Point72 Asset Management, the firm founded by Steven Cohen (Trades, Portfolio), disclosed in regulatory filings that it entered in May a new holding in Cutera Inc. (CUTR, Financial) according to GuruFocus Real-Time Picks, a Premium feature based on Schedule 13D, 13G and Form 4 filings. The firm also disclosed its first-quarter 13F equity portfolio update, revealing new buys in Walmart Inc. (WMT, Financial), Intel Corp. (INTC, Financial) and Nvidia Corp. (NVDA, Financial) as well as a position boost in McDonald’s Corp. (MCD, Financial).
Prior to founding Point72, Cohen received a B.S. in economics at The Wharton School at the University of Pennsylvania. The guru converted Point72 into a family office in 2014.
Point72 invests in long and short equity positions using a multi-manager platform and a sector-aligned model. The firm applies a bottom-up, fundamental research process to unlock macro investments and insights.
Real-time buy: Cutera
Point72 disclosed in a Schedule 13G filing that it purchased 1,088,100 shares of Cutera (CUTR, Financial), giving the position 0.06% equity portfolio weight. Shares averaged $16.17 on the May 15 transaction date.
Investors must be aware that the above transaction is not part of Point72’s first-quarter 13F equity portfolio, but a real-time pick that took place during the second quarter. Point72 purchased 5.48% of Cutera’s total shares outstanding and thus, U.S. Securities and Exchange Commission regulations require the firm to report this trade within 10 business days of the transaction.
The Brisbane, California-based company designs and develops laser and other energy-based aesthetics systems. GuruFocus’ GF Value Line labeled Cutera a possible value trap based on its low price-to-GF Value ratio of 0.39 as of Wednesday and poor ranks for financial strength, growth and momentum.
Cutera’s financial strength ranks 4 out of 10 on several warning signs, which include a low Piotroski F-score of 3 out of 9, a weak Altman Z-score of 0.61 and a cash-to-debt ratio that underperforms approximately 74% of global competitors.
The company’s growth ranks just 3 out of 10 on the back of three-year revenue growth rates underperforming approximately 66% of global competitors.
Based on the company’s low ranks for financial strength, profitability, GF Value, growth and momentum, GuruFocus assigned Cutera the GF Score of 55 out of 100.
Portfolio overview
As of March, Point72’s $31.93 billion 13F equity portfolio contains 2,146 stocks, with 891 new positions and a quarterly turnover ratio of 43%. The top four sectors in terms of weight are health care, technology, consumer cyclical and industrials, representing 20.36%, 16.50%, 13.64% and 8.34% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Walmart
Point72 purchased 2,812,781 shares of Walmart (WMT, Financial), giving the position 1.30% equity portfolio weight.
Shares of Walmart averaged $142.38 during the first quarter; the stock is fairly valued based on its price-to-GF Value ratio of 0.92 as of Wednesday.
The Bentonville, Arkansas-based discount retail giant has a GF Score of 81 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 7 out of 10, a GF Value rank of 5 out of 10 and a rank of 6 out of 10 for growth and financial strength.
Even though the company’s operating margin has declined by approximately 2.3% per year on average over the past five years, Walmart’s return on equity outperforms approximately 69% of global defensive retail companies.
Intel
The firm purchased 10,407,413 shares of Intel (INTC, Financial), giving the position 1.06% equity portfolio weight.
Shares of Intel averaged $28.33 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.83 as of Wednesday.
The Santa Clara, California-based chipmaker has a GF Score of 77 out of 100 based on a profitability rank of 8 out of 10, a GF Value rank of 7 out of 10, a growth rank of 4 out of 10 and a rank of 5 out of 10 for momentum and financial strength.
Nvidia
Point72 purchased 980,638 shares of Nvidia (NVDA, Financial), giving the position 0.85% equity portfolio weight.
Shares of Nvidia averaged $216.41 during the first quarter; the stock is modestly overvalued based on its price-to-GF Value ratio of 1.24 as of Wednesday.
The Santa Clara, California-based graphics processing unit manufacturer has a GF Score of 86 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 8 out of 10, a momentum rank of 6 out of 10 and a GF Value rank of 1 out of 10.
McDonald’s
The firm invested in 966,166 shares of McDonald’s (MCD, Financial), giving the shares 0.85% equity portfolio weight.
Shares of McDonald’s averaged $267.91 during the first quarter; the stock is fairly valued based on its price-to-GF Value ratio of 1.06 as of Wednesday.
The Chicago-based fast-food restaurant chain has a GF Score of 76 out of 100 based on a momentum rank of 9 out of 10, a profitability rank of 8 out of 10, a growth rank of 5 out of 10, a financial strength rank of 4 out of 10 and a GF Value rank of 3 out of 10.
