Carl Icahn buys $411,042 in CVR Partners common units

Published 02/04/2025, 00:14
Carl Icahn buys $411,042 in CVR Partners common units

In a recent series of transactions, Carl Icahn, a well-known investor and significant shareholder, has acquired additional common units of CVR Partners, LP (NYSE:UAN), a $800 million market cap company that currently trades at a P/E ratio of 13.1. According to InvestingPro analysis, the company demonstrates strong financial health with notable profitability metrics. The transactions, which took place on March 28, March 31, and April 1, 2025, involved the purchase of a total of 5,490 common units. The price per unit ranged from $74.69 to $74.96, with the total value of the transactions amounting to approximately $411,042. The company currently offers an attractive dividend yield of 9.22% and has maintained relatively low price volatility.

These purchases were conducted under a Rule 10b5-1 trading plan, which was adopted on December 20, 2024. This plan allows insiders to set up a predetermined schedule for buying or selling stock, providing a defense against potential accusations of insider trading.

As a result of these transactions, Icahn now holds 207,186 common units directly, while the total number of shares owned by the reporting persons, including entities associated with Icahn, stands at 3,892,000. The transactions underscore Icahn’s continued interest and investment in CVR Partners, a company engaged in the production and distribution of nitrogen fertilizer products.

In other recent news, CVR Partners reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.73. The company’s revenue for the quarter reached $139.56 million, closely aligning with projections. CVR Partners also announced a distribution of $1.75 per common unit. The firm demonstrated a strong operational performance with net income totaling $18 million and an EBITDA of $50 million. Analysts noted the company’s ability to exceed EPS forecasts, highlighting its operational efficiency and effective cost management. For the upcoming year, CVR Partners projects maintenance capital spending between $35 million and $45 million, with growth capital spending ranging from $20 million to $25 million. The company anticipates strong demand for nitrogen fertilizer in the spring application, estimating an ammonia utilization rate of 95-100% for the first quarter of 2025. Additionally, the CEO emphasized the tight global urea market, suggesting a strategic advantage for the company.

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