April 21, 2024

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PRIMECAP Management Cuts Tesla – GuruFocus.com


PRIMECAP Management
(Trades, Portfolio) sold shares of the following stocks during the first quarter of 2021, which ended on March 31.

Tesla

The guru curbed the position in Tesla Inc. (TSLA) by 15.83{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, impacting the portfolio by -0.41{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

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The vertically integrated EV and sustainable energy company has a market cap of $584.20 billion and an enterprise value of $580.20 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 6.92{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} return on assets of 2.46{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are outperforming 54{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the vehicles and parts industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 1.37.

The largest guru shareholder of the company is
Baillie Gifford
(Trades, Portfolio) with 1.68{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares, followed by
Ron Baron
(Trades, Portfolio) with 0.64{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and
Catherine Wood
(Trades, Portfolio) with 0.60{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

Adobe

The guru’s Adobe Inc. (ADBE) position was reduced by 10.48{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, impacting the portfolio by -0.34{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

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The company, which operates digital media content creation, digital experience for marketing solutions and publishing for legacy products, has a market cap of $237.96 billion and an enterprise value of $237.71 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 46.48{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} return on assets of 24.31{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are outperforming 96{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the software industry. Its financial strength is rated 7 out of 10 with a cash-debt ratio of 1.05.

Other notable guru shareholders of the company include
Ken Fisher
(Trades, Portfolio) with 1.25{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares,
Spiros Segalas
(Trades, Portfolio) with 0.56{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and
Steve Mandel
(Trades, Portfolio) with 0.55{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

Texas Instruments

The firm trimmed its position in Texas Instruments Inc. (TXN) by 11.52{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}. The trade had an impact of -0.33{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} on the portfolio.

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The company, which primarily makes analog chips, has a market cap of $174.26 billion and an enterprise value of $173.82 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 71.77{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and return on assets of 33.58{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are outperforming 98{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the semiconductors industry. Its financial strength is rated 7 out of 10 with a cash-debt ratio of 1.07.

Other notable guru shareholders of the company include
First Eagle Investment
(Trades, Portfolio) with 0.39{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares,
Chris Davis
(Trades, Portfolio) with 0.36{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and
Pioneer Investments
(Trades, Portfolio) with 0.32{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

NVIDIA

The guru trimmed the position in NVIDIA Corp. (NVDA) by 36.8{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, impacting the portfolio by -0.29{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

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The company, which designs graphics processing units, has a market cap of $388.67 billion and an enterprise value of $384.82 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 30.32{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and return on assets of 17.84{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are outperforming 93{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the semiconductors industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.5 is below the industry median of 2.

The largest guru shareholders of the company include Gifford 0.87{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares and Segalas with 0.36{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

Qualcomm

The firm reduced its position in Qualcomm Inc. (QCOM) by 19.93{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, impacting the portfolio by -0.26{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

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The company, which develops and licenses wireless technology, has a market cap of $149.92 billion and an enterprise value of $154.13 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 147.29{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and return on assets of 22.98{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are outperforming 95{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.73 is below the industry median of 2.

The largest guru shareholders of the company include
PRIMECAP Management
(Trades, Portfolio) with 0.82{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares,
Pioneer Investments
(Trades, Portfolio) with 0.63{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, the
T Rowe Price Equity Income Fund
(Trades, Portfolio) with 0.29{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and
Jim Simons
(Trades, Portfolio)’ Renaissance Technologies with 0.20{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

Southwest Airlines

The guru trimmed the position in Southwest Airlines Co. (LUV) by 9.56{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}, impacting the portfolio by -0.22{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9}.

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The U.S. domestic carrier has a market cap of $35.88 billion and an enterprise value of $34.32 billion.

GuruFocus gives the company a profitability rating of 6 out of 10. The return on equity of -30.03{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and return on assets of -8.52{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} are underperforming 88{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of companies in the transportation industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.12 is above the industry median of 0.34.

Other notable guru shareholders of the company include
Pioneer Investments
(Trades, Portfolio) with 0.12{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of outstanding shares, Simons’ firm with 0.10{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} and the
T Rowe Price Equity Income Fund
(Trades, Portfolio) with 0.09{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9},

Disclosure: I do not own any stocks mentioned.

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