Many leading funds, including Fidelity Investments, Cohen & Steers, and T Rowe Price, filed forms 13-D and 13-G (and form 4) with the SEC in the last week, indicating that they had amended their ownership in U.S. traded public companies operating in the healthcare sector. The following are the most notable institutional trades, based on our analysis of those filings.
PMC Sierra Inc. (NASDAQ:PMCS): PMCS designs, develops, markets and supports high-performance internet infrastructure semiconductor networking solutions that enable the transportation and storage of large quantities of digital data. It sells its semiconductor devices in five market segments, including enterprise storage, fiber access, wireless access, metro transport and aggregation, and printer and enterprise networking.
On Friday, mega fund T Rowe Price Associates filed SEC Form SC 13G/A indicating that it holds 25.13 million or 10.8% of outstanding shares, an increase from the 20.99 million shares it held at the end of Q4. The purchase also making it the largest institutional holder of PMCS shares, ahead of Cadian Capital Management (22.88 million shares) and Fidelity Investments (18.52 million shares).
PMCS shares are up despite reporting a disappointing Q4 reported last month, in which it reported in-line earnings and missed analyst revenue estimates ($153 million v/s $155 million). Its strength is based mostly on a healthy book-to-bill ratio of 1.2 that portends a bottoming and strong recovery in 2012. PMCS shares currently trade at 11-12 forward P/E and 1.5 P/B compared to averages of 12.4 and 1.9 for its peers in the communications semiconductor group.
Alpha Natural Resources (ANR): ANR is engaged in the production, sale, and processing of coal from mines and preparation plants in VA, WV, KY and PA. On Monday, Fidelity Investments filed SEC Form SC 13G/A indicating that it holds 16.6 million or 7.5% of outstanding shares, a decrease from the 28.9 million shares it held at the end of Q4. ANR shares are currently near three-year lows, down almost 70% in the past year. However, even after fall, they continue to trade at a premium 27-28 forward P/E, and at 0.5 P/B, compared to averages of 10.7 and 2.0 for its peers in the coal mining group.
DCT Industrial Trust Inc. (NYSE:DCT): DCT is a publicly owned REIT that owns, acquires, develops and manages high-quality bulk distribution and light industrial properties in high volume distribution markets in the U.S. and Mexico. On Friday, New York-based asset manager Cohen & Steers, with $26.6 billion in 13-F assets at the end of Q4, filed SEC Form SC 13G/A indicating that it holds 11.50 million or 4.65% of outstanding shares, a decrease from the 27.07 million shares it held at the end of Q4, and thereby ceasing to be a 5% holder of the company's shares. DCT shares are currently in a bullish consolidation pattern at multi-year highs, and they trade at a current 14.6 P/E and 1.1 P/B compared to averages of 13.8 and 1.2 for its peers in the REIT equity trust group.
Other major institutional filings in the last week included:
- Consol Energy Inc. (NYSE:CNX), a producer of bituminous coal and coal-bed methane gas, primarily in the northern and central Appalachian and Illinois basins, in which Wellington Management filed SEC Form SC 13G indicating that it holds 22.81 million shares, an increase from the 21.81 million shares it held at the end of Q4, and also T Rowe Price filed SEC Form SC 13G indicating that it holds 24.46 million shares, an increase from the 17.27 million shares it held at the end of Q4;
- Liberty Property Trust (LRY), a publicly owned REIT that provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties in the U.S. and the U.K, in which Vanguard Group filed SEC Form SC 13G indicating that it holds 11.69 million or 10.03% of outstanding shares, an increase from the 11.21 million shares it held at the end of Q4;
- biotech company Avanir Pharmaceuticals (NASDAQ:AVNR) that develops therapeutic products for the treatment of central nervous systems disorders of high unmet medical need, in which Fidelity Investments filed SEC Form SC 13G/A indicating that it holds 13.61 million or 10.26% of outstanding shares, an increase from the 8.42 million shares it held at the end of Q4;
- medical products and devices company Baxter International Inc. (NYSE:BAX), in which Capital World Investors filed SEC Form SC 13G/A indicating that it holds 60.08 million or 10.7% of outstanding shares, an increase from the 48.2 million shares it held at the end of Q4;
- hotel and resort chain Hyatt Hotels Corp. (NYSE:H), in which New York-based asset manager Cohen & Steers filed SEC Form SC 13G/A indicating that it held 4.97 million shares, an increase from the 3.72 million shares it held at the end of Q4; and
- Matador Resources Co. (NYSE:MTDR), an independent energy company, engaged in the acquisition, exploration, development and production of oil and natural gas resources, with a primary focus on oil and natural gas shale plays and other unconventional resources in the United States, primarily in LA and TX, in which Wellington Management filed SEC Form SC 13G indicating that it holds 6.16 million or 11.3% of outstanding shares.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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