Carl Icahn, a major owner at Southwest Gas Holdings (SWX), recently added 127,731 shares. The buy increased his stake by 1 percent, and came to a total cost of $7.85 million.
This is Icahn’s ninth buy this year. The most recent buy occurred on June 1, for about $560,000 in shares. Two company executives and a director sold shares of the stock in 2022, at prices about 50 percent higher from where shares trade today.
Overall, company insiders own 0.5 percent of shares, and major holders own about 94 percent of the stock.
The Nevada-based gas utility has dropped just over 20 percent in the past year. Revenues are up 13 percent, although the company is not currently profitable.
Ichan has previously pushed the company to replace its CEO, which it did in March. The company is moving to improve its operations, and is in the early stages of a potential turnaround.
Action to take: Investors may like shares as a turnaround play at current prices. The utility also yields just over 4 percent right now.
For traders, the January 2024 $65 calls are an at-the-money trade. Last going for about $3.50. A rally from here could lead to mid-double-digit gains in the months ahead before expiration, and plays to the move higher in shares that started back in May.
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 of the companies mentioned in this article.