Should I buy Icahn Enterprises stock in 2025?

What is Icahn Enterprises?

How much is the Icahn Enterprises stock?

The price of Icahn Enterprises stock is rising this week. As of now, the stock trades at $8.38 USD, showing a 0.24% increase over the past 24 hours but down 1.06% for the week. Market capitalization sits between $4.57 and $5.02 billion, with an average trading volume of 838,250 units over the past three months. The P/E ratio is currently unavailable, reflecting recent losses, while the dividend yield remains attractive at around 23%, and the stock’s beta stands at 0.57–0.68. With high income potential but notable volatility, investors in South Africa should weigh the appealing dividends against the stock’s recent instability.

Our complete analysis of the Icahn Enterprises stock

After extensive evaluation of Icahn Enterprises' latest financial disclosures, recent stock performance, and multi-faceted market data, this analysis distils a forward-looking perspective on the company’s prospects. By leveraging a proprietary blend of technical indicators, fundamental ratios, sectoral trends, and competitive intelligence, we provide a comprehensive assessment tailored for discerning investors. So, why might Icahn Enterprises stock once again become a strategic entry point into the diversified energy and industrials sector in 2025?

Recent Performance and Market Context

Despite a volatile last twelve months—characterised by significant price weaknesses, with the stock declining nearly 49% over the year and 27% over the past six months—Icahn Enterprises now finds itself trading at $8.38 (as of May 30, 2025). This marks a sharp departure from its 52-week high of $17.93 and positions IEP well below its consensus analyst price target of $15, implying an upside potential of about 79%. Such steep declines often present discerning investors with opportunities to capitalize on market overreactions.

Important to note is the macroeconomic and sector environment: With global energy markets expected to stabilise in 2025 and investor sentiment gradually shifting towards diversified conglomerates, holding companies like Icahn Enterprises—which span energy, automotive, packaging, real estate, home fashion, and pharma—are once again drawing renewed attention. The end of persistent activist short-selling campaigns—exemplified by the January 2025 shutdown of Hindenburg Research—has arguably removed a layer of reputational headwind and set the stage for a potential recalibration of market sentiment.

Further, Icahn’s consistently high dividend yield (between 22.86% and 23.87%) provides a clear incentive for yield-seeking investors in a global context where fixed-income yields remain subdued and equity dividends are prized for portfolio income stability.

Technical Analysis

A detailed technical review reveals a nuanced picture. Presently, key moving averages—the 20-day, 50-day, 100-day, and 200-day SMAs—remain above the prevailing share price, suggesting recent downward momentum and a technically “oversold” condition. The 14-day Relative Strength Index (RSI) hovers between 41.90 and 46.45, indicating that the stock is approaching the lower bound of neutral, while not yet in an oversold territory; this frequently precedes a technical reversal.

Meanwhile, the MACD (12,26) at 0.06–0.09 has transitioned to a buy signal, often signalling the early inception of upward price momentum. Notably, the key support range of $8.16–$8.25—a zone tested in recent sessions—has so far contained downward movement, further pointing to a potential base around these levels. Resistance at $8.72–$8.81 forms a short-term hurdle, yet surpassing this could rapidly drive a move towards higher technical targets, especially if volume remains elevated.

Short- and medium-term momentum may therefore be shifting, with early signals—especially the MACD crossing and price consolidation above crucial support—suggesting that IEP could be preparing to exit a prolonged bearish structure.

Fundamental Analysis

From a fundamental standpoint, Icahn Enterprises continues to leverage its diversified model, generating revenue streams from seven core sectors and weathering cyclical shocks across its investment portfolio. The negative net income and substantial Q1 2025 losses ($422 million net loss, or $0.79 per unit) have placed near-term pressure on valuation metrics, leading to a temporary absence of a meaningful P/E ratio. However, it is precisely this trough in operational performance that underscores the potential for mean reversion—particularly as the enterprise’s $1.3 billion holding company cash position supports both ongoing dividend policies and operational recovery.

The analyst consensus price target of $15 implies expectations for structural improvements. Key positives include:

• Unmatched Dividend Yield: At nearly 23%, IEP continues to offer one of the most attractive payouts in the sector—an important draw for global and South African investors seeking hard-currency income streams.
• Strategic Diversification: Exposure to sectors as varied as energy refining, auto repairs, food packaging, and pharmaceuticals provides natural hedges against sectoral downcycles.
• Brand and Leadership: The stewardship of Carl Icahn, with a track record of value creation across cycles, underpins long-term confidence in strategic capital allocation and turnaround potential.

