Three billionaires reduced EMC Corporation (EMC) in the third quarter, but a large group of billionaires remains heavily invested in the global data storage company, and here's why. EMC has invested $17 billion in acquisitions in the last 10 years, integrating more than 70 technology companies to strengthen their core business and extend their reach to 86 countries. The company's revenue growth is 14.80% over 10 years and 6.70% over 12 months. EMC's EBITDA growth rate is 18.80% over 10 years and 5.40% over 12 months, and its book value growth is 9.50% over 10 years and 9.60% over 12 months, all based on annual rates per share. Furthermore, as a Fortune 500 company, EMC Corporation ranks 139th, and the company had its record revenue year in 2012, with reported revenue at $21.7 billion. EMC has around 400 sales offices and employs approximately 60,000 people worldwide.
EMC Corporation's third quarter update shows revenue increasing across four major global geographies, with strong revenue growth in Brazil, Russia, India and China (BRIC), representing around 40% of the world's population.
Here's a company update and a look at three gurus reducing in the third quarter of 2013.
EMC Corporation (EMC)
Predictability: 3 out of 5 Stars
Down 4% over 12 months, EMC Corporation, the data storage company, has a market cap of $50.38 billion; its shares were traded at around $24.21 with a P/E ratio of 19.40. The dividend yield is 0.80%.
Tracking EMC share price, revenue and net income since 1990:
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Founded in 1979, EMC Corporation and its subsidiaries develop, deliver and support the information technology industry's range of information infrastructure and virtual infrastructure technologies and solutions. The company manages its business in two broad catego! ries: EMC Information Infrastructure and VMware Virtual Infrastructure.
The company's EMC Information Infrastructure segment provides a foundation for organizations to store, manage, protect, analyze and secure their vast and ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. EMC's VMware Virtual Infrastructure segment represents the company's majority equity stake in VMware Inc. and provides virtualization infrastructure solutions.
Third Quarter Financials: EMC Corporation reported financial results for the third quarter of 2013 with revenue up 5% at $5.5 billion compared to the same quarter of 2012. Net income for the quarter was $586 million (GAAP). The company reported $0.27 for earnings per weighted average diluted share for the third quarter of 2013. EMC's operating cash flow increased 25% over the same quarter of 2012. At the end of the third quarter 2013, EMC Corporation had $17.5 billion in cash and investments on the balance sheet.
Third Quarter Guru Action: As of Sept. 30, 2013, the top guru stakeholder Manning & Napier Advisors Inc. reduced its position by 1.44%, selling 440,059 shares at an average price of $25.97, for a loss of 6.6%.
Based on a five-year trading history, the firm bought a total of 44,512,835 shares at an average price of $19.05 per share, averaging a gain of 27%. Selling a total of 26,390,835 shares at an average price of $16.24, the firm averaged a gain of 49%.
Manning & Napier's highest gain was 130.8% in the fourth quarter of 2008 when the firm bought 5,779,587 shares at an average price of $10.51 per share.
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Current shares of 30,039,743 represent 1.44% of shares outstanding and comprise 3.6% of the firm�! �s total ! assets managed.
As of Sept. 30, 2013, Scott Black reduced his position by 3.72%, selling 16,930 shares at an average price of $25.97, for a loss of 6.7%.
Across six quarters of trading, Scott Black bought a total of 455,012 shares at an average price of $25.34 per share, averaging a loss of 4%. Selling a total of 16,930 shares at an average price of $25.97, he averaged a loss of 7%.
Current shares of 438,082 represent 0.02% of shares outstanding and comprise 1.3% of his total assets managed.
As of Sept. 30, 2013, Ken Fisher reduced his position by 17.15%, selling 9,846 shares at an average price of $25.97, also for a 6.7% loss.
Fisher's five-year history shows he averaged a gain of 31% buying a total of 4,764,205 shares at an average price of $18.44. Selling 25,567,801 shares at an average price of $24.39 per share, he had a loss of 1%.
Fisher's current shares are 47,561.
Check out the numerous gurus holding EMC and very active insider selling.
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