Carl Icahn (Trades, Portfolio) has revealed another addition to his Icahn Enterprises LP (IEP, Financial) holding according to GuruFocus’ Real-Time Picks, a Premium feature.
Icahn is known for taking activist positions in undervalued, struggling companies and working with management in order to improve profitability as well as unlock value for shareholders. He seeks to avoid consensus thinking and believes the momentum with trends will always fall apart.
On Sept. 29, Icahn purchased an additional 9.47 million Icahn Enterprises (IEP, Financial) shares to boost the holding by 3.99%. On the day of the transaction, the shares traded at an average price of $49.90. Overall, the purchase had a 1.91% impact on the equity portfolio and GuruFocus estimates Icahn's total loss on the holding has slimmed to 1.2%.
Icahn Enterprises is a provider of diversified business services in the United States. The company operates its business through varied segments, which include Investment, Automotive, Energy, Food Packaging, Metals, Real Estate, Pharma and Home Fashion. Among these, the energy segment derives maximum revenue from the company. Geographically, it generates maximum revenue from the United States.
As of Oct. 4, the stock was trading at $52.95 per share with a market cap of $13.99 billion. According to the GF Value Line, the stock is trading at a fair value rating.
GuruFocus gives the company a financial strength rating of 4 out of 10, a profitability rank of 4 out of 10 and a valuation rank of 2 out of 10. There are currently four severe warning signs issued for new long-term debt, a declining gross margin, declining revenue per share and an Altman Z-Score placing the company in the distress column. Despite the debt warning sign, the company’s cash-to-debt ratio of 1.62 ranks better than 71.85% of industry competitors.
Icahn maintains 93.42% of shares outstanding of Icahn Enterprises (IEP, Financial). Murray Stahl (Trades, Portfolio) is currently the only other guru shareholder with 0.22% of shares outstanding.
Portfolio overview
Icahn’s portfolio contains 17 stocks with no new holdings. It was valued at $24.29 billion and has seen a turnover rate of 4%. Top holdings include Icahn Enterprises, Occidental Petroleum Corp. (OXY, Financial), Cheniere Energy Inc. (LNG, Financial), CVR Energy Inc. (CVI, Financial) and Newell Brands Inc. (NWL, Financial).
The top sectors represented in his portfolio are industrials (59.99%), energy (18.13%) and technology (7.61%).
