On November 19, 2024, Carl Icahn (Trades, Portfolio) executed a notable transaction involving Southwest Gas Holdings Inc (SWX, Financial). This transaction saw a reduction of 1,390,000 shares, impacting the portfolio by -1.11%. The shares were traded at a price of $79.11, bringing the total holding to 9,632,604 shares. This adjustment reduced the position of Southwest Gas Holdings Inc in Icahn's portfolio to 7.8%, while the stock now represents 13.43% of Icahn's total holdings. This strategic move by Icahn, a prominent figure in the investment world, is likely to attract attention from value investors and market analysts alike.
Profile of Carl Icahn (Trades, Portfolio)
Carl Icahn (Trades, Portfolio) is a renowned activist investor known for acquiring substantial stakes in public companies and advocating for strategic changes. The firm’s investment strategy focuses on undervalued assets, often in distressed industries, with the aim of revitalizing and selling them at a profit. Icahn operates through three investment vehicles: Icahn Partners, American Real Estate Partners, and Icahn Management LP. GuruFocus tracks the third portfolio, which covers all the stocks owned by Icahn Capital Management. The firm’s top holdings include Icahn Enterprises LP (IEP, Financial), CVR Energy Inc (CVI, Financial), International Flavors & Fragrances Inc (IFF, Financial), Southwest Gas Holdings Inc (SWX, Financial), and Bausch Health Companies Inc (BHC, Financial).
Overview of Southwest Gas Holdings Inc
Southwest Gas Holdings Inc is a utility company based in the USA, primarily engaged in natural gas distribution and utility infrastructure services. The company operates in the American Southwest, with significant revenue generated from natural gas sales and underground piping services. The business is segmented into natural gas distribution and utility infrastructure services, with the latter provided by its subsidiary, Centuri Construction Group. Southwest Gas Holdings Inc has a market capitalization of $5.63 billion and a price-to-earnings ratio of 31.48, indicating a modest overvaluation with a GF Value of $69.40 and a price-to-GF Value ratio of 1.14.
Financial Metrics and Valuation
Southwest Gas Holdings Inc is currently valued at $5.63 billion, with a price-to-earnings ratio of 31.48. The stock is considered modestly overvalued, with a GF Value of $69.40 and a price-to-GF Value ratio of 1.14. The company has a GF Score of 71/100, indicating likely average performance. Over the past three years, the company has shown a revenue growth of 9.20%, but a decline in EBITDA and earnings growth. The Financial Strength is ranked 4/10, and the Profitability Rank is 7/10, reflecting a mixed financial outlook.
Performance and Growth Indicators
Southwest Gas Holdings Inc has demonstrated a revenue growth of 9.20% over the past three years. However, the company has experienced a decline in EBITDA and earnings growth, with a Growth Rank of 2/10. The Operating Margin growth has decreased by 7.70%, and the Altman Z score stands at 1.05, indicating potential financial distress. The Piotroski F-Score is 6, suggesting moderate financial health.
Other Gurus Holding Southwest Gas Holdings Inc
Besides Carl Icahn (Trades, Portfolio), other notable investors in Southwest Gas Holdings Inc include Mario Gabelli (Trades, Portfolio), HOTCHKIS & WILEY, and Keeley-Teton Advisors, LLC (Trades, Portfolio). These investors, known for their strategic insights and value investing approaches, also hold significant positions in the company, indicating a shared belief in the potential of Southwest Gas Holdings Inc within the utilities sector.
Conclusion
Carl Icahn (Trades, Portfolio)'s decision to reduce holdings in Southwest Gas Holdings Inc reflects a strategic portfolio adjustment. This transaction and its implications provide valuable insights for value investors monitoring the utilities sector. The reduction in shares suggests a reevaluation of the company's valuation and growth prospects, aligning with Icahn's investment philosophy of capitalizing on undervalued assets. As the firm continues to navigate the market, this move may influence other investors' perceptions and strategies regarding Southwest Gas Holdings Inc.
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.
