T Rowe Price Equity Income Fun
T Rowe Price Equity Income Fund (Trades, Portfolio), part of Baltimore-based T. Rowe Price Group Inc. (TROW, Financial), disclosed in a 13F filing that its top five trades during the first quarter included boosts to its holdings in TC Energy Corp. (TRP, Financial) and Hess Corp. (HES, Financial) and reductions to its positions in Tyson Foods Inc. (TSN, Financial), Wells Fargo & Co. (WFC, Financial) and Fifth Third Bancorp (FITB, Financial).
Managed by John Linehan, the fund seeks long-term capital appreciation by investing in the stock of undervalued companies that have the potential to pay above-average dividends.
As of March, the fund’s $19.02 billion 13F equity portfolio contains 112 stocks with a quarterly turnover ratio of 4%. Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
The fund’s top three sectors in terms of weight are financial services, health care and industrials, representing 21.93%, 18.24% and 10.78% of the equity portfolio.
TC Energy
The fund added 1.29 million shares of TC Energy (TRP, Financial), boosting the position by 50% and its equity portfolio by 0.38%.
Shares of TC Energy averaged $52.58 during the first quarter; the stock is modestly overvalued based on Tuesday’s price-to-GF Value ratio of 1.19.
The Calgary, Alberta-based energy company has a GF Score of 81 out of 100, driven on a rank of 9 out of 10 for profitability and momentum despite ranks of 6 out of 10 or below for GF Value, growth and financial strength.
Other gurus with holdings in TC Energy include Dodge & Cox and
Paul Tudor Jones (Trades, Portfolio)’ Tudor Investment.
Hess
The fund added 650,000 shares of Hess (HES, Financial), expanding the position by 361.11% and its equity portfolio by 0.37%.
Shares of Hess averaged $94.78 during the first quarter; the stock is significantly overvalued based on Tuesday’s price-to-GF Value ratio of 1.48.
The New York-based energy company has a GF Score of 70 out of 100: Although the stock’s momentum ranks 9 out of 10, Hess has ranks below 6 out of 10 for financial strength, profitability, growth and GF Value.
Tyson Foods
The fund sold 1.155 million shares of Tyson Foods (TSN, Financial), slicing 27.11% of the position and 0.53% of its equity portfolio.
Shares of Tyson Foods averaged $91.24 during the first quarter; the stock is modestly overvalued based on Tuesday’s price-to-GF Value ratio of 1.11.
The Springdale, Arkansas-based meat processing company has a GF Score of 95 out of 100, driven by a rank of 9 out of 10 or higher for profitability, growth and momentum, despite ranks between 6 and 7 out of 10 for financial strength and GF Value.
Wells Fargo
The fund sold 2.02 million shares of Wells Fargo (WFC, Financial), trimming 12.93% of the position and 0.51% of its equity portfolio.
Shares of Wells Fargo averaged $53.63 during the first quarter; the stock is fairly valued based on Tuesday’s price-to-GF Value ratio of approximately 1.
The San Francisco-based bank has a GF Score of 79 out of 100, driven by a momentum rank of 9 out of 10 and ranks between 6 and 7 out of 10 for profitability, growth and GF Value despite financial strength ranking just 3 out of 10.
Fifth Third Bancorp
The fund sold 2.18 million shares of Fifth Third Bancorp (FITB, Financial), chopping 28.57% of the position and 0.50% of its equity portfolio.
Shares of Fifth Third Bancorp averaged $46.76 during the first quarter; the stock is modestly overvalued based on Tuesday’s price-to-GF Value ratio of 1.21.
The Cincinnati-based bank has a GF Score of 84 out of 100, driven by a rank of 9 out of 10 for growth and momentum, a profitability rank of 7 out of 10, a GF Value rank of 5 out of 10 and a financial strength rank of 3 out of 10.
