Ruane Cunniff Doubles Down on MSA Safety With $134 Million Purchase: Is the Dividend King a Buy?
Key Points
Ruane Cunniff increased its MSA position by 756,219 shares; estimated net position value change of $134.43 million.
The transaction represents approximately 2.17% of 13F reportable assets under management (AUM).
Post-trade, Ruane Cunniff holds 1,705,286 shares valued at $293.43 million.
MSA Safety stake now accounts for 4.86% of fund AUM, which places it outside the fund's top five holdings.
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Ruane Cunniff L.P. reported a significant buy of MSA Safety Incorporated in its Nov. 13, 2025, SEC filing, adding 756,219 shares and increasing its stake by an estimated $134.43 million.
What happened
According to a filing with the U.S. Securities and Exchange Commission on Nov. 13, 2025, Ruane Cunniff increased its holding in MSA Safety Incorporated (NYSE:MSA) by 756,219 shares during the third quarter.
The fund’s total position reached 1,705,286 shares, valued at $293.43 million as of Sept. 30, 2025, up from the prior quarter.
What else to know
The buy raises MSA to 4.86% of the fund’s reported U.S. equity AUM.
Top holdings after the filing:
- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG): $878 million (14.6% of AUM)
- Charles Schwab (NYSE:SCHW): $603 million (10% of AUM)
- Formula One (NASDAQ:FWON.K): $582 million (9.6% of AUM)
- Taiwan Semiconductor Manufacturing (NYSE:TSM): $526 million (8.7% of AUM)
- Elevance Health (NYSE:ELV): $468 million (7.8% of AUM)
As of Nov. 13, 2025, shares were priced at $159.27, down 9% over the past year, underperforming the S&P 500 by 21 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-11-13) | $159.27 |
| Market Capitalization | $6.24 billion |
| Revenue (TTM) | $1.86 billion |
| Net Income (TTM) | $279.94 million |
Company Snapshot
MSA Safety:
- Provides safety products, including gas and flame detection instruments, breathing apparatus, portable gas detectors, industrial head protection, firefighter helmets, protective apparel, and fall protection equipment.
- Generates revenue through manufacturing and direct and indirect sales of safety equipment and related services to industrial, utility, construction, military, and emergency response sectors.
- Serves distributors and end-users across North America, Latin America, and international markets, targeting industries with high safety requirements such as oil & gas, petrochemical, utilities, and mining.
MSA Safety Incorporated is a leading provider of advanced safety products with a global presence, focusing on mission-critical applications.
The company leverages a diversified product portfolio and established brand names to serve demanding environments where safety and compliance are paramount.
Its strong market position is supported by a century-long heritage and a strategy centered on innovation and reliability in industrial safety solutions.
Foolish take
Ruane Cunniff's large position in Dividend King MSA Safety is certainly eye-catching. The firm now holds a hefty 4.3% stake of MSA's equity, making it the company's third-largest institutional shareholder.
Since MSA Safety has grown its dividend for more than 50 consecutive years (now 55), it has earned elite Dividend King status.
However, despite this incredible run of dividend payment increases, MSA's 1.3% dividend yield only uses 29% of the company's net income. This means there is plenty of room to keep raising its payouts for decades ahead -- a fantastic thing for dividend growth investors to see.
Furthermore, MSA Safety's operations are best-in-class, which is how they achieved becoming a Dividend King in the first place.
The company is a leader in safety equipment, generating sales in three business segments:
- Detection (gas, flame, and refrigerant detection)
- Fire services (self-contained breathing apparatuses, helmets, and protective gear)
- Industrial personal protective equipment (industrial helmets, fall protection, and air-purifying respirators)
Currently trading at just 22 times free cash flow, MSA Safety is an excellent, steady investment for passive income seekers to consider, especially as the company has historically grown sales by mid-single digits like clockwork.
I really like Ruane Cunniff's decision to buy the stock, especially since they seem to be long-term holders.
Glossary
13F reportable assets under management (AUM): The total value of U.S. securities a fund manager must disclose in quarterly SEC Form 13F filings.
Stake: The ownership interest or proportion of shares held in a company by an investor or fund.
Fund AUM: The total market value of all assets managed by an investment fund.
Top holdings: The largest investments within a fund's portfolio, typically ranked by market value.
Direct and indirect sales: Direct sales are made to end-users; indirect sales go through intermediaries like distributors.
Mission-critical applications: Uses or operations where failure could cause significant harm or disruption, requiring high reliability and safety.
Distributor: A business that buys products from manufacturers and sells them to retailers or end-users.
TTM: The 12 months ending with the most recent quarterly report.
Portfolio: The collection of investments held by an individual or institution.
Quarter: A three-month period used by companies for financial reporting and analysis.
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