General Electric Co. (GE) Rating Lowered to Hold at 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 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.”
Other equities research analysts have also recently issued reports about the company. Stifel Nicolaus reaffirmed a “buy” rating and set a $34.00 price objective on shares of General Electric in a research note on Monday, June 27th. Vetr cut General Electric from a “strong-buy” rating to a “buy” rating and set a $33.10 price objective for the company. in a research note on Wednesday, May 25th. Bank of America Corp. reaffirmed a “buy” rating on shares of General Electric in a research note on Monday, June 6th. Credit Suisse Group AG reaffirmed a “buy” rating on shares of General Electric in a research note on Saturday, July 9th. Finally, Citigroup Inc. reaffirmed a “buy” rating and set a $36.00 price objective on shares of General Electric in a research note on Monday, July 25th. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and twelve have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $32.64.
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Shares of General Electric (NYSE:GE) opened at 29.67 on Wednesday. The stock’s 50 day moving average price is $30.91 and its 200 day moving average price is $30.84. The stock has a market capitalization of $265.88 billion, a P/E ratio of 25.08 and a beta of 1.11. General Electric has a one year low of $24.26 and a one year high of $33.00.
General Electric (NYSE:GE) last released its earnings results on Friday, July 22nd. The company reported $0.51 EPS for the quarter, beating the Thomson Reuters’ 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%. The business’s revenue for the quarter was up 14.6% on a year-over-year basis. During the same period last year, the firm earned $0.31 EPS. On average, analysts forecast that General Electric will post $1.51 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 25th. Shareholders of record on Monday, September 19th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 3.10%. The ex-dividend date of this dividend is Thursday, September 15th. General Electric’s dividend payout ratio (DPR) is presently 77.97%.
In other General Electric news, Chairman Jeffrey R. Immelt purchased 50,000 shares of the 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 completion of the transaction, the chairman now directly owns 2,198,688 shares in the company, valued at $69,148,737.60. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.23% of the company’s stock.
Several institutional investors have recently bought and sold shares of the stock. Patten & Patten Inc. TN increased its position in General Electric by 1.5% in the second quarter. Patten & Patten Inc. TN now owns 640,718 shares of the company’s stock valued at $20,170,000 after buying an additional 9,512 shares during the last quarter. Baxter Bros Inc. purchased a new position in General Electric during the second quarter valued at approximately $11,436,000. Howland Capital Management LLC increased its position in General Electric by 7.6% in the second quarter. Howland Capital Management LLC now owns 1,255,577 shares of the company’s stock valued at $39,526,000 after buying an additional 89,178 shares during the last quarter. Osborn Rohs Williams & Donohoe Ltd increased its position in General Electric by 1.2% in the second quarter. Osborn Rohs Williams & Donohoe Ltd now owns 290,268 shares of the company’s stock valued at $9,138,000 after buying an additional 3,405 shares during the last quarter. Finally, Cacti Asset Management LLC increased its position in General Electric by 1.2% in the second quarter. Cacti Asset Management LLC now owns 97,525 shares of the company’s stock valued at $3,070,000 after buying an additional 1,175 shares during the last quarter. 55.81% of the stock is currently owned by institutional investors.
General Electric Company Profile
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