Icahn Enterprises (NASDAQ:IEP) Shares Gap Down - What's Next?

Key Points

• Icahn Enterprises experienced a significant drop in stock price, opening at $8.94 after closing at $9.40, with trades currently at $8.51 and a trading volume of 685,894 shares.
• Wall Street analysts have downgraded Icahn Enterprises from a "hold" to a "sell" rating, reflecting concerns over its financial performance.
• The company recently declared a quarterly dividend of $0.50 per share, with a high annualized yield of 23.2%, despite a negative dividend payout ratio of -162.60%.

Icahn Enterprises L.P. (NASDAQ:IEP - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $9.40, but opened at $8.94. Icahn Enterprises shares last traded at $8.51, with a volume of 685,894 shares traded.

Analyst Ratings Changes

Several research firms recently weighed in on IEP. Wall Street Zen downgraded shares of Icahn Enterprises from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Zacks Research upgraded shares of Icahn Enterprises from a "strong sell" rating to a "hold" rating in a research report on Friday, August 15th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Icahn Enterprises presently has an average rating of "Hold".

Icahn Enterprises Stock Performance

The company has a market cap of $4.85 billion, a price-to-earnings ratio of -6.88 and a beta of 0.78. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 1.96. The stock's fifty day simple moving average is $8.88 and its 200 day simple moving average is $8.99.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The conglomerate reported ($0.30) EPS for the quarter, missing analysts' consensus estimates of $0.14 by ($0.44). The business had revenue of $2.14 billion during the quarter, compared to analyst estimates of $2.39 billion. Icahn Enterprises had a negative net margin of 6.78% and a negative return on equity of 15.65%. As a group, analysts anticipate that Icahn Enterprises L.P. will post -0.55 earnings per share for the current year.

Icahn Enterprises Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 24th. Stockholders of record on Monday, August 18th will be issued a dividend of $0.50 per share. The ex-dividend date is Monday, August 18th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 23.6%. Icahn Enterprises's dividend payout ratio (DPR) is currently -162.60%.

Institutional Trading of Icahn Enterprises

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Caz Investments LP increased its holdings in shares of Icahn Enterprises by 12.5% during the 2nd quarter. Caz Investments LP now owns 11,254 shares of the conglomerate's stock worth $91,000 after buying an additional 1,254 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Icahn Enterprises by 60.1% during the 2nd quarter. Bank of America Corp DE now owns 85,223 shares of the conglomerate's stock worth $686,000 after buying an additional 32,007 shares during the last quarter. Jump Financial LLC acquired a new stake in shares of Icahn Enterprises during the 2nd quarter worth approximately $216,000. First Trust Advisors LP increased its holdings in 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 purchasing an additional 160,183 shares during the last quarter. Finally, Stablepoint Partners LLC increased its holdings in Icahn Enterprises by 6.3% in the 2nd quarter. Stablepoint Partners LLC now owns 27,360 shares of the conglomerate's stock valued at $220,000 after purchasing an additional 1,612 shares during the last quarter. Institutional investors and hedge funds own 87.09% of the company's stock.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services.