Southeastern Cuts Stake In Koninklijke Philips NV (ADR) (PHG) Despite Management’s Strategy Shift

Lately Koninklijke Philips NV (ADR) (NYSE:PHG) has been trying to position its healthcare segment as a strong driver for growth and has expanded its product portfolio and signed significant deals in this regard. The products include Amara View CPAP mask for CPAP patients, Alice NightOne for patients with sleep disorders, and Lumify, which offers greater mobility and connectivity for the ultrasound process. Koninklijke Philips NV (ADR) (NYSE:PHG) also signed a 15-year ultrasound provision partnership with Reinierde Graaf hospital in the Netherlands.

In its financial results for the first quarter, Koninklijke Philips NV (ADR) (NYSE:PHG) missed analyst estimates, posting a quarterly EPS of €0.11 ($0.12), which marked a 26% increase on a year-over-year basis, while revenues of €5.34 billion ($5.89 billion) represented a 13% increment from the same quarter last year. The causes for disappointment were entrenched in the softness in the prevailing markets of China, Russia, Brazil, and Japan, combined with currency impact and remediation cost in Cleveland.

Koninklijke Philips NV (ADR) (NYSE:PHG) has been facing a loss of interest from smart money. Among the funds that we track, eight had an aggregate investment of $675.92 million in the company at the end of March, as compared to 12 firms with $701.30 million in holdings at the end of the previous quarter. Aside from Southeastern, the two largest stockholders of Koninklijke Philips NV (ADR) (NYSE:PHG) within our database include John A. Levin‘s Levin Capital Strategies and Dmitry Balyasny‘s Balyasny Asset Management. Their respective holdings at the end of the first trimester amounted to 5.49 million shares valued at $155.51 million and 840,800 shares valued at $23.83 million.

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