In this article, we discuss 5 favorite stocks of activist Carl Icahn. If you want to see more of his top holdings, click 10 Favorite Stocks of Activist Billionaire Carl Icahn.
5. Bausch Health Companies Inc. (NYSE:BHC)
Icahn Capital LP’s Stake Value: $958,650,000
Percentage of Icahn Capital LP’s 13F Portfolio: 4.30%
Number of Hedge Fund Holders: 53
Bausch Health Companies Inc. (NYSE:BHC) is based in Laval, Canada, operating as a manufacturer of pharmaceuticals, medical devices, and over-the-counter drugs for eye health, gastroenterology, and dermatology. In Q4 2021, Carl Icahn’s Icahn Capital LP held 34.7 million shares of Bausch Health Companies Inc. (NYSE:BHC), worth $958.65 million, representing 4.30% of the total 13F securities. Icahn boosted his stake in the company by 2% in the fourth quarter.
On March 29, Bausch Health Companies Inc. (NYSE:BHC) announced its plans to reduce debt by $200 million by paying off its senior secured term loans on March 31, 2022, using cash from operating activities.
RBC Capital analyst Douglas Miehm on February 1 maintained an Outperform rating on Bausch Health Companies Inc. (NYSE:BHC) but lowered the firm’s price target on the shares to $34 from $40. The analyst updated his model to account for the filing of preliminary S-1 and prospectus by Bausch Health Companies Inc. (NYSE:BHC) regarding the Bausch+Lomb IPO. Due to the recent share price weakness, the analyst remains “constructive” on the stock’s outlook.
According to Insider Monkey’s Q4 data, 53 hedge funds were long Bausch Health Companies Inc. (NYSE:BHC), up from 39 funds in the preceding quarter. John Paulson’s Paulson & Co is a significant shareholder of the company, holding about 26 million shares worth $713.4 million.
Here is what Miller Value Partners has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q1 2021 investor letter:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosed a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
4. CVR Energy, Inc. (NYSE:CVI)
Icahn Capital LP’s Stake Value: $1,196,850,000
Percentage of Icahn Capital LP’s 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 13
CVR Energy, Inc. (NYSE:CVI) is a subsidiary of Icahn Enterprises L.P. (NASDAQ:IEP), operating in the petroleum refining and nitrogen fertilizer markets in the United States. Carl Icahn, as of Q4 2021, owns more than 71 million shares of CVR Energy, Inc. (NYSE:CVI), worth $1.19 billion, representing 5.36% of the total 13F portfolio.
On February 1, Citi analyst Prashant Rao reiterated a Neutral rating on CVR Energy, Inc. (NYSE:CVI) and lowered the firm’s price target on the shares to $21 from $23.
In 2021, CVR Energy, Inc. (NYSE:CVI)’s full-year revenue came in at $7.2 billion, compared to $3.9 billion in 2020. Net income in 2021 stood at $25 million, a sharp rebound from the loss of $256 million in the preceding year.
According to Insider Monkey’s Q4 database, 13 hedge funds placed long bets on CVR Energy, Inc. (NYSE:CVI), compared to 16 funds in the prior quarter. The total stakes held in the fourth quarter of 2021 amounted to $1.2 billion. Renaissance Technologies is a notable shareholder of the company, with a $10.3 million position.
3. Occidental Petroleum Corporation (NYSE:OXY)
Icahn Capital LP’s Stake Value: $1,304,560,000
Percentage of Icahn Capital LP’s 13F Portfolio: 5.85%
Number of Hedge Fund Holders: 58
Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company engaged in the development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Carl Icahn’s fund owned 45 million Occidental Petroleum Corporation (NYSE:OXY) shares in the fourth quarter of 2021, worth $1.30 billion, representing 5.85% of the 13F holdings.
In 2021, Occidental Petroleum Corporation (NYSE:OXY)’s revenue for the year totaled approximately $26 billion, up from $17.8 billion in the earlier year. The company suffered a net loss of roughly $15 billion in 2020, and the income rebounded to $2.3 billion in 2021.
