Billionaire Carl Icahn’s Top 10 Stocks

7. Dana Incorporated (NYSE:DAN)

Icahn Capital LP’s Equity Stake: $173.15 Million

Number of Hedge Fund Holders: 25

Dana Incorporated (NYSE:DAN) is a consumer cyclical company that provides power conveyance and energy management solutions for vehicles and machinery. It offers drive systems like driveshafts, transmissions, wheel and track drives, and motion systems such as winches.

Dana Incorporated (NYSE:DAN) delivered solid second-quarter results despite rising inflation and a dip in demand for electric vehicles (E.V.s). The firm’s revenue stayed on par with the previous year, reaching $2.7 billion, and its adjusted EBITDA was strong at $244 million. Nonetheless, Dana’s cash flow of $104 million dropped by $30 million compared to the last quarter, attributed to changes in payment schedules.

The firm’s financial projections for the entire year have been slightly adjusted. With a narrower sales range but a 33% increase in the expected cash flow, the firm showcases optimism in its operational strength and market approach.

Even with reduced sales forecasts, Dana Incorporated (NYSE:DAN) anticipates fulfilling its promise to generate $925 million in profits. The firm is persistently acquiring new clients in various regions in conventional, mixed, and electric vehicle sectors.

Dana has consistently paid dividends for 13 years, and its dividend yield is currently quite appealing at 3.64%. Moreover, Dana’s liquid assets surpass its immediate financial commitments, showing a strong financial stance in handling short-term debts.

Dana Incorporated (NYSE:DAN) has traded at a price-to-book value of 1.02 over the last year, ending in Q2 2024. Although the company has faced challenges in making profits over the past year, with gross profit margins dipping to 8.45%, analysts are optimistic that it will regain profitability this year, which might prompt investors to reassess the company’s stock.

According to Insider Monkey’s second-quarter database, 25 hedge funds were bullish on Dana Incorporated (NYSE:DAN), compared to 27 funds in the prior quarter. Carl Icahn’s Icahn Capital LP is the biggest position holder in the company, with 14.29 million shares worth $173.15 million.