Zacks Investment Research Lowers General Electric Co. (GE) to Hold
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.”
A number of other equities analysts also recently commented on the company. Goldman Sachs Group Inc. set a $29.00 price objective on General Electric and gave the stock a “neutral” rating in a report on Monday, June 27th. Vetr raised General Electric from a “sell” rating to a “hold” rating and set a $30.93 target price for the company in a research report on Thursday, July 7th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of General Electric in a research report on Monday, June 20th. William Blair reaffirmed an “outperform” rating and set a $38.00 target price on shares of General Electric in a research report on Wednesday, June 29th. Finally, Stifel Nicolaus set a $34.00 target price on General Electric and gave the stock a “buy” rating in a research report on Thursday, September 8th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and twelve have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $32.64.
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General Electric (NYSE:GE) opened at 29.67 on Wednesday. The stock’s 50 day moving average is $30.91 and its 200-day moving average is $30.84. General Electric has a 52-week low of $24.26 and a 52-week high of $33.00. The firm has a market capitalization of $265.88 billion, a PE ratio of 25.08 and a beta of 1.11.
General Electric (NYSE:GE) last released its quarterly earnings data on Friday, July 22nd. The company reported $0.51 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.05. General Electric had a return on equity of 15.04% and a net margin of 9.14%. The firm had revenue of $33.49 million for the quarter, compared to the consensus estimate of $31.76 billion. During the same quarter in the prior year, the company posted $0.31 earnings per share. The firm’s revenue was up 14.6% on a year-over-year basis. Equities analysts expect that General Electric will post $1.51 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 25th. Stockholders of record on Monday, September 19th will be paid a $0.23 dividend. The ex-dividend date of this dividend is Thursday, September 15th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.10%. General Electric’s dividend payout ratio (DPR) is presently 77.97%.
In other General Electric news, Chairman Jeffrey R. Immelt bought 50,000 shares of the stock in a transaction dated Tuesday, July 26th. The stock was bought at an average cost of $31.45 per share, for a total transaction of $1,572,500.00. Following the completion of the purchase, the chairman now owns 2,198,688 shares in the company, valued at approximately $69,148,737.60. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.23% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the stock. Catamount Wealth Management boosted its position in General Electric by 35.3% in the first quarter. Catamount Wealth Management now owns 3,451 shares of the company’s stock valued at $110,000 after buying an additional 901 shares in the last quarter. Cable Hill Partners LLC boosted its position in General Electric by 0.4% in the second quarter. Cable Hill Partners LLC now owns 4,447 shares of the company’s stock valued at $141,000 after buying an additional 19 shares in the last quarter. Global X Management Co. LLC boosted its position in General Electric by 58.6% in the second quarter. Global X Management Co. LLC now owns 5,058 shares of the company’s stock valued at $159,000 after buying an additional 1,868 shares in the last quarter. James Investment Research Inc. boosted its position in General Electric by 2.6% in the second quarter. James Investment Research Inc. now owns 5,850 shares of the company’s stock valued at $184,000 after buying an additional 150 shares in the last quarter. Finally, Balentine LLC boosted its position in General Electric by 62.2% in the second quarter. Balentine LLC now owns 5,936 shares of the company’s stock valued at $187,000 after buying an additional 2,277 shares in the last quarter. Institutional investors own 55.81% of the company’s stock.
General Electric Company Profile
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