Steven Cohen Invests in Netflix and ConocoPhillips

Guru reduces positions in Nike and Advance Auto Parts

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May 30, 2016
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Steven Cohen (Trades, Portfolio)’s top two transactions of the first quarter were acquisitions of stakes that are new to his portfolio – Netflix Inc. (NFLX, Financial) and ConocoPhillips (COP, Financial). The stakes aren’t entirely new, but Cohen hadn’t had shares in either one in his portfolio for more than a year.

The numbers suggest the shares were overvalued.

Cohen purchased a 1,821,100-share stake in Netflix, a Los Gatos, California-based provider of streaming movies and television programming, for an average price of $98.34 per share. The transaction had a 1.43% impact on Cohen’s portfolio.

The stake is 0.43% of Netflix’s outstanding shares and 1.43% of Cohen’s total assets. Netflix’s leading shareholder among the gurus is Chase Coleman (Trades, Portfolio) with a stake of 17,997,273 shares. The stake is 4.2% of Netflix’s outstanding shares and 26.53% of the guru’s total assets.

Netflix has a P/E of 356.2, a forward P/E of 135.1, a P/B of 19.1 and a P/S of 6.3. GuruFocus gives Netflix a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10.

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Netflix sold for $103.3 per share Friday. The DCF Calculator gives Netflix a fair value of $4.87.

The guru acquired a 4,309,925-share stake in ConocoPhillips, an oil and gas company based in Houston, for an average price of $38.1 per share. The purchase had a 1.33% impact on Cohen’s portfolio.

The stake is 0.35% of ConocoPhillips’ outstanding shares and 1.33% of Cohen’s total assets. Barrow, Hanley, Mewhinney & Strauss is ConocoPhillips’ leading shareholder among the gurus with a stake of 28,662,369 shares. The stake is 2.31% of ConocoPhillips’ outstanding shares and 1.76% of the guru’s total assets.

ConocoPhillips has a forward P/E of 107.5, a P/B of 1.4 and a P/S of 2. GuruFocus gives ConocoPhillips a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10.

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ConocoPhillips sold for $44.33 per share Friday. The DCF Calculator gives ConocoPhillips a fair value of $-53.19.

Cohen also purchased an 840,500-share stake in Monster Beverage Corp. (MNST, Financial), a Corona, California-based beverage company, for an average price of $133.81 per share. The deal had a 0.86% impact on Cohen’s portfolio.

The stake is 0.41% of Monster’s outstanding shares and 0.86% of Cohen’s total assets. Spiros Segalas (Trades, Portfolio) is Monster’s leading shareholder among the gurus with a stake of 1,755,087 shares. The stake is 0.86% of Monster’s outstanding shares and 0.96% of Segalas’ total assets.

Monster has a P/E of 42.3, a forward P/E of 31.7, a P/B of 6.1 and a P/S of 10.7. GuruFocus gives Monster a Financial Strength rating of 9/10 with no debt and a Profitability and Growth rating of 9/10.

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Monster sold for $150.51 per share Friday. The DCF Calculator gives Monster a fair value of $101.35.

Cohen trimmed his stake in Nike Inc. (NKE, Financial), a Washington County, Oregon-based supplier of athletic shoes and apparel, by more than 94%. Cohen sold 2,476,200 shares for an average price of $60.31 per share. The transaction had a -1.28% impact on Cohen’s portfolio.

The remaining stake of 153,400 shares is 0.01% of Nike’s outstanding shares and 0.07% of Cohen’s total assets. Segalas is Nike’s leading shareholder among the gurus with a stake of 12,318,258 shares. The stake is 0.73% of Nike’s outstanding shares and 3.1% of Segalas’ total assets.

Nike has a P/E of 26, a forward P/E of 22.9, a P/B of 7.7 and a P/S of 3.1. GuruFocus gives Nike a Financial Strength rating of 9/10 and a Profitability and Growth rating of 8/10.

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Nike sold for $56.19 per share Friday. The DCF Calculator gives Nike a fair value of $34.9.

Cohen pared his stake in Advance Auto Parts Inc. (AAP, Financial), an auto parts retailer based in Roanoke, Virginia, by more than 62% with the sale of 906,600 shares for an average price of $150.13 per share. The deal had a -1.13% impact on Cohen’s portfolio.

The remaining stake of 548,100 shares is 0.75% of Advance Auto Parts’ outstanding shares and 0.67% of Cohen’s total assets. Chris Davis (Trades, Portfolio) is now Advance Auto Parts’ leading shareholder among the gurus with a stake of 720,509 shares. The stake is 0.98% of Advance Auto Parts’ outstanding shares and 0.51% of Davis’ total assets.

