Alan Fournier Sold 6 Holdings in 2nd Quarter
- By David Goodloe
Alan Fournier (Trades, Portfolio), founder and manager of Pennant Capital, sold six holdings in the second quarter, including two with connections to the airline industry.
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The intrinsic value of MIDD
The guru's largest divestiture of the quarter was the sale 1,133,832 shares in The Middleby Corp. (MIDD), an Illinois-based commercial cooking equipment company, for an average price of $114.64. The deal had a -3.46% impact on the portfolio.
Middleby's leading shareholder among the gurus is Ron Baron (Trades, Portfolio) with a stake of 2,605,017 shares. The stake is 4.53% of Middleby's outstanding shares and 1.6% of the guru's total assets.
Middleby has a price-earnings (P/E) ratio of 30.89, a forward P/E of 22.27, a price-book (P/B) ratio of 5.54 and a price-sales (P/S) ratio of 3.37. GuruFocus gives Middleby a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with return on equity (ROE) of 19.18% that is higher than 87% of the companies in the Global Diversified Industrials industry and return on assets (ROA) of 8.49% that is higher than 83% of the companies in that industry.
Middleby sold for $122.93 per share at market close Friday. The DCF Calculator gives Middleby a fair value of $98.61.
The guru sold a 2,550,166-share stake in Marathon Petroleum Corp. (MPC), an Ohio-based oil and gas company, for an average price of $36.74 per share. The deal had a -2.71% impact on the portfolio.
Marathon's leading shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with a stake of 24,511,104 shares. The stake is 4.64% of Marathon's outstanding shares and 1.42% of the guru's total assets.
Marathon has a P/E ratio of 11.60, a forward P/E of 12.38, a P/B ratio of 1.68 and a P/S ratio of 0.35. GuruFocus gives Marathon a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 15.23% that is higher than 65% of the companies in the Global Oil & Gas Refining & Marketing industry and ROA of 5.10% that is higher than 57% of the companies in that industry.
Marathon sold for $42.24 per share Friday. The DCF Calculator gives Marathon a fair value of $38.88.
The guru sold a 1,488,100-share stake in United Continental Holdings (UAL), a Chicago-based airline holding company, for an average price of $47.51 per share. The divestiture had a -2.54% impact on the portfolio.
United Continental's leading shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with a stake of 19,587,105 shares. The stake is 6.08% of United Continental's outstanding shares and 0.86% of the guru's total assets.
United Continental has a P/E ratio of 2.93, a forward P/E of 8.36, a P/B ratio of 2.26 and a P/S ratio of 0.54. GuruFocus gives United Continental a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 87.75% that is higher than 97% of the companies in the Global Airlines industry and ROA of 16.11% that is higher than 91% of the companies in that industry.
United Continental sold for $52.45 per share Friday. The DCF Calculator gives United Continental a fair value of $190.49 with a 72% margin of safety.
The guru sold a 1,664,150-share stake in Delta Air Lines (DAL), an Atlanta-based airline, for an average price of $42.61 per share. The transaction had a -2.31% impact on the portfolio.
Delta's leading shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with a stake of 19,473,230 shares. The stake is 2.6% of Delta's outstanding shares and 0.76% of PRIMECAP's total assets.
Delta has a P/E ratio of 6.12, a forward P/E of 6.95, a P/B ratio of 2.48 and a P/S ratio of 0.77. GuruFocus gives Delta a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 44.47% that is higher than 84% of the companies in the Global Airlines industry and ROA of 9.05% that is higher than 72% of the companies in that industry.
Delta sold for $37.75 per share Friday. The DCF Calculator gives Delta a fair value of $65.82 with a 43% margin of safety.
The guru sold 700,440 shares in Monsanto (MON), a Missouri-based biotechnology company, for an average price of $98.88 per share. The deal had a -1.75% impact on the portfolio.
Monsanto's leading shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with a stake of 11,370,263 shares. The stake is 2.6% of Monsanto's outstanding shares and 1.25% of PRIMECAP's total assets.
Monsanto has a P/E ratio of 43.23, a forward P/E of 22.47, a P/B ratio of 9.13 and a P/S ratio of 3.58. GuruFocus gives Monsanto a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 18.33% that is higher than 80% of the companies in the Global Agricultural Inputs industry and ROA of 4.90% that is higher than 60% of the companies in that industry.
Monsanto sold for $106.78 per share Friday. The DCF Calculator gives Monsanto a fair value of $69.18.
The guru sold 708,200 shares in Manitowoc (MTW), a Wisconsin-based manufacturer of heavy equipment, for an average price of $5.42 per share. The divestiture had a -0.09% impact on the portfolio
Carl Icahn (Trades, Portfolio) is Manitowoc's leading shareholder among the gurus with a stake of 10,582,660 shares. The stake is 7.69% of Manitowoc's outstanding shares and 0.28% of the guru's total assets.
Manitowoc has a forward P/E of 54.05, a P/B ratio of 0.83 and a P/S ratio of 0.25. GuruFocus gives Manitowoc a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of -20.41% that is lower than 89% of the companies in the Global Farm & Construction Equipment industry and ROA of -5.46% that is lower than 83% of the companies in that industry.
Manitowoc sold for $4.6 per share Friday. The DCF Calculator gives Manitowoc a fair value of $-12.31.
Disclosure: I do not own any stocks mentioned in this article.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Sign with MIDD. Click here to check it out.
The intrinsic value of MIDD
