Penny stocks can be risky but play your cards well, and you can be rewarded with great fortunes. We are always looking for the ones making moves in the right direction and today, ICON stock is on the radar. These shares have been turning analyst heads as of late.
Penny Stocks to Watch
Iconix Brand (NASDAQ:ICON) has been on a low ebb for much of 2018 and into 2019. Today, the ICON penny stock is up 7.06% and selling for $2.08 USD on the NASDAQ exchange. The company cites itself as a brand management company and owns a diverse portfolio of consumer brands across fashion, sports, entertainment, and homewares.
This stock more than doubled at the beginning of March when shares suddenly shot up from $1.90 USD to above the $4.47 USD mark. Shares corrected a week later.
Today’s price represents the underside of that impressive climb. This is an example of the volatility of penny stocks. However, investors who sold at the high must’ve made significant profits. ICON stock is on a low ebb once again, so holding this stock longer may offer investors a holy-grail scenario.
Analysts Chime In
According to SeekingAlpha, Iconix Brand’s downfall in 2018 is due to:
“Accounting irregularities, followed by the departure of the company’s founder, Neil Cole, and ousting of a more recent CEO, John Haugh, as well as several lost DTR (Direct-to-Retail) contracts at Walmart and Target.”
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Iconix is in a tough climate at present as many brick and mortar retailers are moving away from DTRs. In response, Iconix Brands has moved more towards wholesale licenses. But these come with issues too: “The wholesale contracts cause short-term weakness, as they often take much longer to return to DTR revenues.”
Turnaround
But there may be a turnaround on the horizon.
There was a time not so long ago when ICON shares were selling for as low as $0.14 USD. To climb back to its current price, it has made a turnaround in a short period of time. It also has a new CEO to its name and a 202o debt refinancing deal, both of which are helping the company move on from a rocky 2018.
Further, during the month of March, Iconix announced two new licensing deals for its Cannon heritage home brand. It is small steps but vital ones such as this that suggest the potential ahead for the ICON penny stock.
It could be worth keeping an eye on this stock.
Featured Image: DepositPhotos © Alexmit
