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), John Hussman (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) are also shareholders.

Athenahealth

Singer purchased 375,000 shares of Athenahealth for an average price of $124.82 per share. The trade had an impact of 0.33% on the portfolio.

The health care IT services company has a market cap of $5.59 billion; its shares were trading around $139.52 on Monday with a P/E ratio of 175.08, a P/B ratio of 7.8 and a P/S ratio of 4.88.

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

1503931605131.png

The Massachusetts-based company reported its second-quarter results on July 20. It posted revenue of $301.1 million, which grew 15% from $261.9 million in the year-ago quarter, and GAAP earnings per share of 24 cents.

GuruFocus ranked the company’s financial strength 7 of 10 and its profitability and growth 8 of 10.

Among the gurus invested in Athenahealth, the Vanguard Health Care Fund (Trades, Portfolio) has the largest position with 6.2% of outstanding shares. Frank Sands (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Royce and George Soros (Trades, Portfolio) also own the stock.

Other positions Singer established during the quarter include Peabody Energy Corp. (NYSE:BTU), Nord Anglia Education Inc. (NYSE:NORD), Wyndham Worldwide Corp. (NYSE:WYN), Vantage Energy Acquisition Corp. (NASDAQ:VEACU), Ares Capital Corp. (NASDAQ:ARCC), Fairmound Santrol Holdings Inc. (NYSE:FMSA), Nomad Foods Ltd. (NYSE:NOMD) and several others.

Disclosure: I do not own any stocks mentioned.

About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and an 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! @gurusydneeg

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Sydnee Gatewood


User Generated Screeners


alberto.lopezblancoMomentum / Deep Value_V2
alberto.lopezblancoMomentum / Deep Value_volume
alberto.lopezblancoAdquirer's Multiple
HOLKLSUTest First Group Trump Trade
pbarker46Begin here, dividend growth
56748392AJM PEG
richardnealfrankethan
charliebatteninside + price
sunnywhyDAILY-C
sunnywhyWEEKLY-C
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK