On August 22, 2023, renowned investor Carl Icahn (Trades, Portfolio) executed a significant transaction involving CVR Energy Inc (CVI, Financial). This article provides an in-depth analysis of the transaction, the guru's investment philosophy, and the traded company's financial performance. The goal is to provide valuable insights to our value investor members and attract more traffic to GuruFocus.
Details of the Transaction
Carl Icahn (Trades, Portfolio) reduced his stake in CVR Energy Inc by 396,808 shares, representing a -0.56% change in his holdings. The transaction, executed at a trade price of $34.78 per share, had a -0.09% impact on his portfolio. Following the transaction, Icahn holds a total of 70,819,910 shares in CVR Energy Inc, accounting for 15.92% of his portfolio and 70.43% of the company's stock.
Profile of the Guru: Carl Icahn (Trades, Portfolio)
Carl Icahn (Trades, Portfolio) is a prominent activist investor known for taking significant stakes in public companies and advocating for change. He invests through three vehicles: Icahn Partners, American Real Estate Partners, and Icahn Management LP. GuruFocus tracks the third portfolio, which encompasses all stocks owned by Icahn Capital Management. Icahn's investment philosophy revolves around purchasing undervalued, out-of-favor assets, improving them, and selling them when they regain favor. His portfolio comprises 15 stocks, with a total equity of $15.48 billion. The top holdings include Icahn Enterprises LP(IEP, Financial), CVR Energy Inc(CVI, Financial), FirstEnergy Corp(FE, Financial), Southwest Gas Holdings Inc(SWX, Financial), and Occidental Petroleum Corp(OXY.WS, Financial). The energy and utilities sectors dominate his portfolio.
Overview of the Traded Company: CVR Energy Inc
CVR Energy Inc, a US-based company, operates in the petroleum refining and nitrogen fertilizer manufacturing sectors. The company's business segments include Nitrogen Fertilizer, Other, including intersegment eliminations, and Petroleum. CVR Energy Inc has a market capitalization of $3.49 billion and a PE percentage of 6.59. The company's stock is currently fairly valued, with a GF Value of 31.47 and a Price to GF Value ratio of 1.10. The stock's performance since the transaction has seen a -0.29% change, with an 84.32% gain since its IPO and an 18.36% year-to-date price change.
Analysis of the Traded Stock
The traded stock, CVI, has a GF Score of 74/100, indicating average future performance potential. The company's Financial Strength is ranked 6/10, with a interest coverage of 12.75 and an Altman Z score of 3.55. CVR Energy Inc's Profitability Rank is 7/10, and its Piotroski F-Score is 8, indicating a healthy situation. The company's Operating Margin growth is currently not applicable, and its Growth Rank is 4/10. The GF Value Rank is 3/10, and the Momentum Rank is 8/10.
Comparison with Other Gurus
Other gurus who hold CVR Energy Inc stock include Joel Greenblatt (Trades, Portfolio) and Barrow, Hanley, Mewhinney & Strauss. However, Icahn Capital Management LP, led by Carl Icahn (Trades, Portfolio), holds the largest share.
Conclusion
In conclusion, Carl Icahn (Trades, Portfolio)'s recent transaction involving CVR Energy Inc reflects his investment philosophy of buying undervalued assets and selling them when they regain favor. The transaction has had a minimal impact on his portfolio and the company's stock. CVR Energy Inc's financial performance and the stock's future performance potential indicate a fair valuation and average future performance potential. The transaction's implications for the guru and the traded company will be interesting to observe in the coming months.
