The banking unit of TIAA more than tripled its investment in GE stock, and initiated a position in Deere stock. The bank also cut investments in IBM and Salesforce.
Sebastien Bozon/AFP via Getty ImagesThe banking unit of the TIAA made some big changes in its U.S.-traded investments in the third quarter.
TIAA FSB more than tripled its investment in General Electric stock (ticker: GE), cut holdings in International Business Machines (IBM) and Salesforce. com stock (CRM), and initiated a position in Deere stock (DE). The bank disclosed the trades, among others, in a form it filed with the Securities and Exchange Commission.
TIAA FSB, which managed $22.4 billion in its U.S.-traded assets as of Sept. 30, declined to comment on the transactions.
The bank bought 1.16 million additional GE shares in the third quarter to end September with 1.65 million shares.
GE stock has surged 17% so far in October through Friday’s close, but the year-do-date drop remains 35%. In comparison, the S&P 500 index, a broad measure of the market, has gained 3.6% in October, and the year-to-date gain stands at 7.8%.
GE announced a management shuffle earlier this month. And the SEC notified GE this month that it planned to bring enforcement actions related to accounting practices, but at least one observer remains upbeat on the stock. News that the Boeing (BA) 737 MAX could fly again lifted shares on Friday.
TIAA FSB sold 42,893 IBM shares to end the third quarter with 157,970 shares.
IBM stock hasn’t recovered from a 17% drop in the first quarter as the coronavirus pandemic roiled markets, and the year-to-date loss stands at 6.1%.
Earnings have been strong at IBM. Earlier this month, the company said it would spin off its managed-infrastructure business, and focus on hybrid cloud software and services. We think IBM stock is among a dozen underpriced growth picks that will also make value investors happy.
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After ending the first quarter in the red, Salesforce stock has rocketed, and the year-to-date gain now stands at 59%.
The cloud-based computing giant recently became a component of the Dow Jones Industrial Average. Salesforce also disclosed a substantial stake in newly public software company Snowflake (SNOW).
TIAA FSB sold 37,628 Salesforce shares in the third quarter to end the period with 64,651 shares.
The bank initiated a position of 45,382 Deere shares. It didn’t own any stock in the maker of heavy machinery at the end of the second quarter.
Deere stock has bounced back from a 20% drop in the first quarter, and it is now up 39% in 2020.
Fiscal-third-quarter earnings, reported in late August, were strong. Analysts at the time rightly predicted Deere stock had more room to run. In fact, the shares traded to a record this week.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
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October 17, 2020 at 06:30PM
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A Giant Bank Bought Up GE and Deere Stock, and Sold IBM and Salesforce - Barron's
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