Icahn Enterprises (NASDAQ:IEP) Shares Pass Below 200 Day Moving Average - Should You Sell?

Key Points

• Icahn Enterprises' stock fell below its 200-day moving average, trading at $8.25, amid concerns about its financial performance and recent rating downgrades.
• The company's earnings per share came in at ($0.30), missing analysts' estimates by a significant margin, while it reported revenue of $2.14 billion, below the expected $2.39 billion.
• Despite the financial struggles, Icahn Enterprises announced a quarterly dividend of $0.50, which indicates a high yield but a concerning negative payout ratio of -162.60%.

Icahn Enterprises L.P. (NASDAQ:IEP - Get Free Report) shares crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $8.66 and traded as low as $8.25. Icahn Enterprises shares last traded at $8.25, with a volume of 714,029 shares.

Analyst Upgrades and Downgrades

IEP has been the topic of several recent research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Icahn Enterprises in a research note on Saturday, September 27th. Wall Street Zen raised shares of Icahn Enterprises from a "sell" rating to a "hold" rating in a report on Friday, September 5th. Finally, Zacks Research raised shares of Icahn Enterprises from a "strong sell" rating to a "hold" rating in a report on Friday, August 15th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce".

Icahn Enterprises Stock Performance

The stock has a market cap of $4.73 billion, a P/E ratio of -6.71 and a beta of 0.79. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 1.96. The business has a 50 day moving average price of $8.59 and a two-hundred day moving average price of $8.66.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The conglomerate reported ($0.30) earnings per share 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 the consensus estimate of $2.39 billion. Icahn Enterprises had a negative return on equity of 15.65% and a negative net margin of 6.78%. On average, sell-side analysts forecast that Icahn Enterprises L.P. will post -0.55 earnings per share for the current fiscal year.

Icahn Enterprises Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Monday, August 18th were paid a $0.50 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 24.2%. Icahn Enterprises's dividend payout ratio is -162.60%.

Institutional Investors Weigh In On Icahn Enterprises

A number of hedge funds have recently made changes to their positions in IEP. Paragon Capital Management Ltd purchased a new stake in shares of Icahn Enterprises in the first quarter worth about $156,000. Janney Montgomery Scott LLC lifted its position in shares of Icahn Enterprises by 164.0% in the first quarter. Janney Montgomery Scott LLC now owns 52,759 shares of the conglomerate's stock worth $478,000 after buying an additional 32,772 shares in the last quarter. Arrow Investment Advisors LLC purchased a new stake in shares of Icahn Enterprises in the first quarter worth about $137,000. Cambridge Investment Research Advisors Inc. lifted its position in shares of Icahn Enterprises by 17.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 34,107 shares of the conglomerate's stock worth $309,000 after buying an additional 5,177 shares in the last quarter. Finally, Spire Wealth Management lifted its position in shares of Icahn Enterprises by 57.1% in the first quarter. Spire Wealth Management now owns 5,500 shares of the conglomerate's stock worth $50,000 after buying an additional 2,000 shares in the last quarter. 87.09% of the stock is currently owned by hedge funds and other institutional investors.

Icahn Enterprises Company Profile

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.

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