James Barrow Acquires Nearly 13 Million Shares of United Technologies

Guru adds to stakes in Air Products & Chemicals and Whirlpool, trims stakes in Target and Microsoft

Nov 24, 2015

Guru James Barrow (Trades, Portfolio) is executive director for Dallas’ Barrow, Hanley, Mewhinney & Strauss and lead portfolio manager for Vanguard Windsor II and Selected Value Funds, which registered returns exceeding 42% in 2013. His third-quarter transactions tend to reflect Barrow, Hanley, Mewhinney & Strauss’ definition of value: Below-market price-to-earnings ratios, below-market price-to-book ratios and above-market dividend yields, regardless of market conditions.

Barrow’s most noteworthy third-quarter transaction was his purchase of a 12,751,758-share stake in United Technologies Corp. (UTX, Financial), a Hartford, Conn.-based conglomerate, for an average price of $97.82 per share. The deal had a 1.74% impact on Barrow’s portfolio.

United Technologies has a market cap of $86.41 billion and an enterprise value of $105.13 billion. It has a P/E of 15.1, a forward P/E of 14.7, a P/B of 2.8 and a P/S of 1.4. GuruFocus has given United Technologies a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

United Technologies sold for $97.39 per share Tuesday.

Barrow increased his stake in Air Products & Chemicals Inc. (APD, Financial), an Allentown, Pa.-based chemicals company, by more than 381,000% with the purchase of 7,623,429 shares for an average price of $137.55 per share. The acquisition had a 1.5% impact on Barrow’s portfolio.

Air Products & Chemicals has a market cap of $30.05 billion and an enterprise value of $35.85 billion. It has a P/E of 29.2, a forward P/E of 19.1, a P/B of 4.1 and a P/S of 3.0. GuruFocus has given Air Products & Chemicals a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

On Tuesday Air Products & Chemicals sold for $139.86 per share.

Barrow also added to his existing stake in Whirlpool Corp. (WHR, Financial), a Benton Charter Township, Mich.-based household appliances company. Barrow purchased 1,720,641 shares for an average price of $169.22 per share. The deal increased his stake by more than 309% and had a 0.39% impact on his portfolio.

Whirlpool has a market cap of $12.9 billion and an enterprise value of $17.94 billion. It has a P/E of 19.3, a forward P/E of 11.3, a P/B of 2.7 and a P/S of 0.6. GuruFocus has given Whirlpool a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.

Whirlpool sold for $165.25 per share Tuesday.

Barrow reduced his stake in Emerson Electric Co. (EMR, Financial), a Ferguson, Mo.-based electrical equipment company, by nearly 77%. Barrow sold 13,331,691 shares for an average price of $49.17 per share. The transaction had a -1.01% impact on his portfolio.

Emerson Electric has a market cap of $32.76 billion and an enterprise value of $36.6 billion. It has a P/E of 12.6, a forward P/E of 16, a P/B of 4.1 and a P/S of 1.5. GuruFocus has given Emerson Electric a Financial Strength rating of 9/10 and a Profitability and Growth rating of 6/10.

On Tuesday Emerson Electric sold for $50.08 per share.

Barrow trimmed his stake in Target Corp. (TGT, Financial), a Minneapolis-based discount retailer, by nearly 35%, selling 7,408,852 shares for an average price of $79.81 per share. The deal had a -0.82% impact on Barrow’s portfolio.

Target has a market cap of $45.94 billion and an enterprise value of $55.93 billion. It has a forward P/E of 15.4, a P/B of 3.4 and a P/S of 0.6. GuruFocus has given Target a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.

Target sold for $73.11 per share Tuesday.

Barrow reduced his stake in Microsoft Corp. (MSFT, Financial), a Redmond, Wash.-based technology company, by more than 21%. Barrow sold 8,394,983 shares for an average price of $44.9 per share. The transaction had a -0.5% impact on Barrow’s portfolio.

Microsoft has a market cap of $433.1 billion and an enterprise value of $372.32 billion. It has a P/E of 36.3, a forward P/E of 19, a P/B of 5.6 and a P/S of 4.9. GuruFocus has given Microsoft a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

On Tuesday Microsoft sold for $54.28 per shre.

Barrow sold his 4,568,020-share stake in Diageo PLC (DEO, Financial), a London-based alcoholic beverages company, for an average price of $111.08 per share. The deal had a -0.72% impact on Barrow’s portfolio.

Diageo has a market cap of $72.34 billion and an enterprise value of $96.05 billion. It has a P/E of 20.1, a forward P/E of 20.9, a P/B of 6.8 and a P/S of 4.4. GuruFocus has given Diageo a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.

Diageo sold for $115.18 per share Tuesday.

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