On December 31, 2024, Donald Smith & Co (Trades, Portfolio) executed a significant transaction involving Tutor Perini Corp (TPC, Financial). The firm added 179,819 shares to its existing position, increasing its stake by 5.50%. This move reflects the firm's continued confidence in the potential of Tutor Perini Corp, despite the challenges the company faces in the current market environment. The transaction was completed at a trade price of $24.20 per share, bringing the total number of shares held by Donald Smith & Co (Trades, Portfolio) to 3,450,257.

Donald Smith & Co (Trades, Portfolio): A Deep-Value Investment Firm

Donald Smith & Co (Trades, Portfolio), founded by Donald G. Smith, is renowned for its deep-value investment strategy. The firm focuses on undervalued stocks with potential for earnings growth, employing a bottom-up approach. Donald Smith, the firm's founder, was a pioneer in value investing, having started his career as an analyst and later becoming the Chief Investment Officer of Home Insurance Company. The firm is known for investing in stocks of out-of-favor companies selling at discounts to tangible book value, with a positive outlook for earnings potential over the next 2-4 years.

Overview of Tutor Perini Corp

Tutor Perini Corp, a USA-based company, provides construction services across various segments, including civil and building. The company has a market capitalization of $1.24 billion and primarily generates revenue from the civil segment. Tutor Perini offers general contracting, construction management, and design-build services to both private and public customers. The company constructs and repairs transportation infrastructure, water-treatment facilities, and a wide range of buildings, with the majority of its total revenue derived from the United States.

Financial Metrics and Valuation

The stock is currently trading at $23.69, with a GF Value of $9.69, indicating it is significantly overvalued. The stock's GF Score is 64/100, suggesting poor future performance potential. This score reflects the company's moderate profitability and growth ranks, with a balance sheet rank of 5/10. Despite these challenges, Donald Smith & Co (Trades, Portfolio)'s increased stake suggests a belief in the company's long-term potential.

Impact on Portfolio and Market Position

The transaction increased the stock's position in Donald Smith & Co (Trades, Portfolio)'s portfolio to 1.97%. The firm now holds a total of 3,450,257 shares, representing 6.60% of its holdings in Tutor Perini Corp. This significant stake underscores the firm's commitment to its investment strategy and its confidence in Tutor Perini's ability to overcome current market challenges and deliver value in the long term.

Performance and Growth Indicators

Tutor Perini Corp has shown a negative revenue growth of -10.40% over the past three years. The company's profitability and growth ranks are moderate, with a balance sheet rank of 5/10. The company's Altman Z score of 1.54 indicates some financial distress, while its Piotroski F-Score of 6 suggests moderate financial health. Despite these indicators, the firm's investment suggests a belief in the company's potential for recovery and growth.

Other Gurus Involved

Besides Donald Smith & Co (Trades, Portfolio), other notable investors in Tutor Perini Corp include HOTCHKIS & WILEY and Joel Greenblatt (Trades, Portfolio). Donald Smith & Co (Trades, Portfolio) remains the largest shareholder among these gurus, highlighting its significant influence and confidence in the company's future prospects. This collective interest from prominent investors may signal potential opportunities for value investors looking to capitalize on Tutor Perini's long-term growth potential.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.