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T Rowe Price Adds 7 Stocks to Portfolio

- By David Goodloe

T Rowe Price Equity Income Fund (Trades, Portfolio) added seven new holdings to its portfolio in the fourth quarter.


The fund's largest new purchase was a 2.3 million-share stake in Adient PLC (ADNT), an Ireland-based designer, manufacturer and marketer of vehicle seating systems, for an average price of $51.92 per share. The transaction had a 0.62% impact on the portfolio.

Chris Davis (Trades, Portfolio) is Adient's leading shareholder among the gurus with 7,495,216 shares. The stake is 8% of Adient's outstanding shares.

Adient has a forward price-earnings (P/E) ratio of 7.18.

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Adient sold for $66.48 per share at market close Friday. The DCF Calculator gives Adient a fair value of $17.95.

The fund invested in a 2.125 million-share stake in Equity Residential (EQR), a real estate investment trust (REIT) based in Chicago, for an average price of $61.42 per share. That deal also had a 0.62% impact on the portfolio.

The fund is Equity Residential's leading shareholder among the gurus.

Equity Residential has a P/E ratio of 5.36, a forward P/E ratio of 47.39, a price-book (P/B) ratio of 2.26 and a price-sales (P/S) ratio of 9.84. GuruFocus gives Equity Residential a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 40.43% and return on assets (ROA) of 19.93% that are higher than 98% of the companies in the Global REIT - Residential industry.

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Equity Residential sold for $62.78 per share Friday. The DCF Calculator gives Equity Residential a fair value of $124.78 with a 50% margin of safety.

The fund bought a 1.225 million-share stake in Southern Co. (SO), an Atlanta-based gas and electric utility holding company, for an average price of $49.13 per share. The transaction had a 0.28% impact on the fund's portfolio.

Jim Simons (Trades, Portfolio) is Southern's leading shareholder among the gurus with a stake of 1,576,300 shares. The stake is 0.16% of Southern's outstanding shares.

Southern has a P/E of 19.90, a forward P/E of 16.72, a P/B of 1.95 and a P/S of 2.42. GuruFocus gives Southern a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with ROE of 10.86% that is higher than 66% of the companies in the Global Utilities - Regulated Electric industry and ROA of 2.69% that is higher than 51% of the companies in that industry.

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Southern sold for $50.5 per share Friday. The DCF Calculator gives Southern a fair value of $27.08.

The fund invested in a 4.85 million-share stake in Ford Motor Co. (NYSE:F), an automaker based in the Detroit area, for an average price of $12.13 per share. The deal had a 0.27% impact on the portfolio.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with a stake of 43,609,392 shares. The stake is 1.1% of Ford's outstanding shares.

Ford has a P/E of 11.23, a forward P/E of 7.59, a P/B of 1.64 and a P/S of 0.34. GuruFocus gives Ford a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 15.02% that is higher than 72% of the companies in the Global Auto Manufacturers industry and ROA of 1.92% that is lower than 67% of the companies in that industry.

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Ford sold for $12.47 per share Friday. The DCF Calculator gives Ford a fair value of $12.2.

The fund bought 310,000 shares of The Hershey Co. (HSY), the Pennsylvania-based chocolate company, for an average price of $98.75 per share. The transaction had a 0.15% impact on the portfolio.

Pioneer Investments (Trades, Portfolio) is Hershey's leading shareholder among the gurus with a 3,834,779-share stake. The stake is 1.81% of Hershey's outstanding shares.

Hershey has a P/E of 32.52, a forward P/E of 22.88, a P/B of 29.62 and a P/S of 3.16. GuruFocus gives Hershey a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 84.94% that is higher than 98% of the companies in the Global Confectioners industry and ROA of 13.05% that is higher than 88% of the companies in that industry.

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Hershey sold for $108.9 per share Friday. The DCF Calculator gives Hershey a fair value of $48.15.

The fund purchased 375,000 shares of Tanga Resources Corp. (TRGP), a Houston-based provider of natural gas and natural gas liquids, for an average price of $50.52 per share. The deal had a 0.1% impact on the portfolio.

Steven Cohen (Trades, Portfolio) is Tanga Resources' leading shareholder among the gurus with 605,500 shares. The position is 0.31% of Tanga Resources' outstanding shares.

Tanga Resources has a forward P/E of 212.77, a P/B of 1.95 and a P/S of 1.22. GuruFocus gives Tanga Resources a Financial Strength rating of 6/10 and a Profitability and Growth rating of 2/10 with ROE of -6.14% that is lower than 76% of the companies in the Global Oil & Gas Midstream industry and ROA of -1.44% that is lower than 71% of the companies in that industry.

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Tanga Resources sold for $56.38 per share Friday. The DCF Calculator gives Tanga Resources a fair value of $-18.62.

The fund invested in 175,000 shares of Great Plains Energy Inc. (GXP), an electric utility holding company based in Kansas City, Missouri, for an average price of $27.33 per share. The transaction had a 0.02% impact on the portfolio.

HOTCHKIS & WILEY is Great Plains Energy's leading shareholder among the gurus with a stake of 1,611,617 shares. The stake is 0.75% of Great Plains Energy's outstanding shares.

Great Plains Energy has a P/E of 21.07, a forward P/E of 15.87, a P/B of 1.17 and a P/S of 1.68. GuruFocus gives Great Plains Energy a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of 5.79% that is lower than 65% of the companies in the Global Utilities - Regulated Electric industry and ROA of 1.98% that is lower than 63% of the companies in that industry.

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Great Plains Energy sold for $28.85 per share Friday. The DCF Calculator gives Great Plains Energy a fair value of $14.66.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.