Dodge & Cox Inc. Now Owns 10.8%% Of Common Stock In AOL

Dodge & Cox Inc. Now Owns 10.8% Of Common Stock In AOL

Dodge & Cox Inc. has increased its stake in AOL, Inc. (NYSE:AOL) to 10.8%, according to the latest SEC Form 13G filing. The investment management company now owns 10,114,199 shares of common stock in the Internet-based company, with an equivalent voting power, and power to dispose.

The San Francisco based mutual fund was founded in 1930 by Van Duyn Dodge and E. Morris Cox, and has approximately $73 billion worth of assets under management.

Dodge & Cox has acquired the stake through two investment arms, including Dodge & Cox Inc. and Dodge & Cox Stock Fund. The company now holds 5,420,354, or 5.8%, of AOL’s common stock, via its Stock Fund arm, although this amount does not qualify for any shared dispositive or voting power.

Dodge & Cox also holds stakes in Sprint Nextel Corporation (NYSE:S) and Goldman Sachs Group, Inc. (NYSE:GS), while during the June quarter, it offloaded The Home Depot, Inc. (NYSE:HD) and eBay Inc (NASDAQ:EBAY), among others, as revealed in the company’s form 13F filing for 2Q12.

AOL, Inc. (NYSE:AOL) has 93.97 million shares of common stock outstanding, with 91.90 million floated. Its market cap stands at $3.36 billion. The Internet information provider has a commanding profit margin of 46.66% for the trailing twelve months, and an operating margin of 11.13%.

AOL, Inc. (NYSE:AOL) reported $1.47 billion worth of cash reserves in its most recent quarter, or $15.63 cash per share. It has a trailing twelve-month price to earnings ratio of $3.54x, while the 12 month forward figure as of Dec 31, 2013, is estimated at 28.14x. The industry P/E ratio stands at 24.8x, which is way below AOL’s.

At the time of this writing, AOL Inc. (NYSE:AOL) stock was trading at $35.62 per share, down $0.97, or a 2.65% decline from yesterday’s close.