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Saturday, July 13, 2024

Why Icahn Enterprises (IEP) Shares Are Falling Sharply – Icahn Enterprises (NASDAQ:IEP)

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Icahn Enterprises LP Common Stock IEP shares are trading lower by 10.75% to $45.00 Tuesday morning after Hindenburg Research said it has taken a short position in units of the company.

See Also: Why DoorDash (DASH) Stock Is Trading Higher

What Else?

Among several issues raised by Hindenburg in the report, the investment research firm highlights how Icahn Enterprises’ “current dividend yield is ~15.8%, making it the highest dividend yield of any U.S. large cap company by far, with the next closest at ~9.9%.” Hindenburg is concerned this dividend yield may be unsustainable.

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Additionally, Hindenburg says the research firm’s research has found that IEP units are inflated by 75%+ due to three key reasons:

  • IEP trades at a 218% premium to its last reported net asset value (NAV), vastly higher than all comparables.
  • Hindenburg says it has uncovered clear evidence of inflated valuation marks for IEP’s less liquid and private assets.
  • The company has suffered additional performance losses year to date following its last disclosure.

Traders and investors interested in reading the full research report can do so here.

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According to data from Benzinga Pro, IEP has a 52-week high of $55.55 and a 52-week low of $47.17.

Posted In: Newswhy it’s moving

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