Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Investor Carl Icahn has grabbed a stake valued at over $1 billion in Apple Inc., pressing on the matter that more cash should be falling from the tech giants branches.

While Apple earlier this year announced a large buyback, Mr. Icahn said in an interview Tuesday that he wants to see it happen right away, near the current share price, which he considers cheap.

“This is a no-brainer to go buy stock in a company that can go borrow” at a low rate, Mr. Icahn said in an interview. “Buy the company here and even without earnings growth, we think it ought to be worth $625,” he said, referring to the stock price, which closed Tuesday at $489.57, having risen 5% on the news of Mr. Icahns investment.

Icahn said he thinks the tech giant is a highly undervalued company. “Had a nice conversation with Tim Cook today,” he said on Twitter. “Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.”

The shareholder did not disclose the size of his stake but several reports suggested he bought more than $1 billion worth of shares, which makes his Apple holding stand at around a quarter of one percent. Mr Einhorn’s last reported stake is worth just over $1 billion at Apple’s latest valuation. Apple’s largest shareholder, the Vanguard Group, an American fund manager, holds 4.76% of its stock, according to a March filing.

Mr. Icahn has lately been engaged in a battle over the future of another tech company – Dell Inc., whose CEO and founder is trying to take the company private. Mr. Icahn holds a stake of nearly 9% in the computer maker.

Mr. Icahns move into Apple is the latest example of a bullish investor activity, pursuing big game, in this case the largest company in the Standard & Poors 500-stock index. For executives and boards of companies large and small, anticipating, managing and responding to activist shareholders has emerged as a significant and ongoing task, considering the source of revenue for advisers on Wall Street who help companies with the challenge.

Mr. Icahns typical investment methods are to buy a large chunk of a company stock and agitate for changes to the companys management, how they use cash or other strategies he believes will boost stock prices. He also is known for picking fights with executives and directors of companies he believes arent acting in the interests of shareholders, including management at technology companies such as Netflix and Yahoo Inc. So far, both Mr. Icahn and Apple said the talks were amicable.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Gold extends decline from 3-1/2-month high ahead of Fed minutesGold extends decline from 3-1/2-month high ahead of Fed minutes Gold extended a drop from the strongest level in 3-1/2 months amid speculations Federal Reserve minutes will reveal Fed officials backing further stimulus reductions. Assets in the SPDR Gold Trust, the biggest bullion-backed ETF, remained […]
  • Hungary to receive LNG shipments from Qatar in 2027Hungary to receive LNG shipments from Qatar in 2027 Hungary's Minister for External Economy and Foreign Affairs Peter Szijjarto announced on Friday that the country could begin receiving shipments of liquefied natural gas from Qatar, the largest LNG exporter worldwide, in 2027."We have […]
  • Market Briefing on Monday June 27thMarket Briefing on Monday June 27th At the start of the US trading session on Monday, EUR/USD traded in proximity to the psychological 1.1000 level, after registering an intraday low of 1.0971. On Friday the common currency tested lows unseen since March 10th, tumbling to 1.0909 […]
  • Natural gas trading outlook: futures climb ahead of the EIA reportNatural gas trading outlook: futures climb ahead of the EIA report Natural gas futures were higher during early trade in Europe today, ahead of the US weekly inventories levels report. Analysts suggest another sizable gain for nat gas stocks, while weather patterns project more moderate weather for the US in […]
  • Forex Market: EUR/NOK daily trading forecastForex Market: EUR/NOK daily trading forecast Yesterday’s trade saw EUR/NOK within the range of 9.0252-9.1624. The pair closed at 9.1153, gaining 0.25% on a daily basis.At 7:26 GMT today EUR/NOK was down 0.17% for the day to trade at 9.0988. The pair touched a daily low at […]
  • Coca-Cola share price up, reduces stock compensation plan following investor criticismCoca-Cola share price up, reduces stock compensation plan following investor criticism Coca-Cola Co. gave in to investor pressure and agreed to curb a senior-executive compensation plan which was categorized as "excessive" by Warren Buffet and faced criticism by other large shareholders.“Coca-Cola has finally conceded that […]