FMR LLC Reduces Stake in Tempur Sealy International Inc
On July 31, 2023, FMR LLC, a renowned investment firm, reduced its stake in Tempur Sealy International Inc (NYSE:TPX), a leading bedding provider. This article will delve into the details of the transaction, provide an overview of both FMR LLC and Tempur Sealy International Inc, and analyze the implications of this move for value investors.
Details of the Transaction
FMR LLC sold 7,192,715 shares of Tempur Sealy International Inc on July 31, 2023, at a trade price of $44.63 per share. This move resulted in a 35.62% reduction in FMR LLC's holdings in the company, leaving the firm with a total of 12,998,283 shares. The transaction had a minor impact of -0.03% on FMR LLC's portfolio, and the firm now holds a 7.55% stake in Tempur Sealy International Inc.
Profile of FMR LLC
FMR LLC, also known as Fidelity, was founded in 1946 by Edward C. Johnson II. The firm has a rich history of taking risks and investing in stocks with growth potential. Fidelity's investment philosophy is centered on promoting trailblazing individuals and basing its growth on constant innovation and research. As of the date of this article, Fidelity holds 5049 stocks, with a total equity of $1,090.64 trillion. The firm's top holdings include Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), and NVIDIA Corp (NASDAQ:NVDA). The technology and healthcare sectors dominate Fidelity's portfolio.
Profile of Tempur Sealy International Inc
Tempur Sealy International Inc, listed under the symbol TPX, is one of the world's largest bedding providers. The company, which went public on December 18, 2003, develops and distributes bedding products globally. Tempur Sealy International Inc has a market capitalization of $7.85 billion and a current stock price of $45.62. The company's financial performance has been impressive, with a PE ratio of 19.66. The company's GF Score is 88/100, indicating good outperformance potential.
Analysis of Tempur Sealy International Inc's Stock
Since its IPO, Tempur Sealy International Inc's stock has seen a significant increase of 1203.43%. The company's GF Value Rank is 3/10, indicating that the stock is fairly valued. The company's Profitability Rank is 9/10, and its Growth Rank is 10/10, suggesting strong profitability and growth potential. However, the company's Financial Strength is ranked 4/10, indicating room for improvement.
Comparison with the Largest Guru
The largest guru holding shares in Tempur Sealy International Inc is Gotham Asset Management, LLC. A comparison between FMR LLC and Gotham Asset Management, LLC's positions in Tempur Sealy International Inc will be provided in a future update, as the data is currently not available.
Conclusion
In conclusion, FMR LLC's recent reduction in its stake in Tempur Sealy International Inc is a significant move that value investors should monitor closely. Despite the reduction, FMR LLC still holds a substantial stake in the company. Tempur Sealy International Inc's strong profitability and growth potential, coupled with its fair valuation, make it a stock to watch. However, investors should also consider the company's financial strength and the implications of FMR LLC's transaction on its portfolio.
This article first appeared on GuruFocus.
