General Electric Co. (GE) Stock Rating Lowered by Zacks Investment Research
General Electric Co. (NYSE:GE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “General Electric is actively restructuring its portfolio by divesting most of the GE Capital assets in order to redefine itself as a core industrial entity with digital edge as exemplified by Meridium deal. The strategic acquisitions in 3D printing business will further boost its existing material science and additive manufacturing capabilities as it expects to grow the new additive business to $1 billion by 2020 at attractive returns. The company has a positive earnings history in the trailing four quarters, beating estimates thrice. Earnings estimates have also remained steady in the last week. However, despite prudent steps to limit financial exposure, it is still susceptible to various market risks following the Brexit referendum. In addition, decline in oil prices have significantly impacted profitability and have undermined its growth potential to some extent. Significant order backlog and foreign currency volatility remain other headwinds.”
Several other analysts have also issued reports on GE. Goldman Sachs Group Inc. set a $29.00 target price on General Electric and gave the stock a “neutral” rating in a report on Monday, June 27th. Vetr upgraded General Electric from a “sell” rating to a “hold” rating and set a $30.93 price objective on the stock in a research note on Thursday, July 7th. Royal Bank Of Canada restated an “outperform” rating on shares of General Electric in a research note on Monday, June 20th. William Blair restated an “outperform” rating and issued a $38.00 price objective on shares of General Electric in a research note on Wednesday, June 29th. Finally, Stifel Nicolaus set a $34.00 price objective on General Electric and gave the company a “buy” rating in a research note on Thursday, September 8th. One analyst has rated the stock with a sell rating, ten have given a hold rating and twelve have given a buy rating to the stock. General Electric has a consensus rating of “Hold” and a consensus price target of $32.64.
Shares of General Electric (NYSE:GE) opened at 30.04 on Wednesday. The stock’s 50 day moving average price is $30.85 and its 200 day moving average price is $30.83. General Electric has a one year low of $24.26 and a one year high of $33.00. The firm has a market cap of $269.20 billion, a price-to-earnings ratio of 25.39 and a beta of 1.11.
General Electric (NYSE:GE) last posted its quarterly earnings data on Friday, July 22nd. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.05. The company earned $33.49 million during the quarter, compared to analysts’ expectations of $31.76 billion. General Electric had a return on equity of 15.04% and a net margin of 9.14%. General Electric’s revenue for the quarter was up 14.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.31 earnings per share. On average, equities analysts anticipate that General Electric will post $1.51 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 25th. Shareholders of record on Monday, September 19th will be issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.06%. The ex-dividend date is Thursday, September 15th. General Electric’s dividend payout ratio is presently 77.97%.
In other General Electric news, Chairman Jeffrey R. Immelt bought 50,000 shares of General Electric stock in a transaction on Tuesday, July 26th. The shares were purchased at an average price of $31.45 per share, with a total value of $1,572,500.00. Following the acquisition, the chairman now owns 2,198,688 shares in the company, valued at approximately $69,148,737.60. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.23% of the stock is owned by company insiders.
Large investors have recently modified their holdings of the stock. Emerald Acquisition Ltd. purchased a new position in shares of General Electric during the second quarter worth approximately $217,979,000. Waddell & Reed Financial Inc. boosted its position in shares of General Electric by 107.2% in the second quarter. Waddell & Reed Financial Inc. now owns 7,130,127 shares of the company’s stock worth $224,456,000 after buying an additional 3,688,210 shares during the last quarter. Acadian Asset Management LLC boosted its position in shares of General Electric by 291.0% in the second quarter. Acadian Asset Management LLC now owns 4,872,359 shares of the company’s stock worth $153,380,000 after buying an additional 3,626,125 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of General Electric by 0.6% in the second quarter. Vanguard Group Inc. now owns 575,093,558 shares of the company’s stock worth $18,103,945,000 after buying an additional 3,276,096 shares during the last quarter. Finally, State of New Jersey Common Pension Fund D boosted its position in shares of General Electric by 47.8% in the second quarter. State of New Jersey Common Pension Fund D now owns 9,610,000 shares of the company’s stock worth $302,523,000 after buying an additional 3,110,000 shares during the last quarter. 55.81% of the stock is currently owned by hedge funds and other institutional investors.
About General Electric
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for General Electric Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Electric Co. and related companies with MarketBeat.com's FREE daily email newsletter.