On December 17, 2024, Carl Icahn (Trades, Portfolio), a prominent activist investor, executed a significant transaction involving CVR Partners LP. The transaction saw the addition of 9,024 shares at a price of $74.87 per share, bringing Icahn's total holdings in the company to 4,042,868 shares. This move reflects Icahn's continued interest in the energy and utilities sectors, where the firm holds substantial positions. The transaction resulted in a 0.22% increase in Icahn's holdings of CVR Partners LP, with a portfolio impact of 0.01%.

Profile of Carl Icahn (Trades, Portfolio)

Carl Icahn (Trades, Portfolio) is renowned for taking significant stakes in public companies and advocating for strategic changes to unlock shareholder value. The firm's investment strategy involves acquiring undervalued assets, often in distressed situations, and revitalizing them for future sale. Icahn operates through three investment vehicles: Icahn Partners, American Real Estate Partners, and Icahn Management LP. GuruFocus tracks the portfolio of Icahn Capital Management, which includes top holdings such as Icahn Enterprises LP (IEP, Financial), CVR Energy Inc (CVI, Financial), and International Flavors & Fragrances Inc (IFF, Financial). With an equity value of $9.88 billion, Icahn's focus remains on the energy and utilities sectors.

Overview of CVR Partners LP

CVR Partners LP, trading under the symbol UAN, is a U.S.-based manufacturer and supplier of nitrogen fertilizer products. The company primarily markets Urea Ammonium Nitrate (UAN, Financial) and ammonia to industrial and agricultural customers. Its primary geographic markets include Kansas, Missouri, Nebraska, Iowa, Illinois, Colorado, and Texas. CVR Partners LP has a market capitalization of $793.991 million and a price-to-earnings ratio of 15.11. The stock is currently trading at $75.12, slightly above its GF Value of $70.81, indicating it is fairly valued.

Transaction Impact and Portfolio Position

The addition of shares in CVR Partners LP has increased Icahn's holdings to 3.06% of the firm's portfolio, representing 38.25% of the total shares held by Icahn Capital Management. This strategic move aligns with Icahn's philosophy of targeting undervalued and out-of-favor companies, particularly in the energy and utilities sectors. The transaction reflects Icahn's continued focus on these sectors, where the firm holds significant positions.

Financial Metrics and Valuation of CVR Partners LP

CVR Partners LP has shown a 10.67% year-to-date price change and a 0.33% gain since the transaction. Notable growth metrics include a 93.10% EBITDA growth over three years and a 27.30% revenue growth in the same period. The company's [GF-Score](https://www.gurufocus.com/term/gf-score/UAN) is 78/100, suggesting likely average performance. The [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/UAN) is 7/10, with a return on equity (ROE) of 17.52% and a return on assets (ROA) of 5.35%.

Performance and Growth Indicators

CVR Partners LP has demonstrated robust growth, with a 38.50% gross margin growth and an 83.10% [Operating Margin](https://www.gurufocus.com/term/operating-margin/UAN) growth. The company's [Growth Rank](https://www.gurufocus.com/term/rank-growth/UAN) is 5/10, and its [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/UAN) is 7/10. Despite these positive indicators, the company's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/UAN) rank is 5/10, and its [Altman Z score](https://www.gurufocus.com/term/zscore/UAN) is 1.64, indicating some financial risk.

Risk and Profitability Assessment

CVR Partners LP's [Piotroski F-Score](https://www.gurufocus.com/term/fscore/UAN) is 5, suggesting moderate financial health. The company's [interest coverage](https://www.gurufocus.com/term/interest-coverage/UAN) is 2.78, indicating its ability to meet interest obligations. While the company's profitability and growth metrics are strong, investors should be mindful of the financial risks associated with its current balance sheet and market conditions.

Conclusion

Carl Icahn (Trades, Portfolio)'s strategic addition to CVR Partners LP aligns with the firm's investment philosophy of targeting undervalued and out-of-favor companies. The transaction reflects Icahn's continued focus on the energy and utilities sectors, where the firm holds significant positions. As CVR Partners LP continues to demonstrate strong growth and profitability metrics, this acquisition could potentially yield substantial returns for Icahn Capital Management in the future.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.