With an estimated net worth of $21.9 billion, Carl Icahn (Trades, Portfolio) can do big things in many ways, and his third-quarter transactions prove it.
Icahn’s most noteworthy third-quarter transaction was the addition of 27,471,241 shares to his stake in Cheniere Energy Inc. (LNG, Financial), a Houston-based developer of liquid natural gas terminals, for an average price of $61.88 per share. The transaction had a 4.76% impact on Icahn’s portfolio.
That purchase increased Icahn’s stake by more than 2,500%, elevating the stock to fifth-most valuable in Icahn’s portfolio. The guru has made several additional purchases since.
Cheniere Energy has a market cap of $8.84 billion and an enterprise value of $25.84 billion. It has a P/S of 30.8. GuruFocus has given Cheniere Energy a Financial Strength rating of 5/10 and a Profitability and Growth rating of 2/10.
At the end of the third quarter, Icahn was Cheniere Energy’s largest shareholder among the gurus with 28,546,241 shares in his portfolio. Seth Klarman (Trades, Portfolio), Steve Mandel (Trades, Portfolio), John Griffin (Trades, Portfolio) and Andreas Halvorsen (Trades, Portfolio) also added to their stakes in Cheniere Energy in the third quarter.
Cheniere Energy sold for $37.25 per share Thursday.
Cheniere Energy began production at its liquefied natural gas export terminal at Sabine Pass in Louisiana on Wednesday. The terminal is expected to be the first in the U.S. to export LNG produced in U.S. shale formations.
Icahn also acquired a 100 million-share stake in Freeport-McMoRan Inc. (FCX, Financial), a Phoenix-based producer of copper and gold, for an average price of $12 per share, making it the eighth-most valuable stake in his portfolio. The acquisition had a 3.48% impact on Icahn’s portfolio and prompted speculation about Icahn’s intentions.
Freeport-McMoRan has a market cap of $7.79 billion and an enterprise value of $32.41 billion. It has a forward P/E of 38.0, a P/B of 0.7 and a P/S of 0.4. GuruFocus has given Freeport-McMoRan a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10.
With the acquisition, Icahn is Freeport-McMoRan’s largest shareholder among the gurus. No other gurus made Freeport-McMoRan a new buy in the third quarter, but Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) added to existing stakes in their portfolios.
Freeport-McMoRan sold for $6.77 per share Thursday.
Icahn sold his 46,271,370-share stake in eBay Inc. (EBAY, Financial), a San Jose, California-based ecommerce company, for an average price of $26.89 per share. The divestiture had a -3.28% impact on Icahn’s portfolio.
eBay has a market cap of $33.07 billion and an enterprise value of $35.2 billion. It has a P/E of 15.0, a forward P/E of 14.0, a P/B of 5.1 and a P/S of 1.9. GuruFocus has given eBay a Financial Strength rating of 7/10 and a Profitability and Growth rating of 10/10.
Yacktman Fund (Trades, Portfolio), Yacktman Focused Fund (Trades, Portfolio), Jana Partners (Trades, Portfolio), Donald Yacktman (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Jim Simons (Trades, Portfolio), John Burbank (Trades, Portfolio) and Ruane Cunniff (Trades, Portfolio) also sold their stakes in eBay in the third quarter.
eBay sold for $27.48 per share Thursday.
Icahn reduced his stake in Hologic Inc. (HOLX, Financial), a Bedford, Massachusetts-based company engaged in women’s health diagnostic and medical imaging systems, by nearly 18%. Icahn sold 6 million shares for an average price of $39.66 per share. The transaction had a -0.73% impact on Icahn’s portfolio.
Hologic has a market cap of $11.05 billion and an enterprise value of $14.2 billion. It has a P/E of 83.7, a forward P/E of 21.9, a P/B of 5.3 and a P/S of 4.2. GuruFocus has given Hologic a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Kahn Brothers (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) also reduced their stakes in Hologic in the third quarter.
Hologic sold for $38.69 per share Thursday.
Icahn added to his stake in Icahn Enterprises LP (IEP, Financial), Icahn’s New York-based conglomerate, by about 2%. Icahn acquired 2,265,928 shares for an average price of $75.34 per share. The deal had a 0.54% impact on Icahn’s portfolio and raised Icahn’s stake to 114,551,382 shares. The guru purchased an additional 2,482,436 shares on Dec. 24.
Icahn Enterprises has a market cap of $7.87 billion and an enterprise value of $11.5 billion. It has a forward P/E of 10.9, a P/B of 1.5 and a P/S of 0.5. GuruFocus has given Icahn Enterprises a Financial Strength rating of 3/10 and a Profitability and Growth rating of 6/10.
No other gurus bought shares of Icahn Enterprises in the third quarter, but Murray Stahl (Trades, Portfolio) reduced his stake by nearly 3%.
Icahn Enterprises sold for $61.3 per share Thursday.
Icahn acquired a 1,361,326-share stake in American International Group Inc. (AIG, Financial), a New York-based insurance and financial services company, for an average price of $61.12 per share. The transaction had a 0.28% impact on Icahn’s portfolio.
American International Group has a market cap of $77.14 billion and an enterprise value of $94.5 billion. It has a P/E of 18.4, a forward P/E of 12.1, a P/B of 0.8 and a P/S of 1.4. GuruFocus has given American International Group a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10.
Caxton Associates (Trades, Portfolio) also made American International Group a new buy in the third quarter, acquiring a 50,000-share stake.
American International Group sold for $61.97 per share Thursday.
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