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 note issued to investors 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.”
Other analysts also recently issued research reports about the company. Vetr upgraded General Electric from a “hold” rating to a “buy” rating and set a $30.83 price target on the stock in a research note on Monday, September 19th. William Blair set a $38.00 price target on General Electric and gave the company a “buy” rating in a research note on Thursday, September 8th. Stifel Nicolaus set a $34.00 price target on General Electric and gave the company a “buy” rating in a research note on Thursday, September 8th. Bank of America Corp. reissued a “buy” rating and issued a $37.00 price objective on shares of General Electric in a report on Thursday, October 6th. Finally, Citigroup Inc. decreased their price objective on General Electric from $36.00 to $35.00 and set a “buy” rating for the company in a report on Monday, October 10th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and eleven have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $32.56.
Shares of General Electric (NYSE:GE) opened at 31.05 on Wednesday. The stock has a market cap of $274.68 billion, a PE ratio of 26.70 and a beta of 1.20. General Electric has a 52-week low of $27.10 and a 52-week high of $33.00. The company’s 50 day moving average price is $29.59 and its 200 day moving average price is $30.44.
General Electric (NYSE:GE) last posted its quarterly earnings results on Friday, October 21st. The company reported $0.32 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.32. The business had revenue of $29.30 billion for the quarter, compared to the consensus estimate of $29.64 billion. General Electric had a return on equity of 16.08% and a net margin of 8.93%. The company’s quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.29 EPS. On average, analysts anticipate that General Electric will post $1.49 earnings per share for the current year.
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In other news, Chairman Jeffrey R. Immelt purchased 50,000 shares of the firm’s stock in a transaction on Wednesday, November 9th. The shares were bought at an average cost of $29.24 per share, for a total transaction of $1,462,000.00. Following the completion of the purchase, the chairman now directly owns 2,248,688 shares of the company’s stock, valued at $65,751,637.12. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.23% of the company’s stock.
Hedge funds have recently made changes to their positions in the stock. First Pacific Advisors LLC boosted its stake in shares of General Electric by 2.4% in the second quarter. First Pacific Advisors LLC now owns 10,649,460 shares of the company’s stock valued at $335,245,000 after buying an additional 253,960 shares during the last quarter. Rockefeller Financial Services Inc. boosted its stake in shares of General Electric by 7.0% in the second quarter. Rockefeller Financial Services Inc. now owns 318,258 shares of the company’s stock valued at $10,019,000 after buying an additional 20,893 shares during the last quarter. RS Investment Management Co. LLC boosted its stake in shares of General Electric by 0.3% in the second quarter. RS Investment Management Co. LLC now owns 1,090,981 shares of the company’s stock valued at $34,344,000 after buying an additional 2,955 shares during the last quarter. Chevy Chase Trust Holdings Inc. boosted its stake in shares of General Electric by 3.4% in the third quarter. Chevy Chase Trust Holdings Inc. now owns 8,689,301 shares of the company’s stock valued at $257,376,000 after buying an additional 284,348 shares during the last quarter. Finally, MSI Financial Services Inc boosted its stake in shares of General Electric by 5.1% in the second quarter. MSI Financial Services Inc now owns 697,010 shares of the company’s stock valued at $21,942,000 after buying an additional 33,634 shares during the last quarter. Institutional investors and hedge funds own 53.50% of the company’s stock.
About General Electric
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