Icahn Enterprises (NASDAQ:IEP) Stock Price Down 6% - Time to Sell?

Key Points

• Icahn Enterprises shares fell 6% to about $5.76 on heavier-than-average volume, trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: Weiss Ratings downgraded the stock, and the sole analyst tracked by MarketBeat rates it “Sell.”
• The company reported a wider-than-expected quarterly loss and negative profitability metrics, while its $2.00 annualized dividend produces a high 35% yield and a negative payout ratio—raising sustainability concerns.

Icahn Enterprises L.P. (NASDAQ:IEP - Get Free Report)'s share price fell 6% on Friday. The stock traded as low as $5.77 and last traded at $5.7610. Approximately 1,323,502 shares changed hands during trading, an increase of 38% from the average session volume of 961,289 shares. The stock had previously closed at $6.13.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings cut Icahn Enterprises from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 16th. One research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, the company has a consensus rating of "Sell".

Icahn Enterprises Price Performance

The company has a market capitalization of $4.06 billion, a PE ratio of -7.74 and a beta of 0.77. The company has a debt-to-equity ratio of 2.98, a current ratio of 2.87 and a quick ratio of 2.87. The company's 50 day simple moving average is $6.79 and its 200 day simple moving average is $7.33.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The conglomerate reported ($0.52) earnings per share for the quarter, missing analysts' consensus estimates of $0.11 by ($0.63). Icahn Enterprises had a negative net margin of 4.81% and a negative return on equity of 17.99%. The firm had revenue of $2.98 billion during the quarter, compared to analysts' expectations of $2.04 billion.

Icahn Enterprises Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 23rd. Stockholders of record on Monday, August 17th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 35.0%. The ex-dividend date was Monday, August 17th. Icahn Enterprises's dividend payout ratio is currently -270.27%.

Institutional Trading of Icahn Enterprises

Institutional investors and hedge funds have recently made changes to their positions in the company. Western Wealth Management LLC purchased a new stake in shares of Icahn Enterprises during the first quarter worth about $47,000. Ancora Advisors LLC acquired a new position in shares of Icahn Enterprises during the second quarter worth approximately $73,000. Paragon Capital Management Ltd bought a new position in Icahn Enterprises in the 2nd quarter valued at about $74,000. Mountain Hill Investment Partners Corp. boosted its stake in Icahn Enterprises by 20.0% during the 3rd quarter. Mountain Hill Investment Partners Corp. now owns 12,000 shares of the conglomerate's stock valued at $81,000 after purchasing an additional 2,000 shares in the last quarter. Finally, Kestra Advisory Services LLC lifted its holdings in Icahn Enterprises by 208.9% in the 1st quarter. Kestra Advisory Services LLC now owns 14,279 shares of the conglomerate's stock valued at $108,000 after acquiring an additional 9,657 shares during the last quarter. 87.09% of the stock is currently owned by institutional investors and hedge funds.

About Icahn Enterprises

Icahn Enterprises L.P. NASDAQ: IEP is a diversified holding company managed by Icahn Capital LP. Its activities include making investments in public and private companies, pursuing activist investment strategies, and owning and operating businesses across several industries. The company is controlled by investor Carl C. Icahn, who serves as its chairman.

Its operating businesses have included petroleum refining and the production of nitrogen fertilizers through CVR Energy and CVR Partners, automotive parts distribution and repair services through Icahn Automotive, food packaging through Viskase Companies, and metal recycling through PSC Metals.

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