IEP Stock Recent News

Icahn Enterprises L.P.' stock IEP, -23.23% fell 3.6% premarket Monday, extending Friday's losses after Carl Icahn's investing arm said it's halving its quarterly dividend.

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Icahn Enterprises (NASDAQ: IEP ) stock is plunging lower by more than 20% today after the diversified conglomerate reported second-quarter earnings and announced a quarterly dividend cut of 50% to $1 from $2. IEP stock has been highly volatile following the publication of Hindenburg Research's short report, which alleged that Icahn was at risk of a margin call due to taking on too much leverage against his company, among other things.

Hindenburg said Friday it remained short on the company, in a post on messaging platform X, formerly known as Twitter.

A jump in quarterly losses and a cut to Icahn Enterprises' dividend led to a 25% stock drop Friday morning.

Icahn Enterprises was the subject of a short report earlier this year, and the report seems to be affecting operations. Carl Icahn has already restructured his debt in response to the criticism, and on Friday, Icahn Enterprises cut its dividend in half.

IEP reported a weak Q2 2023 with a $417 million loss and a decrease in indicative net asset value. The company's generous distribution policy is unsustainable, and a distribution elimination is likely in the near future. Bond holders are selling off due to the insufficient distribution cut and the drop in NAV, posing refinancing problems in the future.

Icahn Enterprises L.P. has cut its dividend in half, causing a 35% drop in its share price. The company's strategy of paying out a high dividend that exceeded its profits and cash flows has faced criticism. Icahn Enterprises' net asset value per share has dropped considerably, and further declines are possible due to dilution from issuing new shares as dividends.

Carl Icahn's conglomerate Icahn Enterprises slashed quarterly dividend in half amid notable short seller Hindenburg Research's campaign.

Activist investor Carl Icahn has expressed regrets over his investment firm Icahn Enterprises' short-selling strategy in recent years, saying they hedged far more than was necessary. He wrote in a letter to unitholders along with the release of the firm's second quarter financial results: “As compelling as the above numbers are, they would have been far more impressive had we not strayed over the past several years from our activist methodology and shorted (hedged) far more than was necessary.