A giant retirement made major changes to his equity investments in the second quarter.
Ohio State Teachers Retirement System Recently Announced It Is Full of Covid Vaccine Maker
(ticker: MRNA), and reduced investment in
United Airlines Holdings
(LLY) in the second quarter. STRS Ohio, as the pension is called, disclosed the transactions in a form it submitted with the Securities and Exchange Commission.
STRS Ohio, who succeeded $79.8 billion in assets as of June 30, 2020, did not respond to a request for comment. The pension had a coverage ratio of 77.4% as of June 30, 2020, according to the latest comprehensive annual financial report; that means it had 77.4 cents for every dollar of commitments. The funding ratio was 76.1% a year earlier. These figures are better than the average state pension, according to a study by the Pew Charitable Trusts. Based on data from 2017, the organization found that the average pension had a funding ratio of 70.7%.
STRS Ohio significantly increased its investment in Moderna by purchasing 146,137 additional shares to close the second quarter with 156,679 shares.
Moderna shares are up 125% in the first half of 2021 and 50.4% so far in the third quarter. If the pension still owns those recently acquired shares, the greater interest has already paid off nicely. In comparison: the
S&P 500 Index
rose 14.4% in the first half and added 2.3%.
We suggested buying Moderna stock in April, noting that the valuation was relatively cheap for a biotech company and that it had enough money to continue the rest of its pipeline. Moderna joined the S&P 500 in July and is one of the top performers of the year so far. Medical experts are now weighing the potential for booster shots for those already vaccinated against Covid-19.
STRS Ohio sold 50,577 Starbucks shares with 435,213 shares of the café chain through the end of June. Starbucks stock rose 4.5% in the first half and 8.6% so far in the third quarter.
Starbucks reported strong third quarter results last week. The company warned that inflation and wages push costs higher. Starbucks struggles to keep cafes fully staffed, and in June some locations were run out of cups and other supplies.
United States stocks were up 20.9% in the first half and 10.7% so far in the third quarter.
United expects to turn profitable in the fall and the airline has released positive expectations for the third quarter. it recently more flights added to holiday destinations. United also ordered hundreds of new jets from
STRS Ohio sold 122,115 United shares to close the second quarter with 850,196 shares.
The boarding house sold 71,340 Lilly shares to reduce its stake to 595,480 shares at the end of June. Lilly shares rose 35.9% in the first half and 6.1% so far in the third quarter.
Lilly shares rose in June after the company said it would submit its Alzheimer’s drug donanemab for approval later this year through the Food and Drug Administration’s accelerated approval process. However, analysts told investors to curb their enthusiasm for the stock. Lilly announced $1 Billion Acquisition in Mid-July.
Inside Scoop is a regular Barron article about stock transactions by corporate leaders and board members – so-called insiders – as well as major shareholders, politicians and other prominent figures. Because of their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at email@example.com and follow @BarronsEdLin.