In this article, we discuss long-term returns of Carl Icahn’s 10 activist targets. You can read our detailed analysis of Icahn’s activist targets and their historical performance, and go directly to read Long-Term Returns of Carl Icahn’s Activist Targets.
10. Caesars Entertainment, Inc. (NASDAQ:CZR)
Stock Return: 34.82%
S&P 500 Return: 16.98%
Investment date: 2/19/2019
Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company that manages domestic properties with slot machines, video lottery terminals, and e-tables across the US. In 2019 Icahn scooped nearly 10% of the company’s shares, giving him control of the board and in the driver’s seat to plot its next move. He would later increase his stakes in the casino company to 15.6%.
With control of the board, Icahn would engineer the stepping down of Mark Frissora as CEO after being given three seats on the board. Through his activism, Eldorado would come calling and acquire Caesars Entertainment, Inc. (NASDAQ:CZR) for $17.3 billion.
Icahn was one of the beneficiaries as he gained 34.82% from his investment against a gain of 16.98% for the S&P 500 over the same period.
9. HP Inc. (NYSE:HPQ)
Stock Return: -13.02%
S&P 500 Return: – 0.40%
Investment date: 12/4/2019
HP Inc. (NYSE:HPQ) is a technology company that designs, manufactures, and sells personal computing devices and other accessing devices, including laptops, PCE, and related technologies solutions and services. Icahn sent shockwaves in 2019 after disclosing a $1.2 billion stake in the company while pushing for a merger with Xerox.
Icahn insisted that a merger between the two printer makers made sense and could yield significant profits for investors. At the time, he owned a 10.6% stake in Xerox and a 4.24% stake in HP Inc. (NYSE:HPQ). He would chastise the board in 2019 after they rejected Xerox’s takeover bid while insisting it was not in the best interest of shareholders. Xerox abandoned its $35B hostile bid, a move that caused Icahn to trim his stakes in HP.
When Icahn discarded all his stakes in 2020, his investment was down 13.02% compared to a 0.40% loss of the S&P 500.
8. Occidental Petroleum Corporation (NYSE:OXY)
Stock Return: 64.05%
S&P 500 Return: 76.83%
Investment date: 3/12/2020
Occidental Petroleum Corporation (NYSE:OXY) is an international oil and gas exploration and production company and a leading producer and largest acreage holder in the Permian basin. Icahn built a 10% stake in the company triggering a bitter standoff with the company over ways to unlock shareholder value.
Icahn had been critical of Occidental Petroleum Corporation (NYSE:OXY) outbidding Chevron on the acquisition of Anadarko Petroleum for $10 billion. He had also been pushing for the ouster of CEO Vicki Hollub. The company came under immense pressure as oil prices plunged in 2020 at the height of the pandemic.
Icahn would exit his stakes in the company as its shares started edging higher, having accrued a profit of over $1 billion n in the sock. Icahn would end up generating a return of 64.05% in the stock, slightly below the 76.83% gain of the S&P 500 Over the two years she held the stock.
7. Delek US Holdings, Inc. (NYSE:DK)
Stock Return: 38.68%
S&P 500 Return: 74.36%
Investment date: 3/19/2020
Delek US Holdings, Inc. (NYSE:DK) is an integrated downstream energy business that operates under three segments of refining, logistics, and retail. In 2020 Icahn-controlled CVR Energy attempted to acquire Delek thanks to a 15% controlling stake in the company. The activist investor had succeeded in installing new board members and made major changes in the company.
Nevertheless, CVR started exiting its position in Delek after failing to engineer a buyout of Delek’s US holdings. Icahn would trim his position significantly after reaching an agreement to sell $64 million in Delek shares to the company.
Icahn exited his full position in Delek US Holdings, Inc. (NYSE:DK) in 2022 after generating a 38.68% return over two years, nearly half the 74.36% gain of the S&P 500 over the same period.
6. Bausch Health Companies Inc. (NYSE:BHC)
Stock Return: -67.92%
S&P 500 Return: 14.08%
Investment date: 2/11/2021
Bausch Health Companies Inc. (NYSE:BHC) is a diversified pharmaceutical company that develops manufactures, and markets gastroenterology, hepatology, neurology, and dermatology products. Icahn started his association with the company in 2021 with a 7.8% stake and consequently pushed for seats on the board in the race to be in the driver’s seat.
Bausch Health Companies Inc. (NYSE:BHC) would agree to Icahn’s demands to expand the board of directors with two designees from Carl C Icahn and his affiliated entities. Icahn also agreed to a customary standstill, meaning he could no longer increase his stake in the company or launch a proxy fight for a certain period.
