IEP - Why Shares of Icahn Enterprises Are Up Today
2024-05-08 12:47:59 ET
Icahn Enterprises (NASDAQ: IEP) delivered its first-quarter results before the opening bell Wednesday, narrowing its net losses year over year and keeping its mouth-watering dividend at its previous level. Investors reacted positively to the news, sending shares of the holding company up by as much as 5% in morning trading. As of 12:06 p.m., they had retreated slightly, but were still up by 4.1%.
Icahn Enterprises is the investment vehicle of legendary activist investor Carl Icahn, but the company itself has been a target of activists in recent years. In 2023, Hindenburg Research published a report calling Icahn Enterprises "substantially overvalued" and claiming it used a "Ponzi-like" structure to fund its dividend.
The report resonated with investors, who punished the stock. It remains down by about 67% from where it traded in early 2023, and Icahn Enterprises earlier this year named portfolio manager Andrew Teno as its new CEO. But it continues to conduct business as usual despite the scrutiny.
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Why Shares of Icahn Enterprises Are Up Today