It was revealed in a recent SEC filing that CARL ICAHN, 10% Owner at CVR Partners UAN made a noteworthy insider purchase on November 18,.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that ICAHN bought 13,971 shares of CVR Partners, amounting to a total of $1,010,026.

CVR Partners shares are trading down 0.31% at $71.47 at the time of this writing on Tuesday morning.

About CVR Partners

CVR Partners LP is a manufacturer and supplier of nitrogen fertilizer products. Its principal products include Urea Ammonium Nitrate (UAN) and ammonia. The company market ammonia products to industrial and agricultural customers and UAN products to agricultural customers. The primary geographic markets for its fertilizer products are Kansas, Missouri, Nebraska, Iowa, Illinois, Colorado, and Texas. The company’s product sales are heavily weighted toward UAN.

Key Indicators: CVR Partners’s Financial Health

Decline in Revenue: Over the 3 months period, CVR Partners faced challenges, resulting in a decline of approximately -4.13% in revenue growth as of 30 September, 2024. This signifies a reduction in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 14.73%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CVR Partners’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.36.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.92, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.42 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.44 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 7.18, CVR Partners presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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The Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of CVR Partners’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.