A jump in quarterly losses and a cut to Icahn Enterprises’ dividend led to a 25% stock drop Friday morning.
Topline
Shares of Icahn Enterprises plunged 25% Friday morning after Carl Icahn’s firm cut its quarterly distribution in half, leading to a $1.7 billion drop in the 87-year-old billionaire’s net worth—months after infamous short-seller Hindenburg accused the company of “ponzi-like” behavior.Key Facts
The company was trading at $24.50 a share as of 11:35 a.m. Friday, down from $32.68 when the market closed Thursday, representing a nearly 53% drop since the start of the year.
In its first reduction since 2011, Icahn Enterprises cut its quarterly dividend from $2 to $1 Friday, and its namesake founder published a letter saying the firm would refocus on corporate activism, which built Ichan’s fortune in the first place.
The $1 dividend represents a 12% annualized yield, the company noted.
