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Diamond Hill Trims CVS Health, Exits Goodyear

- By Tiziano Frateschi

Investment management firm Diamond Hill Capital (Trades, Portfolio) sold shares of the following stocks during the first quarter.


The CVS Health Corp. (CVS) position was reduced by 87.04%. The trade had an impact of -1.74% on the portfolio.

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The drugstore chain has a market cap of $74.44 billion and an enterprise value of $141.60 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -0.38% and the return on assets of -0.10% are outperforming 62% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.11 is below the industry median of 1.15.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 1.48% of outstanding shares, followed by Dodge & Cox with 1.24% and the Vanguard Health Care Fund (Trades, Portfolio) with 0.97%.

The firm divested of its Goodyear Tire & Rubber Co. (GT) stake, impacting the portfolio by -0.70%.

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The tire manufacturer has a market cap of $4.31 billion and an enterprise value of $10.17 billion.


GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 11.68% and return on assets of 3.18% are outperforming 51% of companies in the Rubber and Plastics industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.61.


The company's largest guru shareholder is Hotchkis & Wiley with 3.34% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.42%, Robert Olstein (Trades, Portfolio) with 0.19% and Joel Greenblatt (Trades, Portfolio) with 0.18%.


Diamond Hill trimmed 36.45% off its Loews Corp. (L) holding, impacting the portfolio by -0.53%.

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The company has a market cap of $15.32 billion and an enterprise value of $24.72 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 3.92% and return on assets of 0.92% are underperforming 60% of companies in the Insurance - Property and Casualty industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 2.82.

The company's largest guru shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.48% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 1.37% and Diamond Hill with 1.11%.

The Discover Financial Services (DFS) stake was reduced 19.93%, impacting the portfolio by -0.45%.

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The company, which provides credit cards and loans to its customers, has a market cap of $26.36 billion and an enterprise value of $40.85 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 24.91% is outperforming the sector, the return on assets of 2.64% is underperforming 51% of companies in the Credit Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.82 is below the industry median of 8.43.


The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.92% of outstanding shares, followed by Hotchkis & Wiley with 1.51% and Pioneer Investments (Trades, Portfolio) with 0.84%.

The firm curbed its Brighthouse Financial Inc. (BHF) stake by 45.78% , impacting the portfolio by -0.39%.

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The supplier of annuity products and life insurance has a market cap of $4.87 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of 6.28% and return on assets of 0.40% are underperforming 93% of companies in the Insurance - Life industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.05 is below the industry median of 7.42.

The company's largest guru shareholder is Dodge & Cox with 8.41% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 2.82%.

Diamond Hill exited its position in the iShares Russell 1000 Value (IWD) exchange-traded fund, impacting the portfolio by -0.39%.

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The firm trimmed its Apple Inc. (AAPL) position by 28.12%, impacting the portfolio by -0.39%.

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The tech company has a market cap of $969.93 billion and an enterprise value of $998.23 billion.


GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -48.95% and return on assets of 15.95% are outperforming 94% of companies in the Consumer Electronics industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.75 is below the industry median of 1.26.


The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 5.29% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.28%, Pioneer Investments with 0.21% and Spiros Segalas (Trades, Portfolio) with 0.10%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.