The Enduring Losses Incurred by Carl Icahn’s 5 Activist Targets over the Long Term

In this article, we discuss the enduring losses incurred by Carl Icahn’s 5 activist targets over the long term. You can read our detailed analysis of Icahn’s activist targets and their historical performance and go directly to read The Enduring Losses Incurred by Carl Icahn’s 10 Activist Targets over the Long Term. 

5. Tenneco Inc. (NYSE:TEN) 

Stock Loss: 71.14%
S&P 500 Return: 40.73%

Tenneco Inc. (NYSE:TEN) is an automotive components equipment manufacturer. Before it went private in 2022, the company operated as an aftermarket cruise control and emissions products manufacturer. Icahn first acquired stakes in Tenneco Inc. (NYSE:TEN) in 2018 as he sought to unlock value through the activist campaign.

Tenneco Inc. (NYSE:TEN) had shed significant market value when the legendary investor started offloading stakes in the company in 2021. The billionaire investor incured a 71.14% loss on exiting the stock in 2021.

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4. Transocean LTD (NYSE:RIG)

Stock Loss: 79.73%
S&P 500 Return: 44.47%

Transocean Ltd. (NYSE:RIG) was one of Carl Icahn’s top activist targets in 2013 as he sought exposure in the energy sector. The company and its subsidiary provide offshore contract drilling services for the oil and gas industry. In 2013, the activist investor acquired a 3.2% stake in Transocean Ltd. (NYSE:RIG) and started pushing for a shakeup of the board as he sought to unlock value through dividend payments.

A fierce proxy battle resulted in Transocean Ltd. (NYSE:RIG) agreeing to pay a $3 dividend, with Icahn getting seats on the board. Nevertheless, when Icahn exited his position in the company in 2016, Transocean Ltd. (NYSE:RIG) had lost nearly 79.73% in market value, underperforming the S&P 500, which had gained 44% over the same period.

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3. Conduent Incorporated (NYSE:CNDT)

Stock Loss: 80%
S&P 500 Return: 98.31%

Conduent Incorporated (NYSE:CNDT) is a technology company that offers digital business solutions and services for the commercial government and transportation sectors. Icahn targeted the company in 2017 by acquiring 19.8 million shares, becoming one of the largest shareholders.

While Icahn has succeeded in engineering management changes, including Clifford Skelton taking over as CEO and getting three board seats, the investment has yet to materialize. Conduent Incorporated (NYSE:CNDT) has shed more than 80% in market value since Icahn acquired stakes, underperforming the S&P 500, which has gained more than 90%.

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2. Hertz Global Holdings, Inc. (NASDAQ:HTZ)

Stock Loss: 94.38%
S&P 500 Return: 42.06%

Hertz Global Holdings, Inc. (NASDAQ:HTZ) is a vehicle rental company offering services under the Hertz Dollar and Thrifty Brands. Icahn started amassing stakes in Hertz Global Holdings, Inc. (NASDAQ:HTZ) in 2016 and, at one point, was the largest holder with a 39% stake.

With the massive holding, Icahn called shots on gaining board seats. While Hertz Global Holdings, Inc. (NASDAQ:HTZ) was one of Carl Icahn’s top activist targets, it ended up disappointing as the company imploded at the height of the pandemic. Icahn ended up incurring a 94.38% loss as Hertz Global Holdings, Inc. (NASDAQ:HTZ)’s core business stopped with the lockdowns in place amid the pandemic.

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1. Seventy-Seven Energy Inc

Stock Loss: 100%
S&P 500 Return: 7.06%

Seventy-Seven Energy holds the record of being one of the biggest failures in Carl Icahn’s activist campaigns. When in operation, the company operated as a diversified oilfield services company that offered a wide range of services and equipment in the US.

Icahn acquired a 13.74% stake in the company in 2014 when it struggled with low commodity prices and high debt. Even as the legendary investor pushed for strategic changes, including cost-cutting, board changes, and asset sales, his turnaround efforts failed to have a significant impact.

Seventy-Seven filed for bankruptcy in 2016 after struggling with a $1.7 billion debt. As Icahn incurred a 100% loss on the stock, the S&P 500 gained about 7% over the same period.

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