Recent Transaction Overview
On December 31, 2023, Pzena Investment Management, LLC, led by value investor Richard Pzena (Trades, Portfolio), made a notable adjustment to its holdings in PVH Corp (PVH, Financial). The firm reduced its stake by 565,523 shares, resulting in an 8.11% decrease in its position. This transaction had a -0.3% impact on the portfolio, with the shares traded at an average price of $122.12. Following the trade, Pzena Investment Management holds a total of 6,405,172 shares in PVH Corp, which represents 3.37% of the portfolio and 10.70% of the company's outstanding shares.
Richard Pzena (Trades, Portfolio)'s Investment Profile
Richard Pzena (Trades, Portfolio) is the founder and Co-Chief Investment Officer of Pzena Investment Management, LLC, established in 1995. With a BS summa cum laude from the Wharton School and an MBA from the University of Pennsylvania, Pzena's investment philosophy focuses on purchasing shares in quality businesses at low prices, often during times of market distress. The firm's approach involves a thorough analysis to determine whether the factors causing a stock's price drop are temporary or permanent. Pzena Investment Management oversees an equity portfolio valued at $23.28 billion, with top holdings in sectors such as Financial Services and Technology, including Cognizant Technology Solutions Corp (CTSH, Financial) and Edison International (EIX, Financial).
About PVH Corp
PVH Corp, a prominent player in the global fashion industry, operates iconic brands such as Calvin Klein and Tommy Hilfiger. With a history dating back to 1881, the company has a strong presence in over 40 countries, managing e-commerce platforms and approximately 1,500 stores. PVH's business segments include Calvin Klein International, Tommy Hilfiger North America, and Heritage Brands Wholesale, among others. The company's headquarters are located in New York City, and it has been publicly traded since June 11, 1976.
PVH Corp's Financial Overview
As of the latest data, PVH Corp boasts a market capitalization of $7.14 billion, with a current stock price of $119.79 and a PE ratio of 14.13. The stock is considered modestly overvalued with a GF Value of $94.65 and a price to GF Value ratio of 1.27. Since the transaction date, the stock has experienced a -1.91% change, with a year-to-date performance of -1.67%. The company's GF Score stands at 71/100, indicating a likelihood of average performance.
Impact on Pzena's Portfolio
The recent transaction has slightly altered the significance of PVH Corp within Richard Pzena (Trades, Portfolio)'s investment portfolio. Prior to the trade, PVH Corp constituted a more substantial portion of the portfolio. The adjustment reflects Pzena's ongoing portfolio management strategy and valuation assessment of PVH Corp's stock.
Financial Health and Performance Metrics
PVH Corp's financial health is reflected in its Financial Strength rank of 6/10 and a Profitability Rank of 7/10. The company's Growth Rank is currently at 2/10, with a GF Value Rank of 3/10. PVH's Momentum Rank is high at 9/10, indicating strong recent performance. The company's Piotroski F-Score is 7, suggesting a healthy financial situation, while the Altman Z-Score of 2.49 indicates some financial stress. PVH's cash to debt ratio is 0.10, with an interest coverage of 7.50. The company's ROE and ROA are 10.59% and 4.62%, respectively.
Market Sentiment and Other Investors
Since its IPO, PVH Corp's stock has seen a staggering 5,295.95% price change. Other notable investors in PVH Corp include Mason Hawkins (Trades, Portfolio), Steven Scruggs (Trades, Portfolio), and Ken Fisher (Trades, Portfolio). Pzena Investment Management remains the largest guru shareholder in PVH Corp, although the exact share percentage is not disclosed.
Transaction Analysis
The reduction in Pzena's stake in PVH Corp suggests a strategic move based on the firm's valuation methods and market outlook. While PVH remains a significant holding, the adjustment indicates Pzena's nuanced approach to portfolio management, balancing potential risks and rewards in the context of the firm's overall investment strategy.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
