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Companies Tumble to 5-Year Lows

- By alicet236

According to GuruFocus list of five-year lows, these guru stocks have reached their five-year lows: Staples Inc. (SPLS), Valley National Bancorp (VLY), Aaronas Inc. (AAN) and Diebold Inc. (DBD).

Staples reaches $8.45


The price of Staples' shares has declined to $8.45, which is only 5.3% above the five-year low of $8.00. It is now 58.8% off the five-year high of $19.40.

Staples is owned by 13 gurus we are tracking. Among them, three have added to their positions during the past quarter. Ten reduced their positions.

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Staples has a market cap of $5.51 billion; its shares were traded around $8.52 with a P/E ratio of 15.19 and P/S ratio of 0.27. The trailing 12-month dividend yield of Staples stocks is 5.64%. The forward dividend yield of Staples stocks is 5.56%.

Staples stock prices and revenue per share have been declining. This could be a result of increased competition and decreasing comparable store sales as announced in the companyas evaluation of its 2015 full-year results.

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Staples has increased its range of products to include breakroom supplies and items outside the range of traditional office supplies in hopes of partly offsetting declining sales and business. The companyas aims include reducing expenses to increase efficiency, engaging in beneficial and strategic acquisitions and increasing the productivity and efficiency of its store network.

GuruFocus has found two severe warning signs for Staples:

  • Declining revenue per share.



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  • Declining operating margin.



In its first-quarter results, the company announced that total revenues have decreased 3% to $5.1 billion since last yearas first quarter. Furthermore, the company declared net income of $41 million, compared to last yearas net earnings of $59 million.

GuruFocus gurus T Rowe Price Equity Income Fund (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), Donald Yacktman (Trades, Portfolio), David Dreman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), and HOTCHKIS & WILEY all kept their positions in Staples unchanged or slightly adjusted. Gurus Charles Brandes (Trades, Portfolio) and Richard Pzena (Trades, Portfolio) reduced their positions in the company.

Valley National Bancorp reaches $9.06

The price of Valley National Bancorp's shares has declined to $9.06, which is only 8.3% above the five-year low of $8.31. It is now 38.3% off the five-year high of $13.46. Valley National Bancorp is owned by five gurus we are tracking. Among them, one added to the position during the past quarter. Four reduced their positions. Valley National Bancorp has a market cap of $2.3 billion; its shares were traded around $9.06 with a P/E ratio of 20.60 and P/S ratio of 3.31. The trailing 12-month dividend yield of Valley National Bancorp stocks is 4.86%. The forward dividend yield of Valley National Bancorp stocks is 4.82%.

Valley National Bancorp's stock price has lost nearly half of its initial value for the last 10 years. However, the companyas revenue has increased. This could be a result of increased average loan balances and decreased average long-term borrowings.

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GuruFocus has found two severe warning signs for Valley National Bancorp :

  • Declining revenue per share.



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  • Declining operating margin.



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Valley National Bancorp announced its 2016 first-quarter results with net earnings of $36.2 million, an increase from last yearas net earnings of $30.3 million. The company also recognized net interest income of $148.2 million, an increase from last yearas $132.1 million.

Recent trades

Guru Private Capital (Trades, Portfolio) initiated its position in Valley National Bancorp and bought 632,545 shares. Third Avenue Management (Trades, Portfolio) reduced its position in the company and owns 473,304 shares.

Senior EVP & COO, Director Peter P. Crocitto sold 3,175 shares of Valley National Bancorp stock on May 26 at the average price of $9.44.

Aaron's reaches $22.42

The price of Aaron's shares has declined to $22.42, which is only 9.7% above the five-year low of $20.24. It is now 50.4% off the five-year high of $40.80. Aaron's is owned by nine gurus we are tracking. Among them, seven have added to their positions during the past quarter. Five reduced their positions. Aaron's has a market cap of $1.63 billion; its shares were traded around $22.42 with a P/E ratio of 11.99 and P/S ratio of 0.53. The trailing 12-month dividend yield of Aaron's stocks is 0.43%. The forward dividend yield of Aaron's stocks is 0.43%. Aaron's had an annual average earnings growth of 12.10% over the past 10 years. GuruFocus rated Aaron's the business predictability rank of 4-star.

Aaronas stock price faced a sharp decline toward the end of 2015. For the past 10 years, Aaronas stock prices have slightly increased. The companyas revenue has shown consistent growth with faster growth starting in 2014 possibly from the strategic acquisition of Progressive Finance Holdings.

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Aaronas acquired Dent-a-Med Inc. in 2015 as well as Progressive Finance Holdings LLC in 2014, which was the primary cause of the increase of total revenues from 2013 to 2015. Aaronas faces increasing competition from ecommerce and digital platforms as well as its largest competitor, Rent-a-Center Inc. This could reduce the companyas market share and results from operations.

GuruFocus has found one severe warning sign for Aaronas:

  • Declining operating margin.



Aaronas recognized total revenues of $854.4 million and net earnings of $49.7 million in its 2016 first financial quarter report. This is compared to last yearas total revenues of $821.8 million and net earnings of $49.2 million.

Recent trades

Gurus Brandes, Tom Gayner (Trades, Portfolio) and DremanA increased their positions in Aaronas. FPA Capital Fund (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) kept their positions in the company unchanged or slightly adjusted.

CEO Progressive Leasing Ryan K. Woodley bought 4,000 shares of Aaron's stock on March 7 at the price of $23.64. CFO, President Strategic Ops. Steven A. Michaels bought 3,000 shares of Aaron's stock on the same day at the price of $23.47. CTO Progressive Leasing Curtis Linn Doman bought 3,000 shares of Aaron's stock on March 17 at the price of $23.75.

Diebold reaches $24.99

The price of Diebold's shares has declined to $24.99, which is only 8.6% above the five-year low of $22.84. It is now 46.8% off the five-year high of $42.93. Diebold is owned by five gurus we are tracking. Among them, one added to the position during the past quarter. Five reduced their positions. Diebold has a market cap of $1.63 billion; its shares were traded around $24.99 with a P/E ratio of 6.67 and P/S ratio of 0.72. The trailing 12-month dividend yield of Diebold stocks is 4.61%. The forward dividend yield of Diebold stocks is 4.58%.

Diebold stock prices have declined for the past 10 A years. This could be a result of declining revenue that has occurred for the past 10 years as well.

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Diebold is currently engaging in a multiyear transformation plan that is expected to be finished near the end of 2017. The company is focused on decreasing costs and reinvesting its cost savings in order to spur long-term growth. Diebold has also begun to focus in on the self-service industry and hopes to engage in the opportunities offered by this industry.

GuruFocus has found one severe warning sign for Diebold :

  • Declining revenue per share.



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Diebold announced its 2016 first financial quarter results. The company recognized a decrease in total revenues of 11.3% from last yearas first quarter to $509.6 million. Diebold also reported net income of $168.5 million, compared to last yearas net loss of $5.6 million.

Recent trades

President and CEO Andreas W. Mattes sold 3,555 shares of Diebold stock on Feb. 11 at the price of $23.25. Director Phillip R. Cox and VP, Chief HR Officer Sheila M. Rutt together sold 4,883 shares of Diebold stock between January and May.

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This article first appeared on GuruFocus.