During the second quarter, activist investor Carl Icahn (Trades, Portfolio) added two new stakes to his portfolio and sold out his holding in Netflix (NFLX, Financial), according to data reported by GuruFocus Real Time Picks.
Icahn purchased 14,967,373 shares of Tegna (TGNA, Financial) for an average price of $28.79 per share. Tegna is an international media and marketing solutions company that reaches more than 110 million people per month.
The stock declined 8% over the past year, closing at $25.44 on Aug. 14, with a current P/E ratio of 5.65. Tegna is undervalued according to the Peter Lynch earnings line, which is at $70.50 based on first-quarter earnings data.
Over the past five years, Tegna’s annual growth rate was 1.5%, while EBITDA grew by 7.7%. In 2014, the company reported earnings per share of $4.58, a large improvement over EPS of $1.66 the year before. Tegna pays a dividend yield of 3.14%, with a payout ratio of 18%, indicating there is room to grow the dividend in the future.
Icahn also bought 1,075,000 shares of Cheniere Energy (LNG, Financial) at an average price of $74.94 per share during the quarter. He also bought an additional 18,278,530 shares on Aug. 7 for $70.35 per share.
Cheniere is engaged in the liquefied natural gas business and owns and operates the Sabine Pass LNG terminal on the Gulf Coast. In 2014, the company reported loss per share of $2.44, down from loss per share of $2.32 the year before.
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