General Electric Co. (GE) Cut to “Sell” at Zacks Investment Research
General Electric Co. (NYSE:GE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “General Electric recorded lower Industrial segment profit despite stringent cost-cutting and simplification initiatives owing to a highly volatile environment and sluggish growth across the globe. This forced the company to lower its organic revenue growth guidance for 2016. Significant order backlog, high operating risks related to the Brexit referendum and foreign currency volatility remain other headwinds. For a company as large as General Electric, the additional revenues needed for growth are quite large, posing a challenge in developing businesses on such a vast scale. However, post 3Q earnings, General Electric has outperformed the industry with a string of strategic acquisitions. Its multi-billion deal with Baker Hughes is also likely to boost the Oil & Gas segment revenues through sigs of re-conglomeration. The company has a positive earnings history, having beaten estimates thrice in the trailing four quarters.”
Several other analysts have also recently issued reports on the stock. JPMorgan Chase & Co. reissued a “neutral” rating on shares of General Electric in a research note on Tuesday, August 23rd. Morgan Stanley set a $32.00 price objective on shares of General Electric and gave the company a “hold” rating in a research note on Wednesday, August 31st. Deutsche Bank AG reissued a “hold” rating and set a $29.00 price objective on shares of General Electric in a research note on Thursday, August 25th. William Blair set a $35.00 price objective on shares of General Electric and gave the company a “buy” rating in a research note on Tuesday, November 22nd. Finally, Stifel Nicolaus set a $34.00 price objective on shares of General Electric and gave the company a “buy” rating in a research note on Thursday, September 8th. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and eleven have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $32.56.
Shares of General Electric (NYSE:GE) opened at 31.05 on Wednesday. General Electric has a 52 week low of $27.10 and a 52 week high of $33.00. The firm has a market capitalization of $274.68 billion, a PE ratio of 26.70 and a beta of 1.20. The stock has a 50 day moving average price of $29.59 and a 200 day moving average price of $30.44.
General Electric (NYSE:GE) last released its earnings results on Friday, October 21st. The company reported $0.32 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.32. The firm earned $29.30 billion during the quarter, compared to analysts’ expectations of $29.64 billion. General Electric had a net margin of 8.93% and a return on equity of 16.08%. General Electric’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.29 EPS. Equities analysts forecast that General Electric will post $1.49 earnings per share for the current fiscal year.
ILLEGAL ACTIVITY WARNING: This piece of content was first published by Daily Political and is owned by of Daily Political. If you are accessing this piece of content on another site, it was copied illegally and reposted in violation of US & international copyright and trademark laws. The correct version of this piece of content can be read at http://www.dailypolitical.com/2016/11/30/general-electric-co-ge-cut-to-sell-at-zacks-investment-research.html.
In related news, Chairman Jeffrey R. Immelt acquired 50,000 shares of the firm’s stock in a transaction dated Wednesday, November 9th. The stock was acquired at an average cost of $29.24 per share, for a total transaction of $1,462,000.00. Following the completion of the acquisition, the chairman now directly owns 2,248,688 shares of the company’s stock, valued at approximately $65,751,637.12. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.23% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of GE. The Manufacturers Life Insurance Company acquired a new stake in General Electric during the third quarter valued at approximately $582,268,000. Emerald Acquisition Ltd. acquired a new stake in General Electric during the second quarter valued at approximately $217,979,000. Waddell & Reed Financial Inc. raised its stake in General Electric by 107.2% in the second quarter. Waddell & Reed Financial Inc. now owns 7,130,127 shares of the company’s stock valued at $224,456,000 after buying an additional 3,688,210 shares in the last quarter. Acadian Asset Management LLC raised its stake in General Electric by 291.0% in the second quarter. Acadian Asset Management LLC now owns 4,872,359 shares of the company’s stock valued at $153,380,000 after buying an additional 3,626,125 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in General Electric by 0.6% in the second quarter. Vanguard Group Inc. now owns 575,093,558 shares of the company’s stock valued at $18,103,945,000 after buying an additional 3,276,096 shares in the last quarter. Institutional investors and hedge funds own 53.50% of the company’s stock.
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.