David Einhorn is building new position in CNH Industrial, says agricultural play is ‘cheap’

Greenlight Capital’s David Einhorn said Wednesday he has taken a medium sized position in agricultural play CNH Industrial.

Speaking at CNBC’s Delivering Alpha conference in New York City, the hedge fund investor said the agricultural machinery company is an under-the-radar value play as the industry nears the end of a bearish cycle.

“It’s exactly the kind of situation that absolutely nobody cares about right now because it’s cheap, and the news over the next period of time isn’t going to be very good. Agriculture prices are low, and agricultural equipment is ending down cycle,” Einhorn said at a panel with CNBC’s Leslie Picker.

Shares of CNH popped more than 4% in extended trading following his comments.

Einhorn noted that CNH, formerly Case New Holland, is a hefty dividend payer with an over 4% yield, while the firm is actively buying back stock.

“There’s very little financial leverage. And sometime next year, maybe even in early 2026…. people will begin envisioning a couple dollars earnings on the top cycle,” Einhorn said.

The industrial stock has significantly underperformed the market this year, down more than 17%.