Avalon Investment & Advisory recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Avalon Advisors, LLC is an investment management firm based out of Houston, Texas. The company was originally established in 2001 by a group of founding partners of whom Willie Thurman Langston and Henry James Lartigue are acting as the CEO and Chairman, respectively. Avalon Advisors has grown from its inception to now operate with 52 total employees of which 34 are investment professionals. The company conducts its research internally, investing in the public equity and fixed income markets within the United States. Avalon Advisors utilizes a global approach, focusing on “securities with attractive fundamentals, solid financials and supportive macro factors, selling at reasonable valuations.” The company invests with a highly diversified approach, allocating its assets most highly in the information technology and finance sectors, each of which, despite being its highest allocated sectors, making up less than a sixth of its total asset allocations. Avalon Advisors also invests in the consumer staples, health care, energy, consumer discretionary, industrials, and utilities and telecommunications sectors, among other sectors to a lesser degree, in order of decreasing allocations, among other sectors to a lesser degree. Avalon Advisors holds its allocations an average of just over 8 quarters, although the firm only holds its top 10 allocations for 2.5 quarters on average. The company, in the most recent quarter, has had a turnover rate of approximately 34%. Avalon Advisors manages over $4.9 billion in total assets under management spread across over 3,400 total accounts, all of which are discretionary accounts except for 645, which makes up $466 million of its managed assets. Both of the company’s total number of accounts and total assets under management have been increasing in recent years with the firm’s total number of accounts growing from under 1,500 five years ago to its current amount and its total assets under management increasing despite some volatility from under $3 billion back in 2010 to its current amount.
As of the latest 13F report, the guru’s equity portfolio contained 315 stocks valued at a total of $3.51Bil. The top holdings were LRCX(2.76%), CMI(2.70%), and CVX(2.61%).
According to GuruFocus data, these were Avalon Investment & Advisory’s top five trades of the quarter.
Gilead Sciences Inc
Avalon Investment & Advisory reduced their investment in NAS:GILD by 683,314 shares. The trade had a 1.3% impact on the equity portfolio. During the quarter, the stock traded for an average price of $79.19.
On 02/15/2023, Gilead Sciences Inc traded for a price of $85.68000000000001 per share and a market cap of $106.84Bil. The stock has returned 44.98% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Gilead Sciences Inc has a price-earnings ratio of 23.47, a price-book ratio of 5.07, a EV-to-Ebitda ratio of 15.46 and a price-sales ratio of 3.99.
The price-to-GF Value ratio is 1.18, earning the stock a GF Value rank of 3.
Twitter Inc
The guru sold out of their 868,203-share investment in NYSE:TWTR. Previously, the stock had a 1.18% weight in the equity portfolio. Shares traded for an average price of $50.72 during the quarter.
On 02/15/2023, Twitter Inc traded for a price of $53.7 per share and a market cap of $41.09Bil. The stock has returned -2.03% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Twitter Inc has a price-book ratio of 6.98, a EV-to-Ebitda ratio of 66.62 and a price-sales ratio of 8.22.
The price-to-GF Value ratio is 0.93, earning the stock a GF Value rank of 6.
Cummins Inc
During the quarter, Avalon Investment & Advisory bought 134,276 shares of NYSE:CMI for a total holding of 391,163. The trade had a 0.93% impact on the equity portfolio. During the quarter, the stock traded for an average price of $237.87.
On 02/15/2023, Cummins Inc traded for a price of $248.41 per share and a market cap of $35.10Bil. The stock has returned 15.95% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Cummins Inc has a price-earnings ratio of 16.44, a price-book ratio of 3.91, a price-earnings-to-growth (PEG) ratio of 5.30, a EV-to-Ebitda ratio of 11.36 and a price-sales ratio of 1.22.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 7.
CVS Health Corp
Avalon Investment & Advisory reduced their investment in NYSE:CVS by 229,865 shares. The trade had a 0.68% impact on the equity portfolio. During the quarter, the stock traded for an average price of $96.48999999999999.
On 02/15/2023, CVS Health Corp traded for a price of $88.52 per share and a market cap of $113.67Bil. The stock has returned -11.87% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, CVS Health Corp has a price-earnings ratio of 28.37, a price-book ratio of 1.62, a price-earnings-to-growth (PEG) ratio of 9.46, a EV-to-Ebitda ratio of 14.01 and a price-sales ratio of 0.37.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 6.
Alphabet Inc
During the quarter, Avalon Investment & Advisory bought 266,682 shares of NAS:GOOGL for a total holding of 807,786. The trade had a 0.67% impact on the equity portfolio. During the quarter, the stock traded for an average price of $95.03.
On 02/15/2023, Alphabet Inc traded for a price of $94.68000000000001 per share and a market cap of $1,214.18Bil. The stock has returned -30.14% over the past year.
GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Alphabet Inc has a price-earnings ratio of 20.80, a price-book ratio of 4.78, a price-earnings-to-growth (PEG) ratio of 0.82, a EV-to-Ebitda ratio of 12.90 and a price-sales ratio of 4.38.
The price-to-GF Value ratio is 0.66, earning the stock a GF Value rank of 8.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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