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Tiziano Frateschi
Tiziano Frateschi
Articles (2513)  | Author's Website |

Arnold Schneider's Largest Buys for the 2nd Quarter

Wells Fargo, Adient among firm's largest purchases

Arnold Schneider (TradesPortfolio)'s Schneider Capital Management invested in the following stocks during the second quarter:

Schneider bought a 306,938-share position in Wells Fargo & Co. (NYSE:WFC). The transaction had an impact of 3.23% on the portfolio.

The bank reported a 5% increase in net income and a 65% increase in diluted earnings per share (EPS) for the second quarter.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity (ROE) of 10.17% and return on assets (ROA) 1.15% are outperforming 62% of companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.06 is below the industry median of 2.09.

The company's largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 9.43% of outstanding shares, followed by Dodge & Cox with 1.43%, Barrow, Hanley, Mewhinney & Strauss with 0.7%, Chris Davis (Trades, Portfolio) with 0.52% and PRIMECAP Management (Trades, Portfolio) with 0.37%.

Schneider bought 212,006 shares of Adient PLC (NYSE:ADNT), giving it 2.63% portfolio space.

During the second quarter, the automotive seat manufacturer's GAAP net income increased to $204 million and adjusted EPS increased 4%.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The ROE of -12.67% and ROA of -3.05% are underperforming 93% of companies in the Global Auto Parts industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.20 is below the industry median of 0.59.

Davis is the company's largest shareholder among the gurus with 7.94% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 3.92%, John Griffin (Trades, Portfolio) with 2.53% and Hotchkis & Wiley with 2.3%.

Schneider increased his Herc Holdings Inc. (NYSE:HRI) holding by 83.35%. The transaction had an impact of 2.5% on the portfolio.

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The industrial equipment rental company posted equipment rental revenue of $350.8 million for the quarter, which was up from $327.9 million in the year-ago quarter. Total revenue of $415.8 million increased from $380.4 million last year. 

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The ROE of -24.71% and ROA of -2.19% are underperforming 79% of companies in the Global Rental and Leasing Services industry. Financial strength has a rating of 3 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.69.

Carl Icahn (Trades, Portfolio) is the company's largest guru shareholder with 15.85% of outstanding shares, followed by Mario Gabelli with 12.44%, PRIMECAP Management with 1.48%, Chuck Royce with 1.42% and Murray Stahl (Trades, Portfolio) with 0.05%.

The invester boosted his holding in Whiting Petroleum Corp. (NYSE:WLL) by 63.73%, expanding the portfolio 2.34%.

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During the second quarter, the oil and gas company produced 10.3 million barrels of oil equivalent (MMBOE).

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of -20.76% and ROA of -10.29% are underperforming 71% of companies in the Global Oil and Gas Exploration and Production industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.64.

With 5.38% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Griffin with 1.51%, Richard Snow (Trades, Portfolio) with 1.49% and Gabelli with 0.06%.

Schneider bought 892,856 shares of Huntington Bancshares Inc. (NASDAQ:HBAN), giving it 2.29% portfolio space.

The bank's second-quarter net income grew 56% from the prior-year quarter and earnings per share grew 21%.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 7.82% and ROA of 0.89% are underperforming 61% of companies in the Global Banks - Regional - U.S. industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 2.09.

Steven Cohen is the company's largest shareholder among the gurus with 0.14% of outstanding shares, followed by Gabelli with 0.02%,  Jim Simons with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Schneider established a 600,259-share position in Tronox Ltd. (NYSE:TROX). The transaction had an impact of 1.73% on the portfolio.

The chemical company's second-quarter revenue grew 16% year over year and adjusted EBITDA increased 97%.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of 4.62% and ROA of 0.89% are underperforming 86% of companies in the Global Chemicals industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.76.

The company's largest shareholder among the gurus is Private Capital (Trades, Portfolio) with 1.64% of outstanding shares, followed by Greenblatt with 0.16% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

The guru added 33.15% to his holding of American Equity Investment Life Holding Co. (NYSE:AEL), expanding the portfolio 0.89%.

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The life insurance company posted second-quarter net income of $26.9 million, or 30 cents per share, which increased from $14.7 million, or 18 cents per share, in the prior-year quarter.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The ROE of 7.59% and ROA of 0.34% are outperforming 74% of companies in the Global Insurance - Life industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.39 is above the industry median of 8.84.

Richard Pzena is the company's largest guru shareholder with 2.74% of outstanding shares, followed by Snow with 2.74%, Schneider with 0.81% and Cohen with 0.47%.

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

About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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