Icahn Enterprises (NASDAQ:IEP) Shares Cross Below Two Hundred Day Moving Average - What's Next?

Key Points

• Shares fell below the 200-day moving average: Icahn Enterprises slid under its 200-day MA of $8.00, trading as low as $7.44 and last at $7.50 on heavy volume, signaling technical weakness.
• Analyst sentiment has weakened: Recent downgrades (Wall Street Zen to Hold; Weiss Ratings at Sell) leave the stock with a consensus rating of "Reduce."
• Fundamentals and dividend raise concerns: The company missed quarterly EPS ($0.00 vs. $0.17), reports negative net margin and ROE, and despite this pays a $0.50 quarterly dividend (a 26.7% yield) with a -333% payout ratio, calling sustainability into question.

Icahn Enterprises L.P. (NASDAQ:IEP - Get Free Report)'s share price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $8.00 and traded as low as $7.44. Icahn Enterprises shares last traded at $7.50, with a volume of 1,489,101 shares.

Analysts Set New Price Targets

IEP has been the subject of several recent research reports. Wall Street Zen cut Icahn Enterprises from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Weiss Ratings restated a "sell (e+)" rating on shares of Icahn Enterprises in a report on Monday, December 29th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Icahn Enterprises has a consensus rating of "Reduce".

Icahn Enterprises Stock Down 0.7%

The company has a debt-to-equity ratio of 1.93, a current ratio of 4.17 and a quick ratio of 4.17. The company has a market capitalization of $4.78 billion, a PE ratio of -12.50 and a beta of 0.81. The business's 50 day simple moving average is $7.88 and its 200 day simple moving average is $8.00.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The conglomerate reported $0.00 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.17). The firm had revenue of $2.70 billion during the quarter, compared to analysts' expectations of $2.46 billion. Icahn Enterprises had a negative net margin of 2.98% and a negative return on equity of 8.22%. As a group, analysts anticipate that Icahn Enterprises L.P. will post -0.55 earnings per share for the current fiscal year.

Icahn Enterprises Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Monday, March 9th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 26.7%. The ex-dividend date is Monday, March 9th. Icahn Enterprises's dividend payout ratio is presently -333.33%.

Hedge Funds Weigh In On Icahn Enterprises

Several large investors have recently modified their holdings of the business. Icahn Carl C lifted its stake in Icahn Enterprises by 5.9% during the fourth quarter. Icahn Carl C now owns 549,400,539 shares of the conglomerate's stock worth $4,147,974,000 after purchasing an additional 30,467,595 shares in the last quarter. Jump Financial LLC purchased a new stake in shares of Icahn Enterprises in the 4th quarter valued at $1,353,000. First Trust Advisors LP raised its holdings in shares of Icahn Enterprises by 22.1% in the 2nd quarter. First Trust Advisors LP now owns 884,514 shares of the conglomerate's stock valued at $7,116,000 after buying an additional 160,183 shares during the period. Invesco Ltd. acquired a new position in Icahn Enterprises during the 4th quarter worth about $1,074,000. Finally, GSA Capital Partners LLP lifted its stake in Icahn Enterprises by 329.7% during the 3rd quarter. GSA Capital Partners LLP now owns 104,658 shares of the conglomerate's stock worth $881,000 after acquiring an additional 80,301 shares in the last quarter. Institutional investors and hedge funds own 87.09% of the company's stock.

Icahn Enterprises Company Profile

Icahn Enterprises L.P. NASDAQ: IEP is a diversified holding company based in New York City. Controlled by veteran investor Carl C. Icahn, the partnership makes strategic investments and owns wholly or partially controlled subsidiaries across a broad range of industries. With a flexible capital structure, Icahn Enterprises seeks to generate long-term value through active ownership, asset optimization and operational improvements.

The company reports its activities through five principal business segments.

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