Alabama’s Pension Bought Micron, Altria, and Honeywell Stock. Here’s What It Sold.

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Marlboro cigarettes, produced by a portion of Altria Group.

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Alabama’s authorities pension made immoderate large changes successful its banal portfolio successful the 2nd quarter.

Retirement Systems of Alabama accrued investments successful Micron Technology (ticker: MU), Altria Group (MO), and Honeywell International (HON) stock, and slashed its involvement successful Walt Disney (DIS). RSA, arsenic the pension is known, disclosed the banal trades, among others, successful a signifier it filed with the Securities and Exchange Commission.

RSA declined to remark connected its banal trades.

The Teachers Retirement System constituent is the largest, accounting for $26.7 cardinal of RSA’s total assets of $40.7 billion arsenic of Sept. 30, 2020. The teachers’ pension was 69.4% funded arsenic of Sept. 30, 2019, the latest actuarial valuation; that means the pension had lone 69.4 cents for each dollar of obligation. Other components of the RSA are likewise underfunded. That’s astir par for the course, according to the Pew Charitable Trusts; utilizing information from 2017, the enactment recovered that authorities pensions were 70.7% funded connected average.

The RSA bought 117,964 much Micron shares to extremity the 2nd 4th with 1.2 cardinal shares of the spot maker.

Micron banal hasn’t kept gait with the marketplace truthful acold successful 2021. It roseate 13% successful the archetypal half, and truthful acold successful July, Micron banal has slipped 10.6%. By comparison, the S&P 500 index roseate 14.4% successful the archetypal half, and has gained 2.7% truthful acold successful July.

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Micron reported strong fiscal-third-quarter earnings, and raised guidance connected the past time of June, but shares fell. Investors whitethorn beryllium wary that demand could slow. With the pullback, we’ve noted that Micron banal seems cheap.

The pension bought 512,904 further Altria shares to extremity June with 2.5 cardinal of the baccy giant’s shares. Altria banal roseate 16.3% successful the archetypal half, and truthful acold successful July it is astir flat.

Altria’s first-quarter earnings, reported successful precocious April, were mixed. An analyst downgrade, citing respective headwinds, followed soon after. Barron’s has noted that the shares look cheap, and connection a hefty dividend yield.

Honeywell banal eked retired a 3.1% summation successful the archetypal half, and truthful acold successful July it has added 4.5%. In May, we noted that the concern conglomerate is continuing to transform itself into a software-centered company. Honeywell announced a woody successful June to signifier a stand-alone quantum-computing company. Honeywell joined the Nasdaq-100 index past week.

RSA bought 215,159 much Honeywell shares to extremity the 2nd 4th with 474,573 shares.

The pension sold 216,333 Disney shares to chopped its concern to 923,039 shares of the media and amusement giant. Disney banal slipped 3% successful the archetypal fractional of 2021, and truthful acold successful July it is flat.

We noted successful June that Disney banal would beryllium a victor if the economy reopened sooner than expected. Its movie “Black Widow” had a beardown opening earlier this month, with a bully showing connected the Disney+ streaming platform. We’ve suggested that aft ample companies specified arsenic Disney suspended dividends, the situation has stabilized.

Inside Scoop is simply a regular Barron’s diagnostic covering banal transactions by firm executives and committee members—so-called insiders—as good arsenic ample shareholders, politicians, and different salient figures. Due to their insider status, these investors are required to disclose banal trades with the Securities and Exchange Commission oregon different regulatory groups.

Write to Ed Lin astatine and travel @BarronsEdLin.

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