Carl Icahn's conglomerate, Icahn Enterprises, is facing financial strain as it grapples with operational issues and declining asset values, leading to a halved dividend and a 38% stock drop this year. The company is attempting to stabilize by selling a valuable scrapyard in Nashville and increasing its stake in CVR Energy, despite recent losses. Icahn's heavy borrowing against his shares adds pressure, but he remains optimistic about future cash flow improvements and potential regulatory relief for CVR Energy.
CNBC's Jim Cramer advised holding off on investing in Kroger due to the recent resignation of its CFO, while expressing uncertainty about Icahn Enterprises and AST SpaceMobile's potential for profitability. However, Cramer expressed confidence in GSK's stock performance and recommended it as a strong investment.
Icahn Enterprises, the investing arm of billionaire activist investor Carl Icahn, saw its stock hit a 19-year low ahead of the release of its third-quarter earnings. The stock has struggled this year following a critical report by short seller Hindenburg Research, which accused the company of overstating values and paying an unaffordable dividend. The report caused a significant drop in market capitalization and led to a dividend cut. Icahn Enterprises is expected to report a per-share earnings of 34 cents, compared to a loss of 37 cents a year ago, with revenue expected to decline. The stock has lost 66% of its value this year.
Icahn Enterprises' stock hit a fresh 52-week low of $17.92 after short seller Hindenburg Research accused the company of overstating values and paying an unaffordable dividend. The stock has fallen 65% this year and lost billions in market capitalization, prompting the company to cut its dividend in half.
Icahn Enterprises (NASDAQ:IEP) saw its shares drop 4% in after-hours trading and 23% in regular trading after disclosing that the Securities & Exchange Commission (SEC) had contacted the company regarding various aspects of its operations. This follows a similar inquiry by the U.S. Attorney's office in May. Icahn Enterprises also announced a 50% reduction in its quarterly distribution, prompting criticism from Hindenburg Research, which had previously issued a short report on the company. The SEC and U.S. Attorney's office have not made any claims or allegations against Icahn Enterprises or its owner, Carl Icahn.
Amazon's stock surged 10% after reporting a massive profit beat and positive guidance, while Apple slipped 3% despite beating earnings expectations. Tupperware Brands saw a 44.1% increase in its stock price after finalizing a debt restructuring deal. Booking Holdings jumped 9% and hit a new 52-week high after announcing strong quarterly results. Icahn Enterprises' shares dropped 25% after cutting its quarterly dividend in half amid criticism from Hindenburg Research. Block's shares plunged 13% despite a strong quarterly report, and Nikola's stock slid 12% after its CEO stepped down and the company reported disappointing second-quarter results.
Billionaire investor Carl Icahn has recovered $1 billion in his fortune after striking a loan deal with big banks to alleviate the impact of a short-seller assault on his conglomerate, Icahn Enterprises. The deal, disclosed in an SEC filing, led to a 20% surge in IEP stock and pushed Icahn's net worth higher, although he has still lost over $12 billion this year. The agreement consolidates existing loans and changes the interest charges to a variable rate, while ensuring that collateral for personal loans is based on net asset value rather than market price.
The stock price of Icahn Enterprises, owned by billionaire activist investor Carl Icahn, has jumped after it appears to have successfully fought off a short-seller attack on the company.
Shares of Icahn Enterprises have fallen over 50% due to a short report from Hindenburg and investor Bill Ackman. The company pays $8 per unit in dividend annually, resulting in a yield of almost 40%. However, the sustainability of this payout is uncertain due to the company's overleveraged position and fluctuating revenues. The company's unit offerings have caused dilution, but the decline in new shares issued and low bar of sales and earnings growth may mitigate this. The biggest risk is a potential distribution cut, which could significantly impact the company's share price. Despite the risks, the author believes a position in Icahn Enterprises is worth it for the potential high yield and future revenue growth.
The market value and stock for Icahn Enterprises (IEP) has plummeted since short-selling firm Hindenburg Research claimed that the company has been using inflated asset valuations and "ponzi-like economic structures." IEP's market cap was cut by more than half this month, and the stock has fallen almost 63% since the start of May. Billionaire Carl Icahn has pushed back against Hindenburg's report, calling it "self-serving," while longtime rival Bill Ackman has doubled down on the allegations and questioned why Icahn has not disclosed the terms of his market loans.
Billionaire activist investor Carl Icahn admits he was wrong to take a massive short position on the market that lost $9 billion, including $1.8 billion in 2017 and $7 billion between 2018 and Q1 2023. Icahn's investing arm, Icahn Enterprises, used a strategy of shorting broad market indexes, individual companies, commercial mortgages, and debt securities. Icahn also addressed margin loans he borrowed from IEP, which were recently highlighted by short-seller Hindenburg Research in a report accusing the company of inflating asset values.
Hindenburg Research has opened a short position in Icahn Enterprises bonds, days after accusing Carl Icahn of running "Ponzi-like" structures. The move comes as Icahn's firm posted a surprise first-quarter loss and disclosed that it had been contacted by US prosecutors. Icahn Enterprises did not address any of the key issues flagged in the May 2 report, according to Hindenburg. Shares of Icahn Enterprises are down nearly 40% since Hindenburg's report was first released earlier this month.
Icahn Enterprises L.P. is expected to reach breakeven by 2023, with analysts projecting a profit of $38 million. However, the company will have to grow 162% year-on-year to meet this target, which may be too optimistic. Additionally, Icahn Enterprises currently has a high level of debt, which increases the risk of investing in the company.
