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CVR Energy (CVI) Key Part of Icahn Portfolio Despite Stake Cut
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Hedge fund billionaire Carl Icahn made headlines after reducing his stake in oil refiner CVR Energy (CVI - Free Report) by more than $144 million earlier this week.
Carl Icahn is well known for his activist investment style. He typically acquires substantial stakes in public companies and champions strategic changes to enhance their value. His investment approach centers around identifying undervalued or out-of-favor assets, revitalizing them, and eventually selling them when they regain favor.
The CVI transaction involved the famed financier selling approximately 4.1 million shares of CVR Energy's common stock at a price of $35.20 apiece. This reduced his ownership stake in the company by 5.79%. Despite this offload, Icahn Enterprises (IEP - Free Report) — the investment vehicle through which Carl Icahn operates — still holds a substantial 66.7 million shares in CVR Energy. In fact, this represents about two-thirds of the company.
The motivation behind Icahn's decision to reduce his stake in CVR Energy may be linked to a Hindenburg Research report from May, in which the research firm issued a short-sell recommendation on Icahn Enterprises. This report had a substantial impact on Icahn's holdings, causing a steep plunge in the value of his shares. Since the report's release, Icahn Enterprises' stock has fallen more than 60%, resulting in a significant erosion in Icahn's net worth.
In conclusion, while Carl Icahn's decision to trim his CVR Energy stake is newsworthy, the company continues to remain a significant part of his holdings. CVR Energy's consistent performance and financial stability make it a noteworthy player in the energy sector.
About CVR Energy
Established in 2006, CVR Energy is a holding firm with a primary involvement in renewable energy, petroleum refining and marketing. Additionally, it has interests in nitrogen fertilizer manufacturing through its stake in CVR Partners. The company places significant emphasis on the development of renewable biofuels, actively participating in the energy transition to reduce carbon emissions. Notably, CVR Energy boasts a robust financial position, with a total liquidity of $937 million.
Zacks Rank & Other Stock Picks
CVR Energy carries a Zacks Rank #1 (Strong Buy) at present.
Apart from CVI, investors interested in the energy sector might also consider the operators mentioned below. These companies too sport a Zacks Rank of 1 currently.
Solaris Oilfield Infrastructure (SOI - Free Report) : It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters at an average of 18.8%.
SOI is valued at around $481.2 million. Solaris Oilfield Infrastructure has seen its shares edge up 3.9% in a year.
Helix Energy Solutions Group (HLX - Free Report) : Over the past 60 days, Helix Energy Solutions Group saw the Zacks Consensus Estimate for 2023 earnings move up 4.3%, indicating 200% year-over-year growth.
Helix Energy Solutions is valued at around $1.7 billion. HLX has seen its shares surge 138.8% in a year.
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CVR Energy (CVI) Key Part of Icahn Portfolio Despite Stake Cut
Hedge fund billionaire Carl Icahn made headlines after reducing his stake in oil refiner CVR Energy (CVI - Free Report) by more than $144 million earlier this week.
Carl Icahn is well known for his activist investment style. He typically acquires substantial stakes in public companies and champions strategic changes to enhance their value. His investment approach centers around identifying undervalued or out-of-favor assets, revitalizing them, and eventually selling them when they regain favor.
The CVI transaction involved the famed financier selling approximately 4.1 million shares of CVR Energy's common stock at a price of $35.20 apiece. This reduced his ownership stake in the company by 5.79%. Despite this offload, Icahn Enterprises (IEP - Free Report) — the investment vehicle through which Carl Icahn operates — still holds a substantial 66.7 million shares in CVR Energy. In fact, this represents about two-thirds of the company.
The motivation behind Icahn's decision to reduce his stake in CVR Energy may be linked to a Hindenburg Research report from May, in which the research firm issued a short-sell recommendation on Icahn Enterprises. This report had a substantial impact on Icahn's holdings, causing a steep plunge in the value of his shares. Since the report's release, Icahn Enterprises' stock has fallen more than 60%, resulting in a significant erosion in Icahn's net worth.
In conclusion, while Carl Icahn's decision to trim his CVR Energy stake is newsworthy, the company continues to remain a significant part of his holdings. CVR Energy's consistent performance and financial stability make it a noteworthy player in the energy sector.
About CVR Energy
Established in 2006, CVR Energy is a holding firm with a primary involvement in renewable energy, petroleum refining and marketing. Additionally, it has interests in nitrogen fertilizer manufacturing through its stake in CVR Partners. The company places significant emphasis on the development of renewable biofuels, actively participating in the energy transition to reduce carbon emissions. Notably, CVR Energy boasts a robust financial position, with a total liquidity of $937 million.
Zacks Rank & Other Stock Picks
CVR Energy carries a Zacks Rank #1 (Strong Buy) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Apart from CVI, investors interested in the energy sector might also consider the operators mentioned below. These companies too sport a Zacks Rank of 1 currently.
Solaris Oilfield Infrastructure (SOI - Free Report) : It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters at an average of 18.8%.
SOI is valued at around $481.2 million. Solaris Oilfield Infrastructure has seen its shares edge up 3.9% in a year.
Helix Energy Solutions Group (HLX - Free Report) : Over the past 60 days, Helix Energy Solutions Group saw the Zacks Consensus Estimate for 2023 earnings move up 4.3%, indicating 200% year-over-year growth.
Helix Energy Solutions is valued at around $1.7 billion. HLX has seen its shares surge 138.8% in a year.