Hindenburg Research challenges Carl Icahn with its latest campaign for the market-moving short-seller.
Carl Icahn speaking at Delivering Alpha in New York on September 13, 2016.
David A. Grogan | CNBC
Hindenburg Research, a notorious short-seller, is eyeing prominent activist investor Carl Icahn.
The company, led by Nathan Anderson, Icahn Enterprisesalleges “inflated” asset valuations because, among other reasons, the net asset value premium for shares of publicly traded holding companies is unusually high.
“Overall, we believe Wall Street legend Icahn made the classic mistake of overusing leverage in the face of sustained losses,” Hindenberg Research said in a memo released Tuesday. ing.
Shares fell more than 12% in trading on Tuesday.
One of history’s most famous corporate raiders, Icahn made his name in the 1980s with the successful hostile takeover of Trans World Airlines, stripping the company of its assets. Most recently, billionaire investors engaged in activist investments in McDonald’s and biotech firm Illumina.
Headquartered in Sunny Isles Beach, Florida, Icahn Enterprises is a holding company with a myriad of businesses, including energy, automotive, food packaging, metals and real estate.
The conglomerate is paying a 15.9% dividend, according to FactSet. Hindenburg believes its high dividend yield is “unsupported” by the company’s cash flow and investment performance.
CNBC reached out to Icahn for comment.
Shares of Icahn Enterprises have fallen about 13% over the year.
Summarize this content to 100 words Carl Icahn speaking at Delivering Alpha in New York on September 13, 2016.David A. Grogan | CNBCHindenburg Research, a notorious short-seller, is eyeing prominent activist investor Carl Icahn.The company, led by Nathan Anderson, Icahn Enterprisesalleges “inflated” asset valuations because, among other reasons, the net asset value premium for shares of publicly traded holding companies is unusually high.”Overall, we believe Wall Street legend Icahn made the classic mistake of overusing leverage in the face of sustained losses,” Hindenberg Research said in a memo released Tuesday. ing.Shares fell more than 12% in trading on Tuesday.One of history’s most famous corporate raiders, Icahn made his name in the 1980s with the successful hostile takeover of Trans World Airlines, stripping the company of its assets. Most recently, billionaire investors engaged in activist investments in McDonald’s and biotech firm Illumina.Headquartered in Sunny Isles Beach, Florida, Icahn Enterprises is a holding company with a myriad of businesses, including energy, automotive, food packaging, metals and real estate.The conglomerate is paying a 15.9% dividend, according to FactSet. Hindenburg believes its high dividend yield is “unsupported” by the company’s cash flow and investment performance.CNBC reached out to Icahn for comment.Shares of Icahn Enterprises have fallen about 13% over the year.
https://www.cnbc.com/2023/05/02/hindenburg-research-takes-on-carl-icahn-in-latest-campaign-for-market-moving-short-seller.html Hindenburg Research challenges Carl Icahn with its latest campaign for the market-moving short-seller.