Carl Icahn Increases Stake in Southwest Gas Holdings Inc
Renowned investor Carl Icahn (Trades, Portfolio) recently expanded his portfolio with the acquisition of additional shares in Southwest Gas Holdings Inc. This article provides an in-depth analysis of the transaction, the investor's profile, and the traded company's financial performance.
Details of the Transaction
On September 25, 2023, Carl Icahn (Trades, Portfolio) added 44,256 shares of Southwest Gas Holdings Inc to his portfolio at a trade price of $62.44 per share. This transaction increased his total holdings in the company to 11,016,668 shares, representing 4.44% of his portfolio and 15.41% of the company's outstanding shares. The trade had a minor impact of 0.02% on Icahn's portfolio.
Profile of Carl Icahn (Trades, Portfolio)
Carl Icahn (Trades, Portfolio) is a prominent activist investor known for acquiring significant stakes in public companies and advocating for change. He operates through three investment vehicles: Icahn Partners, American Real Estate Partners, and Icahn Management LP. This article focuses on the portfolio of Icahn Capital Management.
Icahn's investment philosophy revolves around purchasing undervalued assets, often out of bankruptcy, improving them, and selling them when they regain favor. He currently holds 15 stocks in his portfolio, with a total equity of $15.48 billion. His top holdings include Icahn Enterprises LP, CVR Energy Inc, FirstEnergy Corp, Southwest Gas Holdings Inc, and Occidental Petroleum Corp. The energy and utilities sectors dominate his portfolio.
About Southwest Gas Holdings Inc
Southwest Gas Holdings Inc (NYSE:SWX) is a leading utility company in the American Southwest. The company primarily engages in purchasing, distributing, and transporting natural gas. It operates through two segments: natural gas operations and Utility Infrastructure Services. The company has a market capitalization of $4.43 billion.
Despite a PE percentage of 0.00, indicating the company is currently at a loss, the GF Value suggests a possible value trap, urging investors to think twice. The stock's price to GF Value is 0.69, and it has experienced a -0.64% change in price since the transaction. The company's GF Score is 76/100, suggesting a likely average performance in the future.
Stock Performance and Rankings
Southwest Gas Holdings Inc has a balance sheet rank of 4/10, a profitability rank of 6/10, and a growth rank of 6/10. The company's GF Value Rank is 10/10, while its momentum rank is 4/10. The Piotroski F-Score is 3, and the Altman Z score is 0.97, indicating potential financial distress. The company's cash to debt ratio is 0.04, ranking 402nd in the industry.
Industry Overview: Utilities - Regulated
The utilities - regulated industry has been experiencing steady growth, with Southwest Gas Holdings Inc performing relatively well within the sector. The company's interest coverage is 1.76, ranking 355th in the industry. However, its ROE and ROA ranks are 467 and 461, respectively, indicating room for improvement.
Other Gurus' Involvement
Other notable investors, including Mario Gabelli (Trades, Portfolio), HOTCHKIS & WILEY, and Keeley-Teton Advisors, LLC (Trades, Portfolio), also hold shares in Southwest Gas Holdings Inc. Their involvement further underscores the potential value of the stock.
Conclusion
In conclusion, Carl Icahn (Trades, Portfolio)'s recent acquisition of additional shares in Southwest Gas Holdings Inc is a strategic move that aligns with his investment philosophy. Despite the company's current financial performance, its potential for growth and the involvement of other prominent investors make it a stock to watch. As always, investors are advised to conduct thorough research before making investment decisions.
This article first appeared on GuruFocus.