While Icahn still maintains its stake in Bausch Health Companies Inc. (NYSE:BHC), its value has declined by about 67.92% while S&P 500 gained 14.08%.
5. Southwest Gas Holdings, Inc. (NYSE:SWX)
Stock Return: – 6.34%
S&P 500 Return: 8.74%
Investment date: 10/4/2021
Through its subsidiary Southwest Gas Holdings, Inc. (NYSE:SWX) engages in purchasing, distributing, and transporting natural gas. The company delivers natural gas to over two million customers in the US. Carl Icahn owns about a 15.86% stake in the company, valued at over $732 million.
After a fierce proxy battle, Icahn reached an agreement with Southwest Gas Holdings, Inc. (NYSE:SWX) in 2022, resulting in him being awarded three slots on the board. The company also agreed to review a full range of strategic alternatives, including the sale of the company or the sale of one or more of its business units.
While Icahn still holds a stake in the company, his stake is down 6.34% compared to the S&P 500 gain of 8.74%.
4. Dana Incorporated (NYSE:DAN)
Stock Return: -15.61%
S&P 500 Return: – 4.48%
Investment date:1/7/2022
Dana Incorporated (NYSE:DAN) is a company that provides power conveyance and energy management solutions for vehicles and machinery. It operates under Light Vehicle Drive Systems, Commercial Vehicle Drive, and Motion Systems. It is one of Icahn’s most recent investments, especially in the auto industry.
With an investment in Dana Incorporated (NYSE:DAN) in early 2022, Icahn was also handed board seats in the company and agreed to abide by certain standstill provisions until he no longer has directors on the board. The investments are yet to materialize in returns and are down by about 15.61%.
3. McDonald’s Corporation (NYSE:MCD)
Stock Return: -2.57%
S&P 500 Return: – 12.96%
Investment date: 2/20/2022
McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants in the US and around the world. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches, and nuggets. Icahn invested in the company in 2022 and started pushing for his own candidates on the board.
Unlike in his previous investment, the activist investor wanted to change how pigs whose meat goes into McDonald’s Corporation (NYSE:MCD)’s sausage patties are treated. While owning 200 shares, he proposed two names to the board. However, he lost his proxy fight, signaling investors had not bought into his animal welfare concern.
Icahn did offload his stakes in the company but ended with a loss of 2.57% as the S&P 500 declined 12.96% in the same period.
2. The Kroger Co. (NYSE:KR)
Stock Return: -16.99%
S&P 500 Return: – 18.27%
Investment date: 3/9/2022
The Kroger Co. (NYSE:KR) is a food and drug retailer in the United States. It operates food and drug stores and multi-department stores across the United States. Icahn invested in the company in early 2022 and consequently submitted a plan to nominate two candidates for the board. The investor had previously voiced his concerns about animal welfare and the use of gestation crates in pork production.
He has also taken issue with The Kroger Co. (NYSE:KR)’s egregious wage gaps between the CEO and other employees. Nevertheless, Icahn has insisted that his proxy fight with the board is not to profit but to make a difference in the glaring injustices at the company.
His investment in The Kroger Co. (NYSE:KR) has lost about 16.99% since 2022, a period in which the S&P 500 has also lost 18.27%.
1. Crown Holdings, Inc. (NYSE:CCK)
Stock Return: 11.69%
S&P Returns: 20%
Investment date: 11/3/2022
Crown Holdings, Inc. (NYSE:CCK) makes and sells packaging products for consumer and industrial goods. Most of its earnings come from beverage cans, but it also offers food cans, transit packaging, and protective packaging. It serves various industries such as metals, construction, agriculture, and corrugated.
Carl Icahn had a stake in Crown Holdings. He wanted Crown Holdings, Inc. (NYSE:CCK) to sell its non-core businesses, buy back shares, and focus on its growing beverage can segment. Another activist, Impactive Capital, also supported this plan and sees environmental benefits from replacing plastic and glass with aluminum cans. Crown’s board resisted Icahn’s pressure and adopted a poison pill. Crown’s CEO admitted he was caught off guard by the recent challenges.
To prevent a possible proxy contest with Carl Icahn in December 2022, the company agreed to appoint his two nominees, Andrew Teno and Jesse Lynn, to its board. The board expanded to 13 members and included the new directors as part of the company’s slate of nominees for the 2022 annual meeting.
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