On August 1, 2023, Fairholme Fund (Trades, Portfolio), managed by its founder Bruce Berkowitz (Trades, Portfolio), reduced its stake in The St. Joe Co (JOE, Financial). This article will provide an in-depth analysis of the transaction, the guru's profile, and the traded stock company's basic info.
About Fairholme Fund (Trades, Portfolio)
Fairholme Fund (Trades, Portfolio) is a firm known for its impressive investment record. Under the management of Bruce Berkowitz (Trades, Portfolio), the fund gained 253% in the 10-year period after its inception in 1999, while the S&P lost money. Berkowitz's investment philosophy is to concentrate investments in a relatively small number of companies with good management and cash flow, adhering to the motto "Ignore the Crowd". The firm currently holds seven stocks, with a total equity of $1.06 billion. Its top holdings include Imperial Metals Corp(TSX:III, Financial), Commercial Metals Co(CMC, Financial), Enterprise Products Partners LP(EPD, Financial), The St. Joe Co(JOE, Financial), and Federal Home Loan Mortgage Corp(FMCC, Financial). The firm's top sectors of investment are Real Estate and Energy.
Transaction Details
On August 1, 2023, Fairholme Fund (Trades, Portfolio) reduced its stake in The St. Joe Co by 407,000 shares, a change of -1.90%. The shares were traded at a price of $62.9 each. Following the transaction, the firm holds a total of 20,971,657 shares in The St. Joe Co, representing 35.94% of the guru's holdings in the traded stock and 127.26% of the guru's portfolio.
About The St. Joe Co
The St. Joe Co, a real estate development, asset management, and operating company, was established in the USA on March 10, 1992. The company operates in Commercial, Hospitality, Other, and Residential segments. As of August 2, 2023, the company has a market capitalization of $3.67 billion. The St. Joe Co's stock is currently priced at $62.865, with a PE percentage of 42.77. According to GuruFocus, the stock is fairly valued, with a GF Value of 65.26 and a Price to GF Value ratio of 0.96. The company's stock has gained 526.15% since its IPO and 60.37% year-to-date.
Stock Performance Analysis
The St. Joe Co's stock performance is impressive, with a GF Score of 88/100, indicating good outperformance potential. The company's Financial Strength is ranked 5/10, while its Profitability Rank is 8/10. The company's Growth Rank is 9/10, indicating strong growth potential. The company's GF Value Rank is 5/10, and its Momentum Rank is 10/10, indicating strong momentum.
Market Momentum and Predictability
The St. Joe Co's market momentum and predictability are also noteworthy. The company's RSI 14 Day is 81.99, and its Momentum Index 12 - 1 Month is 17.19. Over the past three years, the company's revenue growth is 26.60%, and its earning growth is 39.10%.
Other Gurus' Involvement
Other gurus, such as Mario Gabelli (Trades, Portfolio), also hold The St. Joe Co's stock. However, Fairholme Fund (Trades, Portfolio) remains the largest guru holder of the stock.
Conclusion
In conclusion, Fairholme Fund (Trades, Portfolio)'s recent transaction has reduced its stake in The St. Joe Co, but the firm still holds a significant position in the company. The St. Joe Co's strong financial performance and market momentum make it a potentially attractive investment. However, as always, investors should conduct their own thorough research before making investment decisions.
