SUNNY ISLES BEACH, FL—Carl Icahn, through various entities, has increased his stake in CVR Partners, LP (NYSE:UAN) with a series of recent purchases totaling approximately $3.8 million. The transactions, disclosed in a recent SEC filing, involved the acquisition of 55,552 common units over three consecutive days.
On November 6, Icahn acquired 9,382 common units at a price of $68.75 per share. This was followed by the purchase of 22,260 units on November 7 at $69.01 per share. The buying spree concluded on November 8 with the acquisition of 23,910 units at $68.76 per share. These transactions reflect a price range between $68.75 and $69.01 per share.
The acquisitions were made through American Entertainment Properties Corp., IEP Energy Holding LLC, and other entities indirectly controlled by Icahn. Post-transaction, Icahn's entities hold a total of 3,892,000 shares in CVR Partners.
In other recent news, CVR Partners has reported its financial results for the third quarter of 2024. The company announced net sales of $125 million, net income of $4 million, and EBITDA of $36 million. A third-quarter distribution of $1.19 per common unit was declared, highlighting the company's financial stability.
CVR Partners also reported a strong operational performance with consolidated ammonia plant utilization at 97%. The company's ammonia and UAN sales volumes remained consistent with the previous year, with ammonia prices up by 9% and UAN prices up by 3%.
However, the company experienced some unplanned downtime at the upgrading units, affecting UAN sales volumes. Despite this, CVR Partners is optimistic about its Q4 2024 outlook, estimating an ammonia utilization rate of between 92% and 97%, and projecting total capital spending to be between $19 million and $23 million.
These recent developments underscore the company's commitment to operational efficiency and market responsiveness, even amidst geopolitical risks and market fluctuations.
InvestingPro Insights
Carl Icahn's recent investment in CVR Partners, LP (NYSE:UAN) aligns with several positive indicators highlighted by InvestingPro. The company's attractive valuation metrics and dividend policies may have influenced Icahn's decision to increase his stake.
According to InvestingPro data, CVR Partners boasts a P/E ratio of 13.87, suggesting a potentially undervalued stock. This is complemented by an InvestingPro Tip noting that the company's valuation implies a strong free cash flow yield, which could be attractive to value investors like Icahn.
The company's dividend policy is particularly noteworthy. CVR Partners offers a significant dividend yield of 6.89%, as of the most recent data. An InvestingPro Tip further reveals that the company has raised its dividend for three consecutive years, demonstrating a commitment to shareholder returns that aligns with Icahn's investment strategy.
Additionally, CVR Partners has shown profitability over the last twelve months, with a gross profit of $197.87 million and an EBITDA of $166.74 million. This financial health is underscored by another InvestingPro Tip indicating that the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips on CVR Partners, providing deeper insights into the company's financial position and market performance.
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