On February 24, Occidental Petroleum Corporation (NYSE:OXY) declared a $0.13 per share quarterly dividend, a 1200% increase from its prior dividend of $0.01. The dividend was distributed on April 15.
Barclays analyst Jeanine Wai raised the firm’s price target on Occidental Petroleum Corporation (NYSE:OXY) to $74 from $69 and reiterated an Overweight rating on the shares on April 22. The analyst forecasts relatively in-line Q1 results.
Among the hedge funds tracked by Insider Monkey, 58 funds were long Occidental Petroleum Corporation (NYSE:OXY) at the end of December 2021, compared to 60 funds in the prior quarter. Rajiv Jain’s GQG Partners is a significant shareholder of the company, with approximately 23 million shares worth $666 million.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
2. Cheniere Energy, Inc. (NYSE:LNG)
Icahn Capital LP’s Stake Value: $1,639,820,000
Percentage of Icahn Capital LP’s 13F Portfolio: 7.35%
Number of Hedge Fund Holders: 52
Cheniere Energy, Inc. (NYSE:LNG) was incorporated in 1983 and is headquartered in Houston, Texas. It operates as an energy infrastructure company in the United States. In the fourth quarter of 2021, Carl Icahn held more than 16 million Cheniere Energy, Inc. (NYSE:LNG) shares, worth $1.6 billion, representing 7.35% of the total 13F securities.
On April 26, Cheniere Energy, Inc. (NYSE:LNG) declared a $0.33 per share quarterly dividend, in line with previous. The dividend is payable on May 17, for shareholders of record on May 10.
Cheniere Energy, Inc. (NYSE:LNG)’s full-year revenue for 2021 stood at $17.5 billion, compared to $9.2 billion in the last year. The net loss in 2021 increased to $2.3 billion from $85 million in 2020.
Barclays analyst Marc Solecitto on March 14 raised the price target on Cheniere Energy, Inc. (NYSE:LNG) to $160 from $131 and kept an Overweight rating on the shares. The analyst noted that sentiment around natural gas “notably improved” and recent management conversations centered around the “robust” liquefied natural gas macro backdrop, growth outlook, and capital allocation.
According to Insider Monkey’s Q4 data, Cheniere Energy, Inc. (NYSE:LNG) was found in the public stock portfolios of 52 hedge funds, compared to 49 funds in the earlier quarter. Michael Lowenstein’s Kensico Capital is a notable shareholder of the company, with 2.3 million shares worth $241.5 million.
Here is what ClearBridge Global Infrastructure Value Strategy has to say about Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2021 investor letter:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
1. Icahn Enterprises L.P. (NASDAQ:IEP)
Icahn Capital LP’s Stake Value: $12,746,974,000
Percentage of Icahn Capital LP’s 13F Portfolio: 57.18%
Number of Hedge Fund Holders: 3
Carl Icahn is the chairman and controlling stakeholder of Icahn Enterprises L.P. (NASDAQ:IEP), an American conglomerate that focuses its investments across multiple sectors including energy, automotive, food packaging, metals, real estate, and home fashion.
Securities filings for Q4 2021 reveal that Carl Icahn owns over 257 million shares of Icahn Enterprises L.P. (NASDAQ:IEP), worth $12.7 billion, representing 57.18% of the total 13F holdings. Icahn’s hedge fund boosted its stake in the company by 5% in Q4 2021. Apart from Icahn Capital LP, Murray Stahl’s Horizon Asset Management and Ken Griffin’s Citadel Investment Group were bullish on Icahn Enterprises L.P. (NASDAQ:IEP) in the December quarter.
In 2021, Icahn Enterprises L.P. (NASDAQ:IEP)’s revenue for the year was $11.20 billion, up from $6.15 billion in the preceding year. The net loss in 2021 came in at $604 million, compared to the 2020 loss of $1.62 billion.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire David Harding and 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.
