General Electric (NYSE:GE) Shares Up 4.2% on Earnings Beat

by · The Markets Daily

Shares of General Electric (NYSE:GE – Get Free Report) shot up 4.2% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $184.24 and last traded at $184.07. 2,911,609 shares traded hands during trading, a decline of 54% from the average session volume of 6,352,807 shares. The stock had previously closed at $176.66.

The conglomerate reported $1.15 earnings per share for the quarter, beating analysts’ consensus estimates of $1.13 by $0.02. The business had revenue of $9.84 billion during the quarter, compared to analyst estimates of $9.02 billion. General Electric had a net margin of 7.66% and a return on equity of 16.07%. The company’s revenue was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.82 earnings per share.

General Electric Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 25th. Shareholders of record on Thursday, September 26th will be paid a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 0.61%. The ex-dividend date is Thursday, September 26th. General Electric’s payout ratio is 36.72%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Citigroup lifted their price target on shares of General Electric from $198.00 to $216.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Barclays lifted their price target on shares of General Electric from $175.00 to $200.00 and gave the company an “overweight” rating in a research report on Tuesday, July 30th. UBS Group increased their price objective on shares of General Electric from $201.00 to $209.00 and gave the stock a “buy” rating in a research report on Monday, July 1st. Deutsche Bank Aktiengesellschaft raised their target price on shares of General Electric from $212.00 to $235.00 and gave the company a “buy” rating in a research note on Thursday, October 3rd. Finally, Melius Research upped their price target on shares of General Electric from $194.00 to $202.00 in a research report on Tuesday. Two analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $198.87.

Read Our Latest Research Report on GE

Institutional Investors Weigh In On General Electric

Institutional investors have recently modified their holdings of the stock. Newport Trust Company LLC bought a new stake in General Electric during the second quarter valued at $2,613,332,000. Capital World Investors grew its position in shares of General Electric by 2,818.1% during the 1st quarter. Capital World Investors now owns 12,749,560 shares of the conglomerate’s stock valued at $2,237,930,000 after buying an additional 12,312,648 shares during the last quarter. Capital International Investors raised its stake in General Electric by 9.9% during the first quarter. Capital International Investors now owns 59,100,643 shares of the conglomerate’s stock worth $10,373,936,000 after acquiring an additional 5,309,543 shares during the period. Canada Pension Plan Investment Board lifted its holdings in General Electric by 221.6% in the first quarter. Canada Pension Plan Investment Board now owns 7,121,741 shares of the conglomerate’s stock worth $1,250,079,000 after acquiring an additional 4,907,530 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA bought a new position in General Electric in the second quarter worth about $580,200,000. Institutional investors and hedge funds own 74.77% of the company’s stock.

General Electric Price Performance

The company has a debt-to-equity ratio of 0.95, a current ratio of 1.14 and a quick ratio of 0.85. The company has a fifty day moving average price of $179.24 and a 200 day moving average price of $168.05. The company has a market capitalization of $202.40 billion, a P/E ratio of 60.35, a price-to-earnings-growth ratio of 1.86 and a beta of 1.18.

About General Electric

(Get Free Report)

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.

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