Advance Auto Parts has a P/E of 23.9, a forward P/E of 17.2, a P/B of 4.4 and a P/S of 1.2. GuruFocus gives Advance Auto Parts a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

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Advance Auto Parts sold for $156.31 per share Friday. The DCF Calculator gives Advance Auto Parts a fair value of $134.02.

The guru reduced his stake in Signet Jewelers Ltd. (SIG, Financial), a jewelry retailer headquartered in Akron, Ohio, by more than 68%. Cohen sold 916,200 shares for an average price of $113.79 per share. The transaction had a -0.93% impact on Cohen’s portfolio.

The remaining stake of 417,900 is 0.53% of Signet’s outstanding shares and 0.4% of Cohen’s total assets. Signet’s leading shareholder among the gurus is Alan Fournier (Trades, Portfolio) with a stake of 1,867,627 shares. The stake is 2.38% of Signet’s outstanding shares and 6.61% of Fournier’s total assets.

Signet has a P/E of 15.9, a forward P/E of 11.8, a P/B of 2.5 and a P/S of 1.2. GuruFocus gives Signet a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10.

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Signet sold for $99.58 per share Friday. The DCF Calculator gives Signet a fair value of $66.99.

Cohen hiked his stake in Lowe’s Companies Inc. (LOW, Financial), a Mooresville, North Carolina-based home improvement store chain, by nearly 508%. Cohen purchased 1,733,000 shares for an average price of $70.53 per share. The deal had a 1.01% impact on Cohen’s portfolio.

The stake, now 2,074,200 shares, is 0.23% of Lowe’s outstanding shares and 1.21% of Cohen’s total assets. Daniel Loeb (Trades, Portfolio) is Lowe’s leading shareholder among the gurus with a stake of 3 million shares. The stake is 0.33% of Lowe’s outstanding shares and 2.09% of Loeb’s total assets.

Lowe’s has a P/E of 26.9, a forward P/E of 20, a P/B of 10 and a P/S of 1.3. GuruFocus gives Lowe’s a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

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Lowe’s sold for $80.35 per share Friday. The DCF Calculator gives Lowe’s a fair value of $32.

Cohen raised his stake in Anadarko Petroleum Corp. (APC, Financial), a petroleum company based in The Woodlands, Texas, by nearly 1,441%, acquiring 2,674,158 shares for an average price of $40.53 per share. The transaction had a 0.95% impact on Cohen’s portfolio.

The stake, now 2,859,774 shares, is 0.56% of Anadarko’s outstanding shares and 1.02% of Cohen’s total assets. Bill Nygren (Trades, Portfolio) is Anadarko’s leading shareholder among the gurus with a stake of 5.1 million shares. The stake is 1% of Anadarko’s outstanding shares and 1.6% of Nygren’s total assets.

Anadarko has a P/B of 2.3 and a P/S of 3.3. GuruFocus gives Anadarko a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10.

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Anadarko sold for $51.53 per share Friday. The DCF Calculator gives Anadarko a fair value of $-93.85.

Cohen hiked his stake in Facebook Inc. (FB, Financial), a social networking service headquartered in Menlo Park, California, by more than 81%. Cohen bought 1,038,010 shares for an average price of $105.28 per share. The deal had a 0.91% impact on Cohen’s portfolio.

The stake, now 2,318,900 shares, is 0.08% of Facebook’s outstanding shares and 2.03% of Cohen’s total assets. Frank Sands (Trades, Portfolio) is Facebook’s leading shareholder among the gurus with a stake of 24,104,624 shares. The stake is 0.84% of Facebook’s outstanding shares and 8.12% of Sands’ total assets.

Facebook has a P/E of 73.7, a forward P/E of 28.3, a P/B of 7.2 and a P/S of 17.3. GuruFocus gives Facebook a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

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Facebook sold for $119.38 per share Friday. The DCF Calculator gives Facebook a fair value of $17.34.

Cohen raised his stake in Newell Brands Inc. (NWL, Financial), an Atlanta-based consumer goods company, by nearly 436% with the purchase of 2,662,369 shares for an average price of $39.19 per share. The transaction had a 0.9% impact on Cohen’s portfolio.

The stake, now 3,273,669 shares, is 1.22% of Newell Brands’ outstanding shares and 1.11% of Cohen’s total assets. Newell Brands’ leading shareholder among the gurus is Lee Ainslie (Trades, Portfolio) with a stake of 5,399,103 shares. The stake is 2.01% of Newell Brands’ outstanding shares and 3.78% of Ainslie’s total assets.

Newell Brands has a P/E of 38.2, a forward P/E of 16.1, a P/B of 7.2 and a P/S of 2.2. GuruFocus gives Newell Brands a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10.

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Newell Brands sold for $47.76 per share Friday. The DCF Calculator gives Newell Brands a fair value of $9.52.

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