General Electric (GE) Shares Gap Down on Disappointing Earnings

General Electric (NYSE:GE) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $11.76, but opened at $11.16. General Electric shares last traded at $10.18, with a volume of 344835031 shares changing hands.

The conglomerate reported $0.14 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.06). General Electric had a positive return on equity of 10.40% and a negative net margin of 6.59%. The firm had revenue of $29.57 billion during the quarter, compared to analysts’ expectations of $30.08 billion. During the same period in the previous year, the firm earned $0.29 earnings per share. The firm’s quarterly revenue was down 3.6% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which was paid on Thursday, October 25th. Investors of record on Monday, September 17th were paid a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 4.75%. The ex-dividend date was Friday, September 14th. General Electric’s payout ratio is 45.71%.



Several research analysts recently commented on GE shares. Bank of America reaffirmed a “hold” rating and issued a $14.00 target price on shares of General Electric in a research note on Thursday, October 4th. Credit Suisse Group set a $12.00 target price on shares of General Electric and gave the stock a “neutral” rating in a research note on Wednesday. Royal Bank of Canada reaffirmed a “neutral” rating and issued a $15.00 target price on shares of General Electric in a research note on Wednesday, August 8th. ValuEngine raised shares of General Electric from a “strong sell” rating to a “sell” rating in a research note on Saturday, October 6th. Finally, Zacks Investment Research raised shares of General Electric from a “sell” rating to a “hold” rating in a research note on Tuesday, July 24th. Five analysts have rated the stock with a sell rating, twelve have given a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $15.50.

A number of large investors have recently added to or reduced their stakes in the stock. Archford Capital Strategies LLC bought a new stake in shares of General Electric during the 1st quarter valued at $121,000. Fusion Family Wealth LLC boosted its holdings in shares of General Electric by 153.3% during the 2nd quarter. Fusion Family Wealth LLC now owns 8,264 shares of the conglomerate’s stock valued at $112,000 after buying an additional 5,002 shares in the last quarter. Mount Yale Investment Advisors LLC bought a new stake in shares of General Electric during the 1st quarter valued at $116,000. Amussen Hunsaker Associates LLC bought a new stake in shares of General Electric during the 2nd quarter valued at $134,000. Finally, Private Capital Management LLC bought a new stake in shares of General Electric during the 2nd quarter valued at $136,000. Institutional investors and hedge funds own 53.75% of the company’s stock.

The firm has a market cap of $98.11 billion, a P/E ratio of 9.62, a price-to-earnings-growth ratio of 2.19 and a beta of 0.96. The company has a current ratio of 1.81, a quick ratio of 1.51 and a debt-to-equity ratio of 1.39.

General Electric Company Profile (NYSE:GE)

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

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