While revenues declined by 19.1% year-on-year in Q1 2025 and profitability lags, such declines are not uncommon in diversified holdings facing synchronous headwinds. Valuation, at current price levels and against book assets, therefore appears attractive for investors willing to position ahead of an operational inflection.

Volume and Liquidity

Sustained trading interest—average daily volume stands at 838,250 shares, 12% above the 65-day average—underscores robust market conviction and enhances price discovery. The relatively tight public float (51.18 million shares) suggests that any return of positive sentiment, or the emergence of strategic buyers, could accelerate price appreciation due to limited shares available for broad accumulation.

Short interest at 22.14% of float, while elevated, may itself prove a bullish catalyst should a reversal or short covering event materialize. In tightly traded, high-yield stocks, such squeezes have historically led to rapid upside moves, especially when technical support levels hold.

Catalysts and Positive Outlook

Several forward-looking catalysts may contribute to a re-rating:

• Stabilization and Improvement of Subsidiary Operations: Divestitures, cost-cutting, or operational pivots in key holdings such as CVR Energy and the automotive segment could swiftly restore positive cash flows.
• New Investment Initiatives: Icahn’s historical acumen in opportunistic investments may surface in the transitioning energy landscape or in other undervalued portfolio segments, delivering material upside.
• ESG and Capital Return Policies: The company’s substantial cash reserves enable strategic moves in aligning with evolving ESG opportunities, which are increasingly prized in global allocation models.
• Potential Dividend Normalisation: After repeated cuts, the current dividend reset and strong cash position could enable a future stabilisation of the payout, renewing appeal to both institutional and cross-border yield-hunters.

Additionally, broader regulation in the energy and refining sectors in the US could provide structural tailwinds for well-capitalised, vertically integrated operators, while the uncorrelated, multi-sector business model reduces exposure to sector-specific dislocations. In the context of ZA-based investors, IEP represents an attractive offshore dollar-dividend exposure within a robust legal and regulatory landscape.

Investment Strategies

Given present technical and fundamental evidence, Icahn Enterprises appears suited to several entry approaches:

• Short-Term: Positioning near the recent $8.16–$8.25 support band offers favourable risk/reward, with any momentum shift potentially driving a swift rerating towards the $8.80+ resistance.
• Medium-Term: Investors anticipating operational stabilisation may view these levels as opportune, particularly in light of high dividend income, narrowing of losses, or news-driven coverage of the group’s turnaround efforts.
• Long-Term: For income-oriented investors, the defensive blend of deep value, hard-currency yield, and the possibility of structural recovery point to compelling positioning, especially ahead of broader market reappraisals of diversified holdings and a potential recovery in cyclical assets.

Across these horizons, the stock’s current valuation, relative to analyst targets and strategic assets, seems to represent an excellent opportunity for the patient investor willing to look beyond short-term volatility.

Is it the Right Time to Buy Icahn Enterprises?

With Icahn Enterprises trading at a significant discount to consensus price targets, fundamentally underpinned by a sector-leading dividend yield and a substantial cash war chest, the investment case appears increasingly attractive—especially as market pessimism has arguably been heavily priced in. Technical signals point to the beginning of a possible bullish reversal, underpinned by firm support and the early emergence of buying momentum. The group’s proven resilience, deep portfolio diversification, and potential for operational recovery set the stage for substantial upside, rewarding those investors prepared to adopt a strategic, forward-looking stance.

For South African investors and global market participants alike, Icahn Enterprises seems to be entering a new bullish phase—one where structural strengths, robust cash reserves, and a high dividend yield could form the foundation of an appealing total return profile for 2025 and beyond. In this context, the fundamentals justify renewed interest and serious consideration for portfolio inclusion, with present levels offering a potentially sharp risk/reward asymmetry in favour of the patient, opportunity-driven investor.

The confluence of multi-sector resilience, high-yield appeal, and current undervaluation makes Icahn Enterprises a stock that deserves close watch as a credible candidate for rotational capital—particularly as catalysts for operational turnaround and dividend stabilisation gather momentum.

How to buy Icahn Enterprises stock in South Africa?

