Capital Research Global Investors (Trades, Portfolio), a renowned investment firm, recently expanded its portfolio with the acquisition of a substantial stake in Carrier Global Corp. (CARR, Financial). This article provides an in-depth analysis of the transaction, the profiles of the firm and the traded company, and the potential implications for value investors.
Details of the Transaction
On July 31, 2023, Capital Research Global Investors (Trades, Portfolio) added 9,041,540 shares of Carrier Global Corp to its portfolio. The transaction, executed at a price of $59.55 per share, increased the firm's total holdings in the company to 86,117,309 shares. This acquisition represents 1.46% of the guru's portfolio and 10.30% of Carrier Global Corp's total shares. The transaction had a 0.15% impact on the guru's portfolio.
Profile of the Firm
Capital Research Global Investors (Trades, Portfolio), based in Los Angeles, CA, is a leading investment firm with a diverse portfolio of 423 stocks. The firm's top holdings include Amazon.com Inc (AMZN, Financial), Broadcom Inc (AVGO, Financial), Microsoft Corp (MSFT, Financial), Abbott Laboratories (ABT, Financial), and General Electric Co (GE, Financial). With an equity of $350.26 billion, the firm primarily invests in the Technology and Healthcare sectors.
Overview of the Traded Stock
Carrier Global Corp (CARR, Financial), a US-based company, specializes in the manufacture of heating, ventilation, air conditioning, refrigeration, and fire and security products. The company, which went public on March 18, 2020, has a market capitalization of $46.4 billion. As of August 11, 2023, the company's stock price stands at $55.4, with a PE percentage of 21.98. According to GuruFocus, the stock is modestly overvalued, with a GF Value of 46.69 and a Price to GF Value ratio of 1.19.
Performance of the Traded Stock
Since the transaction, the stock has experienced a 6.97% decrease in price. However, since its IPO, the stock has seen a remarkable gain of 361.67%. The stock's year-to-date price change ratio stands at 33.14%. With a GF Score of 72/100, the stock has average outperformance potential.
Financial Health of the Traded Stock
Carrier Global Corp has a Financial Strength rank of 6/10, a Profitability Rank of 6/10, and a Growth Rank of 4/10. The company's interest coverage is 7.93, and its Altman Z score is 3.33. The company's Piotroski F-Score is 5, indicating a stable financial situation.
Other Gurus' Investment in the Traded Stock
Other notable gurus who hold shares in Carrier Global Corp include Ken Fisher (Trades, Portfolio), Chris Davis (Trades, Portfolio), and Tom Gayner (Trades, Portfolio). The largest guru holder of the stock is Dodge & Cox.
Conclusion
In conclusion, Capital Research Global Investors (Trades, Portfolio)' recent acquisition of Carrier Global Corp shares represents a significant addition to its portfolio. The transaction's impact on the guru's portfolio and the traded stock's performance will be closely watched by value investors. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
