What Happened:
Shares of holding company and industrial conglomerate Icahn (NYSE:IEP) fell 7.5% in the afternoon session after the company announced an Open Market Sale Agreement with Jefferies to sell up to $400 million of its depositary units. The sale means more depositary units will be issued. This could have a negative impact on its stock price as the newly issued units dilute the ownership of existing shareholders.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Icahn Enterprises? Access our full analysis report here, it’s free.
What is the market telling us:
Icahn Enterprises’s shares are not very volatile than the market average and over the last year have had only 9 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Icahn Enterprises is down 18.8% since the beginning of the year, and at $14.34 per share it is trading 34.8% below its 52-week high of $21.97 from September 2023. Investors who bought $1,000 worth of Icahn Enterprises’s shares 5 years ago would now be looking at an investment worth $215.73.
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