Richard Pzena (Trades, Portfolio) Chops Holdings in Application Software Company in Half
Last week guru Richard Pzena (Trades, Portfolio) of Pzena Investment Management cut his holdings in ARC Document Solutions (ARC, Financial) by -58.87%. The guru sold off a total of 1,812,957 shares of his company’s stock. The guru now holds on to 1,266,691 shares of the company’s stock. Pzena sold these shares at around $10.07 per share, and since then the price per share has since dropped about -2%.
As of the close of the second quarter, Pzena held on to over 3.7 million shares, and since then the price per share has jumped a sizeable 59.1%. Pzena’s historical holding history as of the close of 2014 Q2:
As shown in the chart above, Pzena has held a stake in ARC Document Solutions since the second quarter of 2012 and since then the guru has seen an average gain of 33% on shares bought.
ARC Document Solutions is engaged in providing document solutions to businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industry. The company helps its customers reduce their costs and improve efficiency in the use of their documents, improve their access and control over documents, etc.
ARC Document Solutions’ historical revenue and net income:
Prior to his most recent sell of ARC stock, Pzena was the largest guru shareholder of the company’s stock with 6.6% of the company’s shares outstanding in his pocket. But now Pzena holds on to a much smaller 2.71% of Arc’s shares outstanding, now trailing John Rogers (Trades, Portfolio)’ 2.2 million shares. Along with Rogers and Pzena there are three other gurus with a position in ARC Document Solutions’ stock. You can check out their holdings here.
The company recently released its third quarter holdings which highlighted:
- Adjusted EPS of $0.06 versus $0.03 per share last year
- Cash flow from operations was $15.3 million
- Its gross margin increased 140 base points to 33.9%
- It’s quarterly revenue is up to $106.8 million, up from $101.3 million last year
The GuruFocus analysis on ARC Document Solutions reports that the company’s revenue per share has been in decline over the past five years, its price is near a 5-year high and its P/S ratio is sitting near a 10-year high.
You can check out Richard Pzena’s other portfolio holdings here.
ARC Document Solutions has a market cap of $470.089 million. Its shares are currently trading at around $10.07 with a P/S ratio of 1.13 and a P/B ratio of 4.68.
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