SUNNY ISLES BEACH, FL—Carl Icahn, a prominent investor, has expanded his stake in CVR Partners, LP (NYSE:UAN) through IEP Energy Holding LLC. According to a recent SEC filing, Icahn acquired a total of 19,174 common units over three days, from November 19 to November 21, 2024. The purchases were made at prices ranging from $71.19 to $71.96 per unit, amounting to a total investment of approximately $1.37 million.
The transactions increased Icahn's holdings to 116,029 common units. These acquisitions were made indirectly through American Entertainment Properties Corp., a wholly owned subsidiary, highlighting Icahn's continued interest in the agricultural chemicals sector.
Icahn's investment decisions are often closely watched by investors due to his influence and track record in the market.
In other recent news, CVR Partners has unveiled its financial results for the third quarter of 2024. The company reported net sales of $125 million, a net income of $4 million, and EBITDA of $36 million. Additionally, a third-quarter distribution of $1.19 per common unit was declared. The company's operational performance was robust, with a consolidated ammonia plant utilization of 97%.
In terms of future expectations, CVR Partners anticipates an ammonia utilization rate between 92% and 97% for Q4 2024. However, the company experienced some unplanned downtime at the upgrading units, affecting UAN sales volumes. Despite this, the demand for summer UAN fill and fall ammonia prepay remains strong, and prices for ammonia and UAN have increased since summer.
These are recent developments from CVR Partners, which has consistently demonstrated solid operational performance. The company's financial health is evidenced by its ability to declare a consistent distribution to its unitholders, underlining the stability of its business model amidst market fluctuations.
InvestingPro Insights
Carl Icahn's recent expansion of his stake in CVR Partners, LP (NYSE:UAN) aligns with several positive indicators highlighted by InvestingPro. The company's financial health and shareholder-friendly policies seem to support Icahn's investment decision.
According to InvestingPro data, CVR Partners boasts a market capitalization of $758.27 million and a P/E ratio of 14.42, suggesting a relatively modest valuation compared to its earnings. This is further reinforced by an InvestingPro Tip indicating that the stock's valuation implies a strong free cash flow yield, which could be attractive to value investors like Icahn.
Notably, CVR Partners pays a significant dividend to shareholders, with a current dividend yield of 6.65%. An InvestingPro Tip reveals that the company has raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders. This aligns with another tip highlighting the company's high shareholder yield, which may have factored into Icahn's decision to increase his position.
The company's financial stability is evident from its profitability over the last twelve months and the fact that its liquid assets exceed short-term obligations. These factors, combined with the stock's generally low price volatility, suggest a potentially stable investment in the agricultural chemicals sector.
For investors interested in a deeper analysis, InvestingPro offers additional tips and insights, with 5 more tips available for CVR Partners on the platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.