T Rowe Price Equity Income Fund Exits Flowserve in 4th Quarter

The most heavily weighted trade was Corning

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Jan 29, 2016
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T Rowe Price Equity Income Fund exited its position in many stocks during the fourth quarter.

The Fund sold out its stake in Corning Inc. (GLW) with an impact of -0.91% on the portfolio.

The company is engaged in manufacturing of specialty glass and ceramics. It operates in five reportable segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences. The fourth-quarter performance was in line with its expectations and generated significant cash flow in the quarter, resulting in $3.2 billion in adjusted operating cash flow for the year despite continuing global economic weakness.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE 9.95% and ROA 7.11% that are outperforming 65% of the companies in the Global Electronic Components industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 1.25; the industry median is 1.23.

Dodge & Cox is the company's largest shareholder among the gurus with 4.03% of outstanding shares followed by HOTCHKIS & WILEY with 3.43%, PRIMECAP Management (Trades, Portfolio) with 1.64%, Charles Brandes (Trades, Portfolio) with 0.61%, Richard Pzena (Trades, Portfolio) with 0.41% and Donald Yacktman (Trades, Portfolio) with 0.29%.

The Fund sold out its stake in Cablevision Systems Corp. (CVC) with an impact of -0.87% on the portfolio.

The company operates through its subsidiary, CSC Holdings. CSC Holdings is a cable operator in the U.S. It also provides high-speed data and Voice over Internet Protocol services using its television broadband network and Ethernet-based data, Internet, voice and video transport and managed services to the business market in the New York metropolitan area. Third quarter consolidated adjusted operating cash flow decreased 11.5%, and consolidated operating income decreased 27.5%.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with easy ROA of 2.98% that is outperforming 53% of the companies in the Global Pay TV industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.15 that is below the industry median of 0.43.

The company’s largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 3.59% of outstanding shares followed by John Paulson (Trades, Portfolio) with 2.82%, Jim Simons (Trades, Portfolio) with 0.28% and Joel Greenblatt (Trades, Portfolio) with 0.04%.

The Fund sold out its stake in Clorox Co. (CLX) with an impact of -0.86% on the portfolio.

The company is a manufacturer and marketer of consumer and professional products. The company operates through four segments: Cleaning, Household, Lifestyle and International. In the first quarter 2016, Clorox delivered earnings from continuing operations of $1.32 diluted EPS, compared to $1.10 diluted EPS in the year-ago quarter. Sales had a growth of 3%, and volume grew 3%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE 334.68% and ROA 15.53% that are outperforming 94% of the companies in the Global Household & Personal Products industry. Financial strength has a rating of 9 out of 10 with a cash-to-debt of 0.17 that is below the industry median of 0.47.

Simons is the company's largest shareholder among the gurus with 1.42% of outstanding shares followed by Yacktman with 0.52%, Pioneer Investments (Trades, Portfolio) with 0.37%, Greenblatt with 0.21%, Yacktman Fund (Trades, Portfolio) with 0.19% and John Hussman (Trades, Portfolio) with 0.03%.

The Fund sold out its stake in Honeywell International Inc. (HON) with an impact of -0.65% on the portfolio.

The company manages its business operations through four reportable segments: Aerospace, Automation and Control Solutions, Performance Materials and Technologies and Transportation Systems.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE 25.07% and ROA 9.85% that are outperforming 87% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.98 that is above the industry median of 0.74.

The company’s largest shareholder among the gurus is James Barrow (Trades, Portfolio) with 1.65% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.67%, First Eagle Investment (Trades, Portfolio) with 0.37% and Mairs and Power (Trades, Portfolio) with 0.31%.

The Fund sold out its stake in Campbell Soup Co. (CPB) with an impact of -0.56% on the portfolio.

The company with its subsidiaries is engaged in manufacturing and marketing of branded convenience food products. Third-quarter sales decreased 4%, and organic sales decreased 1%. The company reported a 2% decrease for adjusted earnings before interest and taxes (EBIT).

