Carl C. Icahn, along with Icahn Partners LP and Icahn Partners Master Fund LP, has sold a substantial portion of shares in Southwest Gas (NYSE:SWX) Holdings, Inc. (NYSE:SWX). The sale, which took place on November 19, involved 1,390,000 shares at a price of $76.74 each, amounting to a total transaction value of approximately $106.7 million.
Following this transaction, Icahn Partners directly holds 5,596,441 shares, while Icahn Partners Master Fund retains 4,036,163 shares of Southwest Gas Holdings. The sale was made to a market maker under Section 144(f)(1)(ii) of the Securities Act of 1933. Carl Icahn, a prominent investor, is known for his significant influence over the investment and voting decisions of these entities.
In other recent news, Southwest Gas Holdings Inc. has projected strong growth amid its ongoing transformation into a fully regulated natural gas utility. The company reported a robust financial outlook in its Third Quarter 2024 Earnings Conference Call, expecting a full-year utility net income between $233 million and $243 million. Southwest Gas also noted a significant customer growth, adding 41,000 new meter sets over the past year, and maintains a strong cash position, eliminating the need for equity issuance in the near future.
Regulatory achievements such as a successful rate case in Nevada and ongoing discussions in Arizona were discussed, with new rates expected by spring 2025. The company anticipates a compounded annual growth rate for net income between 9.25% and 11.25% over the next three years. Additionally, Southwest Gas highlighted that the TSMC Semiconductor Manufacturing Facility and large-scale data center developments in Arizona and Nevada are expected to increase demand for natural gas services.
While the company's consolidated adjusted EPS for Q3 2024 showed a decrease from the previous year, it projects net income to finish within the top half of the revised guidance range for 2024. Capital expenditure for the same year is planned at approximately $830 million, supporting system reliability and growth. These are the recent developments that investors should be aware of.
InvestingPro Insights
As Carl Icahn reduces his stake in Southwest Gas Holdings, Inc. (NYSE:SWX), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Southwest Gas boasts a market capitalization of $5.68 billion and trades at a P/E ratio of 31.52, suggesting a premium valuation compared to some industry peers.
Despite Icahn's recent share sale, SWX has demonstrated strong market performance, with a year-to-date price total return of 29.42% and a one-year return of 37.31%. This upward trajectory has brought the stock price to 99.89% of its 52-week high, indicating robust investor confidence.
InvestingPro Tips highlight that Southwest Gas has maintained dividend payments for an impressive 54 consecutive years, with 17 years of consecutive dividend increases. This track record of consistent shareholder returns may appeal to income-focused investors, especially given the current dividend yield of 3.13%.
However, it's worth noting that the company's revenue growth has been negative, with a 5.06% decline over the last twelve months. This contrasts with the stock's strong price performance, suggesting that investors may be valuing the company based on factors beyond current revenue trends.
For those seeking a deeper understanding of Southwest Gas's financial health and future prospects, InvestingPro offers 8 additional tips, providing a more comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.