The founder of Fairfax Financial Holdings, Prem Watsa (Trades, Portfolio), sold shares of the following stocks during the third quarter.
Cray
Watsa exited his Cray Inc. (CRAY, Financial) position. The portfolio was impacted by -0.33%.
The provider of storage and data analytics solutions has a market cap of $1.45 billion and an enterprise value of $1.34 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of -32.47% and return on assets of -21.51% are underperforming 91% of companies in the hardware industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 3.7 is above the industry median of 1.22.
Red Hat
The guru's Red Hat Inc. (RHT, Financial) holding was dissolved after its merger with IBM (IBM, Financial) closed. The portfolio was impacted by -0.11%.
On its last day of trading, the company had a market cap of $33.43 billion and an enterprise value of $31.33 billion.
GuruFocus gave the company a profitability and growth rating of 10 out of 10. The return on equity of 30.72% and return on assets of 8.79% were outperforming 100% of companies in the software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 6.57 is above the industry median of 2.33.
Jacobs Engineering Group
The Jacobs Engineering Group Inc. (JEC, Financial) position was reduced by 31.91%, impacting the portfolio by -0.07%.
One of the largest providers of engineering and construction services has a market cap of $12.77 billion and an enterprise value of $13.07 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 11.47% and return on assets of 5.33% are outperforming 66% of companies in the construction industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.8 is above the industry median of 0.63.
The largest guru shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 5.58% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 4.15%, Barrow, Hanley, Mewhinney & Strauss with 3.38% and Joel Greenblatt (Trades, Portfolio) with 0.17%.
Array BioPharma
The guru closed his Array BioPharma Inc. (ARRY, Financial) holding. The trade had an impact of -0.07% on the portfolio.
The biopharmaceutical company has a market cap of $10.68 billion and an enterprise value of $10.39 billion.
GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of -48.85% and return on assets of -24.66% are outperforming 100% of companies in the biotechnology industry. Its financial strength is rated 6 out of 10, with a cash-debt ratio of 3.15 that is below industry median of 9.6.
K12
Watsa exited his K12 Inc. (LRN, Financial) holding. The portfolio was impacted by -0.06%.
The online educational company has a market cap of $808.45 million and an enterprise value of $693.44 million.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the return on equity of 5.84% is underperforming the sector, the return on assets of 4.46% is outperforming 54% of companies in the education industry. Its financial strength is rated 9 out of 10, with a cash-debt ratio of 3.26 that is above the industry median of 1.63.
The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 4.30% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 1.15%, Pioneer Investments (Trades, Portfolio) with 0.20% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.
Disclosure: I do not own any stocks mentioned.
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