Renowned investor Carl Icahn (Trades, Portfolio) has recently made a significant transaction in his portfolio. On August 10, 2023, Icahn reduced his stake in Newell Brands Inc (NWL, Financial), a leading global consumer goods company. This article will delve into the details of this transaction, provide an overview of Icahn's investment philosophy and portfolio, and analyze Newell Brands Inc's financial health and industry position.
Details of the Transaction
On August 10, 2023, Carl Icahn (Trades, Portfolio) executed a reduction in his holdings of Newell Brands Inc. He sold 4,553,883 shares at a price of $10.68 per share, resulting in a 15.19% decrease in his holdings. This transaction had a -0.22% impact on his portfolio. Despite the reduction, Icahn still holds a substantial 25,431,880 shares in the company, representing 1.24% of his portfolio and 6.14% of Newell Brands Inc's total shares.
Profile of Carl Icahn (Trades, Portfolio)
Carl Icahn (Trades, Portfolio) is a prominent activist investor known for taking significant stakes in public companies and pushing for change. He invests through three vehicles: Icahn Partners, American Real Estate Partners, and Icahn Management LP. Icahn's investment philosophy revolves around buying undervalued, out-of-favor assets, improving them, and selling them when they regain favor. As of August 12, 2023, Icahn's portfolio consists of 17 stocks, with a total equity of $22.03 billion. His top holdings include Icahn Enterprises LP (IEP, Financial), CVR Energy Inc (CVI, Financial), FirstEnergy Corp (FE, Financial), Southwest Gas Holdings Inc (SWX, Financial), and Occidental Petroleum Corp (OXY.WS, Financial). The energy and utilities sectors dominate his portfolio.
Overview of Newell Brands Inc
Newell Brands Inc, based in the USA, is a global consumer goods company with a market cap of $4.38 billion. The company operates through several segments, including Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, Outdoor and Recreation, and Home and Commercial Solutions. Despite its diverse operations, the Learning and Development segment generates the most revenue. As of August 12, 2023, the company's stock price stands at $10.57. However, with a PE percentage of 0.00, the company is currently at a loss. According to GuruFocus's GF Valuation, the stock is potentially a value trap, with a GF Value of 17.85 and a Price to GF Value ratio of 0.59.
Stock Performance and Valuation
Newell Brands Inc's stock has seen a gain of 442.05% since its IPO in 1987, despite a year-to-date decrease of 21.47%. The stock's GF Score is 63/100, indicating a potential for poor future performance. The company's Financial Strength is ranked 4/10, while its Profitability Rank is 6/10. The Growth Rank is 2/10, indicating a relatively low growth potential. However, the GF Value Rank is 8/10, suggesting that the stock is undervalued.
Financial Health and Industry Position
Newell Brands Inc's financial health is reflected in its Piotroski F-Score of 4 and an Altman Z score of 0.69. The company's cash to debt ratio is 0.05, ranking 1601 in the industry. The company's interest coverage is 1.56, ranking 1189 in the industry. The company's ROE and ROA are -9.08 and -2.37, respectively, indicating a negative return on equity and assets.
Conclusion
Carl Icahn (Trades, Portfolio)'s recent reduction in his stake in Newell Brands Inc is a significant move that may impact both his portfolio and the stock's performance. Despite the reduction, Icahn remains a major shareholder in the company. The transaction, coupled with the company's current financial health and industry position, may influence future investment decisions regarding Newell Brands Inc.
Other notable gurus who hold shares in Newell Brands Inc include Pzena Investment Management LLC, the largest guru shareholder, and Jefferies Group (Trades, Portfolio).
All data and rankings are accurate as of August 12, 2023.
