Freeport-Mcmoran Inc (FCX): Billionaire Carl Icahn Praises Recent Moves

Billionaire Carl Icahn‘s Icahn Capital LP recently filed a Form 13D with the Securities and Exchange Commission on Freeport-Mcmoran Inc (NYSE:FCX) in order to report a statement issued on September 13. In the statement, Mr. Icahn applauded Freeport’s management and Board of Directors for its recent moves, which include selling its deepwater assets in the Gulf of Mexico to Anadarko Petroleum Corporation (NYSE:APC) for $2 billion. Mr. Icahn is of the opinion that the company is on its way to successfully halving its net debt from year end 2015, by the end of 2017. At the end of the statement, Carl Icahn concluded by providing support for CEO Richard Adkerson’s recent comments that Freeport is “…open for all strategic moves, whether that means selling assets, [or] selling the company” to create value for all shareholders. Icahn Capital is a large shareholder of the company, as it currently owns 104 million Class B shares.

Freeport-McMoRan is a natural resource company that holds many reserves of gold, cobalt, copper, molybdenum, natural gas, and oil. Since the beginning of the year, the company’s stock has gained 49.93%. In its financial report for the second quarter of 2016, Freeport-McMoRan disclosed a loss per share of $0.02, missing the estimates of a loss per share of $0.01, and revenue of $3.33 billion, also below the estimates of $3.70 billion. There has been a great deal of analyst ratings activity on Freeport-McMoRan’s stock recently. For starters, Morgan Stanley downgraded its rating on it to ‘Underweight’ from ‘Equal Weight’ and lowered its price target to $7.00 from $9.00, while BMO Capital Markets set a price target of $12 on it with a ‘Hold’ rating. Furthermore, Cowen and Company set a price target of $15 on the stock and has a ‘Buy’ rating on it, while Deutsche Bank lowered its price target on it to $12 from $12.50 along with a ‘Hold’ rating.

You can access the original SEC filing by clicking here.

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