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 43.20% and ROA 8.07% that are outperforming 78% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 7 out of 10 with a cash-to-debt of 0.06 that is far below the industry median of 0.47.

Pioneer Investments (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.65% of outstanding shares followed by Gabelli with 0.23%, Simons with 0.08%, Louis Moore Bacon (Trades, Portfolio) with 0.04%, Hussman with 0.03% and Greenblatt with 0.03%.

The Fund sold out its stake in USG Corp. (USG) with an impact of -0.44% on the portfolio.

The company is a manufacturer and distributor of building materials. It produces products for use in new residential, new nonresidential and residential and nonresidential repair and remodel construction as well as products used in certain industrial processes.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with a strong ROE of 24.56% that is outperforming and a weak ROA of 3.18% that is underperforming in the Global Building Materials industry. Financial strength has a rating of 4 out of 10 with a cash-to-debt of 0.19 that is below the industry median of 0.39.

The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 26.78% of outstanding shares followed by Sarah Ketterer (Trades, Portfolio) with 2.57%, David Tepper (Trades, Portfolio) with 0.75% and Pioneer Investments (Trades, Portfolio) with 0.65%.

The Fund sold out its stake in Newmont Mining Corp. (NEM) with an impact of -0.42% on the portfolio.

The company is engaged in the production of and exploration for gold and copper. The Company has assets in the U.S., Australia, Peru, Indonesia, Ghana, New Zealand, Mexico and Suriname.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns of ROE 4.53% and ROA 1.92% that are outperforming 76% of the companies in the Global Gold industry. Financial strength has a rating of 3 out of 10 with a cash-to-debt of 0.47 that is far below the industry median of 1.73.

First Eagle Investment (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.31% of outstanding shares followed by Gabelli with 0.3%, Hussman with 0.26%, Caxton Associates (Trades, Portfolio) with 0.22%, Greenblatt with 0.15% and Ray Dalio (Trades, Portfolio) with 0.12%.

T Rowe Price Equity Income Fund sold out its stake in BP PLCĂ‚ (BP) with an impact of -0.39% on the portfolio.

The company provides energy products and services. It is the parent company of the BP group of companies. The company has two main operating segments, Upstream and Downstream. It reported estimated underlying net income from Rosneft (3) for the quarter of $382 million compared with $110 million in the same quarter of a year before; also it received an annual dividend from Rosneft of $271 million during the quarter.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with negative returns of ROE -6.71% and ROA -2.59% that are outperforming 80% of the companies in the Global Oil & Gas Integrated industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.56 that is above the industry median of 0.36.

The company’s largest shareholder among the gurus is Barrow with 0.82% of outstanding shares followed by Pzena with 0.32%, Bill Gates (Trades, Portfolio) with 0.2% and Brandes with 0.12%.

The Fund sold out its stake in Masco Corp. (MAS) with an impact of -0.37% on the portfolio.

The company manufactures, distributes and installs home improvement and building products, with emphasis on brand name consumer products and services holding positions in their markets.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 74.60% and ROA 5.65% that are outperforming 68% of the companies in the Global Building Materials industry. Financial strength has a rating of 7 out of 10 with a cash-to-debt of 0.37 that is a few below the industry median of 0.39.

First Eagle Investment (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.18% of outstanding shares followed by Pzena with 1.04%, Manning & Napier Advisors Inc., with 0.95%, Third Avenue Management (Trades, Portfolio) with 0.55%, Martin Whitman (Trades, Portfolio) with 0.47% and Greenblatt with 0.18%.

The Fund sold out its stake in Flowserve Corp. (FLS) with an impact of -0.37% on the portfolio.

The company is a manufacturer and aftermarket service provider of comprehensive flow control systems. It develops and manufactures precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials in its customers' critical processes.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 19.62% and ROA 6.97% that are outperforming 75% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.14 that is below the industry median of 0.74.

The company’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 0.6.51% of outstanding shares followed by Manning & Napier Advisors Inc., with 3.71%, Gabelli with 2.02%, Charles de Vaulx (Trades, Portfolio) with 0.61% and Meridian Funds (Trades, Portfolio) with 0.18%.