General Electric (NYSE:GE) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of General Electric (NYSE:GE) from a strong-buy rating to a hold rating in a report released on Friday morning, Zacks.com reports. They currently have $12.00 price objective on the conglomerate’s stock.

According to Zacks, “General Electric's shares have outperformed its industry year to date. In second-quarter 2019, the company’s earnings surpassed estimates by 41.7%. In the quarters ahead, it believes that it will gain from its portfolio restructuring program, digital business, efforts to reduce leverage, commercial presence internationally and improvement in segmental business. Its adjusted earnings per share in 2019 are predicted to be 55-65 cents per share, higher than the previously stated 50-60 cents. Healthy business in Aviation, Healthcare and Renewable Energy segments as well as steps to improve the Power segment will be boon. Projections for organic sales for Industrial have been raised. Also, the company believes that it is on track to dispose of GE Capital’s assets worth roughly $10 billion in 2019 as well as improve its liquidity position.”

A number of other equities research analysts also recently issued reports on GE. Cowen reissued a hold rating and set a $8.00 price target on shares of General Electric in a research report on Wednesday, May 1st. UBS Group downgraded General Electric from a buy rating to a neutral rating and lowered their price target for the company from $13.00 to $11.50 in a research report on Monday, July 15th. William Blair reissued a buy rating on shares of General Electric in a research report on Thursday, June 13th. Deutsche Bank set a $10.00 price target on General Electric and gave the company a hold rating in a research report on Thursday, May 2nd. Finally, JPMorgan Chase & Co. reissued a sell rating on shares of General Electric in a research report on Wednesday, July 31st. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eight have assigned a buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $11.68.

Shares of NYSE:GE traded down $0.36 during midday trading on Friday, reaching $9.64. The company’s stock had a trading volume of 28,778,643 shares, compared to its average volume of 50,984,664. The firm has a market cap of $87.27 billion, a price-to-earnings ratio of 14.83, a price-to-earnings-growth ratio of 2.21 and a beta of 1.03. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.50 and a current ratio of 1.73. General Electric has a 1 year low of $6.66 and a 1 year high of $13.78. The company’s 50 day moving average is $10.35.

General Electric (NYSE:GE) last announced its quarterly earnings data on Wednesday, July 31st. The conglomerate reported $0.17 EPS for the quarter, beating the Zacks’ consensus estimate of $0.12 by $0.05. The business had revenue of $28.83 billion during the quarter, compared to the consensus estimate of $28.83 billion. General Electric had a positive return on equity of 10.64% and a negative net margin of 15.38%. The business’s revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.19 earnings per share. Analysts expect that General Electric will post 0.62 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 25th. Shareholders of record on Monday, July 1st were paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.41%. The ex-dividend date of this dividend was Friday, June 28th. General Electric’s dividend payout ratio is presently 6.15%.

In related news, Director Edward P. Garden sold 3,370,314 shares of the business’s stock in a transaction dated Friday, May 24th. The stock was sold at an average price of $9.53, for a total value of $32,119,092.42. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Edward P. Garden sold 1,289,538 shares of the business’s stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $10.02, for a total value of $12,921,170.76. Following the completion of the transaction, the director now owns 25,000 shares in the company, valued at approximately $250,500. The disclosure for this sale can be found here. Insiders own 1.13% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in GE. Ashburton Jersey Ltd acquired a new stake in General Electric during the second quarter valued at approximately $25,000. Employers Holdings Inc. acquired a new stake in General Electric during the second quarter valued at approximately $28,000. Arbor Wealth Management LLC acquired a new stake in General Electric during the fourth quarter valued at approximately $30,000. Manchester Financial Inc. acquired a new stake in General Electric during the second quarter valued at approximately $30,000. Finally, SevenBridge Financial Group LLC raised its stake in General Electric by 100.4% during the fourth quarter. SevenBridge Financial Group LLC now owns 4,193 shares of the conglomerate’s stock valued at $32,000 after buying an additional 2,101 shares in the last quarter. Hedge funds and other institutional investors own 57.81% of the company’s stock.

General Electric Company Profile

General Electric Company operates as a high-tech industrial company worldwide. It operates through Power, Renewable Energy, Aviation, Oil & Gas, Healthcare, Transportation, Lighting, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and high voltage equipment; and power generation services.

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