Stocks Bought in Q3
Symantec Corporation (NASDAQ:SYMC)
– Shares Bought During Q3: 24.50 million
– Value of Holding (as of September 30): $521 million
– Q4 Return (through December 14): +1.36%
– Trailing P/E Ratio: 11.97
– Forward Dividend Yield: 1.39%
Starboard opened a huge new position in Symantec Corporation (NASDAQ:SYMC) in July and sought to shake up the company’s board by putting forth five nominees. In September, the two sides collaborated on a board refreshment plan that will see three of Starboard’s nominees gain seats, including Starboard managing member Peter Feld. However, while we’re big fans of Starboard, our analysis showed that the fund’s mid-cap picks like SYMC performed dreadfully between 2011 and 2017.
RPM International Inc. (NYSE:RPM)
– Shares Bought During Q3: 567,000
– Value of Holding (as of September 30): $77.62 million
– Q4 Return (through December 14): -6.93%
– Forward P/E Ratio: 16.38
– Forward Dividend Yield: 2.32%
Starboard made a big investment in RPM International Inc. (NYSE:RPM) last quarter, increasing the size of its holding by 90% after opening a small position in the coatings and sealants company during Q2. RPM increased its dividend by 9.4% in October, the 45th-straight year that it’s raised its annual dividend payouts.
Baxter International Inc. (NYSE:BAX)
– Shares Bought During Q3: 170,000
– Value of Holding (as of September 30): $56.08 million
– Q4 Return (through December 14): -14.77%
– Trailing P/E Ratio: 30.10
– Forward Dividend Yield: 1.16%
Starboard raised its Baxter International Inc. (NYSE:BAX) position by 30% during the third quarter. Baxter shares have gained over 60% since the middle of 2015, around the time Starboard first opened a position in the healthcare company.
Marvell Technology Group Ltd. (NASDAQ:MRVL)
– Shares Bought During Q3: 569,211
– Value of Holding (as of September 30): $662 million
– Q4 Return (through December 14): -20.31%
– Forward P/E Ratio: 10.53
– Forward Dividend Yield: 1.56%
Starboard made a small addition to its large Marvell Technology Group Ltd. (NASDAQ:MRVL) position in Q3 and has since added another 4.27 million shares in Q4 as Marvell shares have continued to slide. Jeffrey Smith pitched Marvell at the Capitalize for Kids investor conference in October, praising the company’s management team, its leading positions in every key market, and its big opportunity in 5G following its July acquisition of Cavium.
Stocks Sold in Q3
Macerich Company (NYSE:MAC)
– Shares Sold During Q3: 1.15 million
– Value of Holding (as of September 30): $0
– Q4 Return (through December 14): -13.60%
– Forward P/E Ratio: 62.04
– Forward Dividend Yield: 6.28%
Starboard Value closed three long positions during Q3, with the most valuable being its former stake in REIT Macerich Company (NYSE:MAC). Jeffrey Smith may have been considering a proxy contest against the mall operator which appears to have fizzled out in Q1 when Dan Loeb’s Third Point, a potential ally which had also sought a shakeup at the company, sold off its position. Starboard began liquidating its own stake in Q2 and sold out of the position completely a quarter later.
Disclosure: None
