General Electric Co. (GE) Downgraded 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 note issued to investors on Monday.
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 the acquisition of analytics firm Meridium. The company’s strategic acquisitions in 3D printing business will further boost its long-term revenues 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. The company’s objectives of simplification and productivity improvement pose operational execution risks as well. Significant order backlog and foreign currency volatility remain other headwinds.”
GE has been the subject of a number of other reports. Vetr raised General Electric from a “sell” rating to a “hold” rating and set a $31.67 price target for the company in a research report on Thursday, July 21st. Standpoint Research assumed coverage on General Electric in a research report on Friday, July 22nd. They set a “sell” rating and a $26.00 price target for the company. Credit Suisse Group AG reaffirmed a “buy” rating on shares of General Electric in a research report on Saturday, July 9th. Citigroup Inc. reaffirmed a “buy” rating and set a $36.00 price target on shares of General Electric in a research report on Monday, July 25th. Finally, Goldman Sachs Group Inc. increased their price target on General Electric from $29.00 to $30.00 and gave the company a “neutral” rating in a research report on Monday, July 25th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the stock. General Electric presently has an average rating of “Hold” and an average target price of $32.65.
Shares of General Electric (NYSE:GE) opened at 29.62 on Monday. General Electric has a 1-year low of $26.22 and a 1-year high of $33.00. The company has a market capitalization of $265.43 billion, a P/E ratio of 25.04 and a beta of 1.15. The company has a 50-day moving average price of $30.58 and a 200 day moving average price of $30.81.
General Electric (NYSE:GE) last issued its quarterly earnings data on Friday, July 22nd. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.46 by $0.05. The firm earned $33.49 million during the quarter, compared to the consensus estimate of $31.76 billion. General Electric had a return on equity of 15.04% and a net margin of 9.14%. The company’s quarterly revenue was up 14.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.31 earnings per share. Equities research analysts anticipate that General Electric will post $1.50 EPS for the current year.
The company 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. The ex-dividend date of this dividend is Thursday, September 15th. This represents a $0.92 dividend on an annualized basis and a yield of 3.11%. General Electric’s payout ratio is 77.97%.
In other news, Chairman Jeffrey R. Immelt purchased 50,000 shares of the stock in a transaction on Tuesday, July 26th. The shares were acquired at an average price of $31.45 per share, for a total transaction of $1,572,500.00. Following the completion of the transaction, the chairman now directly owns 2,198,688 shares of the company’s stock, valued at approximately $69,148,737.60. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.23% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. 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 in the last quarter. Baxter Bros Inc. bought 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 in 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 in 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 in the last quarter. Hedge funds and other institutional investors own 55.81% of the company’s stock.
About General Electric
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