During the first quarter David Einhorn of Greenlight Capital bought eight new stocks. The guru’s portfolio now carries 42 stocks and is valued at $6.7 billion. According to his Investing Philosophy, Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns.
The following five companies are Greenlight Capital’s top five portfolio holdings.
Einhorn’s largest holding is in Apple. The guru currently holds 1,993,706 shares, representing 0.22% of the company’s shares outstanding and a massive 16% of his total portfolio.
Over the past quarter Einhorn cut his holdings -16.85% by selling a total of 404,000 shares of the company’s stock. He sold these shares in the quarterly price range of $499.78 to $561.02, with an estimated average quarterly price of $532.60. Since then the price per share has increased approximately 13.5%.
Einhorn’s holding history of Apple as of the first quarter:
The company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals and networking solutions.
Apple’s historical revenue and net income:
The analysis on Apple reports that the company’s revenue per share has slowed down over the past year, its price is near a 1-year high and the company holds enough cash to cover all of its debt.
The Peter Lynch Chart suggests that Apple is currently undervalued:
Apple has a market cap of $520.6 billion. Its shares are currently trading at around $604.38 with a P/E ratio of 14.50, a P/S ratio of 3.10 and a P/B ratio of 4.30. The company has seen an annual average earnings growth of 63.60% over the past 10 years.
GuruFocus rated Apple the business predictability rank of 4.5-star.
Micron Technology (MU)
Einhorn’s second largest holding is in Micron Technology where he maintains 44,004,293 shares of the company’s stock. This position makes up for 15.6% of his portfolio as well as 4.24% of the company’s shares outstanding.
During the first quarter Einhorn reduced his holdings -7.75% by selling 3,695,907 shares of the company’s stock. He sold these shares in the quarterly price range of $20.67 to $25.49, with an estimated average quarterly price of $23.76. Since then the price per share has increased approximately 10.9%.
Einhorn’s historical holding history:
Micron Technology is a global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, automotive, industrial, embedded and mobile products.
Micron’s historical revenue and net income:
The analysis on Micron Technology reports that the company’s price is near a 10-year high, the company has issued $602 million of debt over the past three years, and the company has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that the company is currently undervalued:
Micron Technology has a market cap of $28.34 billion. Its shares are currently trading around $26.48 with a P/E ratio of 10.90 and a P/S ratio of 2.30. The company had an annual average earnings growth of 1.60% over the past ten years.
GuruFocus rated Micron the business predictability rank of 3-star.
Marvell Technology (MRVL)
Einhorn’s third largest position is in Marvell Technology Group where he maintains 9.3% of his total portfolio. As of the close of the first quarter, Einhorn held 39,429,328 shares of Marvell, representing 8.01% of the company’s shares outstanding.
During the first quarter Einhorn reduced his position by -10.97%. The guru sold 4,859,672 shares at an estimated average quarterly price of $15.29 per share. Since then the price per share has increased approximately 0.3%
Einhorn’s holding history as of the first quarter:
Marvell Technology is a global semiconductor provider of high-performance analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.
Marvell’s historical revenue and net income:
The analysis on Marvell reports that the company’s dividend yield is near a 1-year low and its price is near a 3-year high. The analysis also notes that the company’s Piotroski F-Score is High, the company holds no debt, its operating margin is expanding, and the company has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that Marvell is currently overvalued:
Marvell has a market cap of $7.72 billion. Its shares are currently trading at around $15.34 with a P/E ratio of 24.40, a P/S ratio of 2.30 and a P/B ratio of 1.70. The company had an annual average earnings growth of 10% over the past ten years.
GuruFocus rated Marvell Technology the business predictability rank of 2-star.
Cigna Corp (CI)
David Einhorn’s fourth largest position is in Cigna Corp where he holds 4,211,230 shares, representing 1.49% of the company’s shares outstanding and 5.3% of his total portfolio.
The guru did not alter his position in Cigna over the past quarter. Since his sell in the fourth quarter of 2013, the price per share is trading up approximately 7.5%.
Einhorn’s holding history as of the first quarter:
Cigna is a global health services organization with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services.
Cigna’s historical revenue and earnings growth:
The analysis on Cigna reports that the company’s dividend yield is near a 10-year low, the company’s operating margin is expanding, and its price is sitting at near a 10-year high.
The Peter Lynch Chart shows that the company currently appears to be overvalued:
Cigna has a market cap of $23.63 billion. Its shares were traded at around $87.94 with a P/E ratio of 12.80, a P/S ratio of 0.80 and a P/B ratio of 2.20. The company had an annual average earnings growth of 9.4% over the past ten years.
Oil States International (OIS)
The guru’s fifth largest holding is in Oil States International where he maintains 2,750,000 shares of the company’s stock. This position makes up for 4.1% of his total portfolio holdings as well as 4.99% of the company’s shares outstanding.
The guru has not altered his position in Oil States International since the third quarter of 2013, and since then the price per share has increased approximately 7.5%.
Einhorn’s historical holding history:
Oil States International, through its subsidiaries, is a provider of specialty products and services to oil and gas drilling and production companies throughout the world. The company operates in a substantial number of the world's active oil and gas producing regions.
Oil States’ historical revenue and net income:
The analysis on OIS reports that the company’s revenue has been in decline over the past year, its operating margin is expanding, and the company’s asset growth is currently faster than its revenue growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
Oil States International has a market cap of $5.45 billion. Its shares are currently trading at around $102.73 with a P/E ratio of 14.40, a P/S ratio of 2.10 and a P/B ratio of 2.00. The company had an annual average earnings growth of 16.90% over the past ten years.
Check out David Einhorn’s first quarter portfolio here.
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