Will the IEP Share Price Recover from Hindenburg’s Accusations?

Icahn Enterprises is an American Conglomerate. The company was founded in 1987 and the American Real Estate Partners L.P. is the predecessor of the company. It has its headquarters in Florida, U.S. The company works in the Oil refining and marketing sector and has more than 20K employees.

Icahn Enterprises share was badly hit by Hindenburg’s accusations which led to a huge decline in the value of the share price. The founder of the company tried to refuse claims of the Hindenburg, which led to an advance in the share price. However, the sentiment of the stock could not be sustained and led to a huge decline in share price.

Before the halving in dividends, the IEP share paid a total dividend of $8.00 per share in the year 2022, leading to a 15.79% dividend yield. After the huge decline in price, the IEP share is left with a market cap of $8.336 Billion. It led to 410.454 Million shares floating in the market that are available for trading.

The company has a beta of 1.04, which indicates that the share price moves equal to the market as a whole. The EPS of the share has declined to -2.58 USD, following a negative ROE of -14.54%. It indicates that the share may not perform well in the future.

Icahn Enterprises L.P. Stock Performance Analysis

The company had made a revenue of $14.42 Billion in the year 2022, but it has highly declined showing a change of -9.6% year-on-year in Q2 2023 resulting in $2.93 Billion. Despite an increase of 46.00% in net income of the company as compared to Q2 2022, the current net income for Q2 2023 is -$419.00 Million. It shows that the company’s financials are not stable as the revenue is equal to the debt of the company for the year 2022.

IEP Share Technical Analysis

The IEP share price is following a downtrend in the market, leading to a huge decline in price after the breakdown below the falling wedge pattern. The stock price is still following a lower low structure, resulting in an extremely bearish market.

As the price has been declining to lower levels with good momentum, the IEP stock is following a death cross on the weekly time frame. It indicates further bearishness.

Due to a heavy decline in price, the RSI for the IEP stock has declined below the oversold zone. It makes the RSI to be bearish for the stock.

Technical Overview of IEP Stock

The majority of the oscillators and EMA’s are bearish for the stock as the price is trading below various EMA’s in multiple timeframes.

Conclusion

The Icahn Enterprises has still not overcome Heindenburg’s accusations and the technicals are also bearish for the stock. The RSI and EMA are also acting negatively, following a bearish price action for the charts. The fundamentals of the company are also getting weak with time.

Therefore, the price of the IEP share can decline to further lower levels unless the price breaks above the level of $36.00.

Technical Levels

Support levels for the IEP share are – $18.00 and $15.00
Resistance levels for the IEP share are – $36.00 and $55.00

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.