Vulcan Value Partners Talks Oracle (ORCL)’s Value, Plus New Positions in McKesson (MCK), Qorvo (QRVO), More

Qorvo Inc (NASDAQ:QRVO)

– Shares Owned by Vulcan Value Partners (as of September 30): 4.80 million

– Value of Vulcan Value Partners’ Holding (as of September 30): $267.62 million

Vulcan Value Partners added Qorvo Inc (NASDAQ:QRVO) to its portfolio in Q3, acquiring 4.80 million shares worth $267.62 million on September 30. The company reported revenue of $863.7 million for the second quarter of its fiscal 2017, topping estimates by $28.93 million, while EPS of $1.29 was $0.12 below estimates. Qorvo’s gross margins also fell to 42.8% from 48.2% in the previous quarter. The impact on gross margin was attributed to a fall in manufacturing productivity. Vulcan Value sees Qorvo as fulfilling a vital role in cell phone production with its RF and other chips, which it believes only a few companies can produce on the scale of Qorvo.

UnitedHealth Group Inc. (NYSE:UNH)

– Shares Owned by Vulcan Value Partners (as of September 30): 929,431

– Value of Vulcan Value Partners’ Holding (as of September 30): $130.12 million

UnitedHealth Group Inc. (NYSE:UNH) is another stock in which Vulcan Value Partners created a new position in during the third quarter. The fund bought 929,431 shares of the company worth $130.12 million at the end of the quarter. Vulcan Value Partners believes that the market undervalues Optum, a healthcare information services company owned by UnitedHealth. Novocure Ltd (NASDAQ:NVCR) recently announced that United Healthcare will cover Optune as an adjunctive therapy for glioblastoma (GBM) treatment. United Healthcare, the largest health insurer in the U.S, provides medical benefit plans to over 44.7 million individuals.

 – Related Reading: 10 Countries With Lowest Healthcare Costs.

Dover Corp (NYSE:DOV)

Vulcan Value Partners sold off its entire stake in Dover Corp (NYSE:DOV) during the third quarter. The position had consisted of 1.30 million shares valued at $90.01 million on June 30. Vulcan felt the company no longer offered the margin of safety that it demands from positions after the stock gained 18% this year. The company reported third-quarter revenue of $1.71 billion, which was in-line with analysts’ estimates, while EPS of $0.83 missed estimates of $1.02. Dover Corp (NYSE:DOV) expects full year EPS of between $3.00 and $3.05, while anticipating that revenue will decline by 7-8%.

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