Buying Icahn Enterprises shares online is simple and secure when you use a regulated broker. For South Africans, the two most popular ways to invest are: buying the stock outright (spot buying), or trading via Contracts for Difference (CFDs). Spot buying makes you the direct owner of the shares, while CFDs allow you to speculate on price changes—often with leverage—without ever owning the stock. Below, you’ll find a detailed broker comparison to help you choose the best platform for your investment strategy.

Spot Buying

When you buy Icahn Enterprises stock “for cash,” you’re purchasing actual shares held in your name via your broker. This classic method suits investors wanting long-term exposure and the potential to earn dividends (please note, tax implications for US MLPs can apply). South African brokers typically charge a fixed commission per trade, often around R80–R150 (about $4–$8), plus currency conversion fees.

Practical example

Suppose Icahn Enterprises shares trade at $8.38 (R154¹ per share at R18.40/USD). With a R18,400 investment (equal to $1,000), and after a R95 commission (about $5), you can buy roughly 119 shares.
✔️ Gain scenario:
If the share price climbs by 10%, your holding is now valued at R20,240 ($1,100).
Result: That’s a R1,840 ($100) gross gain—10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you trade Icahn Enterprises price movements without owning real shares. You can go long (profit if the price rises) or short (profit if it falls), and easily use leverage—meaning you can control a larger position than your capital alone allows. Brokers charge a spread (difference between buying and selling prices) and overnight financing fees if you hold your position beyond a day.

Example

You open a R18,400 ($1,000) CFD on Icahn Enterprises with 5x leverage—gaining R92,000 ($5,000) market exposure.
✔️ Gain scenario:
If IEP rises by 8%, your position earns 8% × 5 = 40%.
Result: That’s a R7,360 ($400) gain on your initial R18,400 ($1,000) stake—excluding broker fees and overnight costs.

Final Advice

Before you invest, always compare brokers’ fees, trading conditions, and platform features. This helps you minimise costs and find a service suited to your needs, whether you favour spot investing or agile trading via CFDs. The right choice depends on your financial goals, risk appetite, and whether you prefer steady ownership or flexible trading. Find a detailed broker comparison table further down this page to help make your decision with confidence.

¹ Exchange rates and fees are indicative and will vary by broker and market conditions.

Our 7 tips for buying Icahn Enterprises stock

The latest news about Icahn Enterprises

Icahn Enterprises stock has shown resilience with a modest gain of 0.24% over the last daily session. Although weekly performance was negative and the company's long-term track record is challenged, the latest market session points to recovering trading activity (112% of average trading volume) and minor positive momentum. For South African investors, this price resilience, despite overall losses, can be interpreted as stabilization following previously steep declines, supporting the perspective that oversold conditions may attract income-focused buyers seeking high-yield opportunities globally.

The firm’s dividend yield remains exceptionally high at around 23%, continuing to attract income-oriented investors, including those in ZA. This payout level ranks among the highest in the US equity market, underpinning the stock's appeal within global portfolios searching for substantial income in USD terms. Given the backdrop of a declining rand and South African investors' appetite for hard-currency dividend payers, IEP’s sustained yield—despite recent cuts—provides a positive signal about management's commitment to shareholder returns, while serving as a hedge against local currency pressures.

Analyst consensus price target of $15.00 implies significant upside potential (approx. 79%) from current levels. With IEP trading well below consensus valuations, market experts see room for substantial price appreciation, provided operational challenges can be addressed. South African investors monitoring offshore allocations may find this risk/reward balance attractive, as the potential for capital gains—combined with high dividend flow—may help diversify and enhance the yield profile of their US-listed holdings within the context of JSE/US dual-listed strategies.

Icahn Enterprises maintains a strong cash position at the holding company level ($1.3 billion), supporting ongoing operations and dividend capacity. In the wake of operational and quarterly earnings setbacks, the robust cash buffer demonstrates resilience in funding obligations and signals continued commitment to navigating near-term volatility. For investors and analysts in ZA, this financial flexibility is important, as it reduces immediate concerns over liquidity stress and enhances the likelihood that IEP can maintain distributions to international holders pending a recovery in core earnings.

The diversified business model across investments, energy, automotive, packaging, real estate, home fashion, and pharma sectors contributes to portfolio stability. While recent segment losses have weighed on results, the broad operational footprint offers insulation from cyclical weakness in any single area. For South African analysts and investors, this multi-sector diversification is a valuable trait—especially given exposure to cyclical and global macroeconomic shocks—positioning IEP as a potential stabilizing anchor within an international portfolio that seeks resilience amid shifting sectoral trends.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.