Credit: Shutterstock photoMason Hawkins ( Trades , Portfolio ) Southeastern Asset Management disclosed Dec. 11 that it divested 70% of its stake in Deltic Timber Corp. ( DEL ) on Nov. 30.
The firm sold 1,293,859 shares at $91.59 per share, trimming its position to just 533,699 shares. With this transaction, Southeastern pared 1.4% of its portfolio.
Company background
The Arkansas-based company engages in the growing and harvesting of timber and the manufacturing and marketing of lumber. Deltic said third-quarter net earnings increased $1 million from the prior-year quarter primarily due to higher operating incomes across the company's Woodlands and Real Estate segments. Woodlands reported a $1.3 million increase in operating income primarily due to higher timber sales volumes. Likewise, Real Estate reported a $1.2 million increase in operating income primarily due to higher residential unit sales.
GuruFocus ranks Deltic's profitability 8 out of 10 as the company's operating margin, Greenblatt return on capital and three-year CAGR of sales outperform approximately 70% of global competitors. Although the company offers good growth potential, Deltic's share price and price-book ratio are near a 10-year high, suggesting moderate overvaluation. Additionally, the company's price-sales ratio and dividend yield both rank lower than 92% of global competitors.
Firm also disclosed LVLT sale
Southeastern also disclosed that it divested its entire stake in Level 3 Communications Inc. (NYSE:LVLT). On Oct. 30, CenturyLink Inc. ( CTL ) announced in a press release that the Federal Communications Commission approved its merger with Level 3, completing the required regulatory approvals needed to close the transaction. The merger closed Nov. 1 according to a press release from Level 3.
Disclosure: I do not have positions in the stocks mentioned.
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
