In several new filings with the Securities and Exchange Commission, Carl Icahn reported raising his positions in two companies: Hertz Global Holdings, Inc. (NYSE:HTZ) and Navistar International Corp (NYSE:NAV). In Hertz, the activist investor bought around 2.63 million shares, taking his stake to 51.92 million shares, representing 11.34% of the company’s outstanding stock. In addition, following the acquisition of some 1.94 million shares of Navistar, Mr. Icahn holds 16.27 million shares, equal to 19.99% of the company’s outstanding stock.
In addition to Carl Icahn, another fund has recently raised its exposure to Navistar International Corp (NYSE:NAV). Mark Rachesky‘s MHR Fund Management has bought approximately 515,200 shares at an average price of $30.27 per unit. Following the acquisition, the investor owns around 14.52 million shares, which represent 17.80% of the company’s common stock. The manager of MHR, Mark Rachesky, is a former employee of Carl Icahn’s Icahn Capital.
Navistar International Corp (NYSE:NAV) is a $2.60 billion holding company that is engaged in the manufacturing of commecrial and military trucks and buses, as well as diesel engines, chasis and recreational vehicles. Both investors raised their activist stakes right after the company reported its financial results for the fourth quarter and fiscal year 2014. The results showed a significant improvement with full-year EBITDA amounting to $66 million, versus a loss of $277 million for the previous fiscal year. Moreover, the company’s revenue grew to $10.81 million from $10.78 million and net loss narrowed to $7.60 per share from $11.17 per share for the previous year.
Mr. Icahn has been bullish on Navistar International Corp (NYSE:NAV) for several years now. As previous filings with the SEC show, the investor initiated a stake more than three years ago, initially holding 1.77 million shares. MHR has been holding shares since the second quarter of 2013 and over the following quarters the fund managed to boost its position from some 9.34 million shares that it held initially. In addition, in July, 2013, both Icahn and Rachesky entered into an agreement with Navistar International Corp (NYSE:NAV) that allowed both investors to hold up to 20% of the company’s stock each. Moreover, under the terms of the agreement, the investors nominated two directors that were elected at the 2014 meeting of the shareholders.
On the other hand, while Navistar has been a long-term investment for Mr. Icahn, in Hertz Global Holdings, Inc. (NYSE:HTZ), the billionaire initiated a stake at the end of August. The latest increase comes only a couple of weeks after the previous one, when Mr. Icahn raised his exposure to the stock from 38.80 million shares reported in the latest 13F filing. The fact that Mr. Icahn is bullish on Hertz Global Holdings, Inc. (NYSE:HTZ) and keeps raising its stake shows commitment to the stock. The CEO of Icahn Capital was also involved in the recent replacement of CEO. After Mark Frissora stepped down for personal reasons (although the board was pressured by Mr. Icahn and other shareholders to remove him), the board appointed John P. Tague.
Moreover, Hertz Global Holdings, Inc. (NYSE:HTZ) has also attracted tha attention of another activist investor, Barry Rosenstein of JANA Partners. JANA holds a 7% stake in the company that amasses 11.38 million shares.
The stocks of both Hertz Global Holdings, Inc. (NYSE:HTZ) and Navistar International Corp (NYSE:NAV) are down since the beginning of the year, on the back of different issues. However, the latest commitment from some of the greatest investors on the Street shows that things might soon change for the better.
Disclosure: none
