As stated by a Form 4 filing, Glenn Krevlin’s Glenhill Advisors LLC purchased 307,367 shares of Lionbridge Technologies Inc. (NASDAQ:LIOX) last week at a weighted average cost of $4.19, enlarging its overall holding to 6.86 million shares. The Insider Monkey team discussed the fund’s 13G filing on the company last week, which disclosed an ownership stake of 8.15 million shares. It is important to note that Glenhill reported sole voting power with respect to 6.55 million shares, shared voting power with respect to 1.60 million shares, and sole dispositive power with respect to 8.15 million shares. Hence, the fund’s economic exposure to Lionbridge Technologies Inc. (NASDAQ:LIOX) after disclosing the recent purchase totals 8.46 million shares.
The provider of globalization solutions generated $419.17 million in revenue for the nine months that ended September 30, compared to $370.93 million reported for the same period of the prior year. It should also be mentioned that Microsoft Corporation (NASDAQ:MSFT) has been a client of Lionbridge for more than a decade and contributed roughly 14% of the company’s third-quarter revenue, compared with 18% reported for the same period of the previous year. Hence, the company was able to achieve significant top-line growth despite experiencing lower revenue from Microsoft. Importantly, the stock trades at a very eye-catching forward P/E ratio of 9.72, which is substantially below the forward P/E of the S&P 500 benchmark. George McCabe’s Portolan Capital Management reported owning 1.65 million shares of Lionbridge Technologies Inc. (NASDAQ:LIOX) through its 13F for the September quarter.
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In a separate Form 4 filing, Berkshire Hathaway reported purchasing an additional 1.59 million shares of Phillips 66 (NYSE:PSX) last Wednesday, at prices that ranged from $77.54 per share to $78.93 per share. After yet another sizable purchase, Buffett’s holding company has 69.03 million shares of the oil refiner, which account for 12.94% of its outstanding stock. It seems that Phillips 66 (NYSE:PSX) has been wrongly punished by investors as a result of the falling crude oil prices, so the financial guru might have decided to make the most of this investment opportunity. Of course, the depressed crude oil prices put some weight on the company’s top-line results, but its bottom-line figure benefits from this outcome. Put differently, Phillips 66 is a buyer of oil, so it predominantly benefits from lower manufacturing costs. The crack spread, which measures the discrepancy between market prices for refined petroleum products and crude oil, has increased in the past several months, positively impacting the refiner’s profitability. At the same time, Phillips operates in four main segments, including midstream, chemicals, refining, and marketing and specialties, which is yet another likely reason to put money into the company’s stock. Most importantly, the stock trades at a forward P/E ratio of only 11.05, so there is growing evidence that Buffett’s move represents a safe investment. A total of 33 smart money investors from our database had stakes in the company at the end of the third quarter, amassing 16.30% of its shares. Steven Cohen’s Point72 Asset Management, one of the big winners in 2015 in the hedge fund industry, acquired a 290,000-share stake in Phillips 66 (NYSE:PSX) during the third quarter.
