Carl Icahn, a major holder of CVR Partners (UAN), recently bought 5,490 shares. The buy increased his position by less than 1%, and came to a total cost of $411,043.
The buy follows additional buys over the past months, totaling over 25,000 shares, for just under $2 million. Icahn was a steady buyer in 2024 as well. No other insiders have been buyers, and there have been no insider sales over the past two years.
Overall, CVR Partners insiders own 0.4% of shares, and institutions like Icahn own 45%.
The fertilizer producer is down 5% over the past year, amid a weak market for most agricultural commodities, barring a few weather-related events impacting cocoa and coffee.
Total revenues declined by 1.5%, even as earnings growth jumped by 83%. Profit margins topped 12%, a slightly above-average read for a commodity-producer. Even with the mixed performance, shares trade at a reasonable 13 times earnings.
Action to take: Shares are in the middle of their 12-month trading range. Investors may want to buy a small stake here and add to that if shares get into the low $70 range.
CVR Partners is structured as an LP, so shares pay a hefty 8.9% dividend. While high, that may carry different tax implications for different investors.
For traders, CVR is coming down from the higher end of its range. The August $70 puts, last trading for about $5.00, could see mid-double-digit returns if shares trend lower into the summer like they did last year.
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.