Carl Icahn, a major holder of CVR Energy (CVI), recently bought 878,212 shares. The buy increased his stake by 1%, and came to a total cost just over $16 million.
Icahn has previously been a seller of shares last year. The most recent sale was for 4.1 million shares last September, raising over $144.3 million. The sale was made at a price about double where he recently bought.
Overall, major holders own nearly all of CVR shares.
The petroleum and fertilizer producer is down 38% over the past year. Oil prices have been lackluster, and fertilizer prices have also struggled, with overall prices flat in 2024.
Amid that backdrop, CVR saw earnings growth turn negative, and revenues dropped by nearly 30%, with CVR barely turning a profit for the full year.
Action to take: While operations have been lackluster, shares hit a 52-week low in November and are now starting to trend higher. Momentum investors may like shares here for further gains in the months ahead.
CVR currently pays a 10.8% dividend, which is more than twice its earnings over the past year. It’s possible that the dividend may face a cut if earnings don’t improve in the quarters ahead. That could lead to a downtrend in the share price.
For traders, the current trend is higher. The March $20 calls, last trading or about $1.20, could see mid-double-digit returns. Traders may want to take quick profits, as further negative earnings could weigh on shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.