GE Aerospace (NYSE:GE) Shares Up 3.3% – Still a Buy?

GE Aerospace (NYSE:GE) shares rose 3.3% during mid-day trading on Tuesday. The company traded as high as $299.08 and last traded at $297.9470. 6,875,240 shares were traded during trading, an increase of 34% from the average daily volume of 5,136,251 shares. The stock had previously closed at $288.43.

GE Aerospace News Roundup

Here are the key news stories impacting GE Aerospace this week:

• Positive Sentiment: GE approved NYCO’s French-made turbine oil for Boeing 787 aircraft powered by its GEnx-1B engines after successful Air France trials. The approval could support adoption of the product and reinforces GE’s role in the Boeing 787 engine ecosystem. GE approves French turbine oil for Boeing 787 after Air France trials
• Positive Sentiment: GE is investing to expand manufacturing and maintenance, repair and overhaul capacity, positioning the company to capture continued demand for engines and aftermarket services. Its record $212 billion backlog also provides substantial long-term revenue visibility. GE Aerospace’s Costs Rise in Q3 GE Aerospace Q3 record backlog
• Neutral Sentiment: GE attracted approximately $17.2 million in net exchange-traded-fund buying on October 26, indicating some institutional demand, although the flow is too small to materially change the company’s fundamentals. General Electric sees ETF buying
• Neutral Sentiment: Potential changes to rare-earth rules are drawing attention because they could affect aerospace supply chains and input costs, but the near-term earnings impact for GE remains uncertain. Rare earth rules and GE Aerospace
• Negative Sentiment: Third-quarter costs rose as GE expanded capacity, faced inflation and encountered an unfavorable product mix. These factors pressured margins and raise concerns about whether profitability can improve quickly despite strong demand. GE Aerospace cost and margin pressure
• Negative Sentiment: Analysts trimmed GE’s estimated fair value from $391.19 to $378.43, while JPMorgan reduced its price target to $375. The revisions reflect a more cautious view of aftermarket growth and increase valuation pressure on a stock trading at a premium earnings multiple. GE stock fair value estimate lowered JPMorgan cuts GE Aerospace target

Analyst Ratings Changes

GE has been the topic of several analyst reports. Morgan Stanley reiterated an “overweight” rating and issued a $375.00 target price (down from $400.00) on shares of GE Aerospace in a report on Wednesday, October 21st. Wells Fargo & Company reduced their target price on shares of GE Aerospace from $390.00 to $380.00 and set an “overweight” rating for the company in a report on Wednesday, September 30th. BNP Paribas Exane dropped their target price on GE Aerospace from $305.00 to $280.00 and set an “underperform” rating on the stock in a report on Wednesday, October 21st. Melius Research set a $350.00 price objective on shares of GE Aerospace and gave the stock a “hold” rating in a research note on Monday, September 14th. Finally, Susquehanna cut their price objective on GE Aerospace from $430.00 to $400.00 and set a “positive” rating for the company in a research report on Wednesday, October 21st. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $373.45.

GE Aerospace Stock Up 3.6%

The firm has a market cap of $322.23 billion, a PE ratio of 35.90, a PEG ratio of 1.95 and a beta of 1.38. The stock has a 50 day simple moving average of $319.11 and a 200-day simple moving average of $323.28. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.98 and a quick ratio of 0.68.

GE Aerospace (NYSE:GE) last announced its quarterly earnings data on Tuesday, October 20th. The company reported $2.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.01 by $0.24. The business had revenue of $13.29 billion during the quarter, compared to the consensus estimate of $12.88 billion. GE Aerospace had a net margin of 17.31% and a return on equity of 44.43%. The firm’s quarterly revenue was up 24.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.66 earnings per share. Sell-side analysts predict that GE Aerospace will post 8.14 EPS for the current fiscal year.

GE Aerospace Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Monday, October 5th were paid a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, October 5th. GE Aerospace’s payout ratio is currently 21.68%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Trek Financial LLC raised its position in GE Aerospace by 2,048.9% in the third quarter. Trek Financial LLC now owns 20,243 shares of the company’s stock worth $6,322,000 after acquiring an additional 19,301 shares in the last quarter. Traynor Capital Management Inc. lifted its position in GE Aerospace by 14.4% during the 3rd quarter. Traynor Capital Management Inc. now owns 2,693 shares of the company’s stock worth $841,000 after acquiring an additional 338 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich increased its stake in shares of GE Aerospace by 2.5% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 1,428,384 shares of the company’s stock worth $447,082,000 after buying an additional 35,228 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in GE Aerospace during the 3rd quarter worth approximately $107,247,000. Finally, SFE Investment Counsel lifted its holdings in GE Aerospace by 5.4% in the third quarter. SFE Investment Counsel now owns 12,654 shares of the company’s stock worth $3,952,000 after acquiring an additional 652 shares during the last quarter. 74.77% of the stock is currently owned by hedge funds and other institutional investors.

About GE Aerospace

GE Aerospace (NYSE: GE) is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.

GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.