5 Favorite Stocks of Activist Billionaire Carl Icahn

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In this article, we discuss 5 favorite stocks of activist Carl Icahn. If you want to see more of his top holdings, click 10 Favorite Stocks of Activist Billionaire Carl Icahn

5. Bausch Health Companies Inc. (NYSE:BHC)

Icahn Capital LP’s Stake Value: $958,650,000

Percentage of Icahn Capital LP’s 13F Portfolio: 4.30%

Number of Hedge Fund Holders: 53

Bausch Health Companies Inc. (NYSE:BHC) is based in Laval, Canada, operating as a manufacturer of pharmaceuticals, medical devices, and over-the-counter drugs for eye health, gastroenterology, and dermatology. In Q4 2021, Carl Icahn’s Icahn Capital LP held 34.7 million shares of Bausch Health Companies Inc. (NYSE:BHC), worth $958.65 million, representing 4.30% of the total 13F securities. Icahn boosted his stake in the company by 2% in the fourth quarter. 

On March 29, Bausch Health Companies Inc. (NYSE:BHC) announced its plans to reduce debt by $200 million by paying off its senior secured term loans on March 31, 2022, using cash from operating activities.

RBC Capital analyst Douglas Miehm on February 1 maintained an Outperform rating on Bausch Health Companies Inc. (NYSE:BHC) but lowered the firm’s price target on the shares to $34 from $40. The analyst updated his model to account for the filing of preliminary S-1 and prospectus by Bausch Health Companies Inc. (NYSE:BHC) regarding the Bausch+Lomb IPO. Due to the recent share price weakness, the analyst remains “constructive” on the stock’s outlook.

According to Insider Monkey’s Q4 data, 53 hedge funds were long Bausch Health Companies Inc. (NYSE:BHC), up from 39 funds in the preceding quarter. John Paulson’s Paulson & Co is a significant shareholder of the company, holding about 26 million shares worth $713.4 million. 

Here is what Miller Value Partners has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q1 2021 investor letter:

“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosed a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”

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