Key Points
- GE Aerospace VP Robert Giglietti sold 14,796 shares for about $4.92 million, reducing his reported stake by 42.28% to 20,201 shares.
- The company beat quarterly expectations, reporting EPS of $2.25 versus analysts’ $2.01 estimate and revenue of $13.29 billion, up 24.7% year over year.
- Analysts maintain a consensus “Moderate Buy” rating and an average price target of $373.45; the article also notes potential engine-inspection concerns after GE updated guidance for certain GEnx-1B engines.
GE Aerospace (NYSE:GE - Get Free Report) VP Robert Giglietti sold 14,796 shares of the stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $332.54, for a total value of $4,920,261.84. Following the completion of the sale, the vice president owned 20,201 shares of the company's stock, valued at $6,717,640.54. This trade represents a 42.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.
GE Aerospace Price Performance
Shares of GE opened at $314.25 on Friday. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.68 and a current ratio of 0.98. The stock has a 50 day simple moving average of $315.07 and a 200 day simple moving average of $323.07. GE Aerospace has a 52-week low of $268.91 and a 52-week high of $388.84. The firm has a market capitalization of $324.73 billion, a PE ratio of 36.25, a P/E/G ratio of 2.24 and a beta of 1.43.
GE Aerospace (NYSE:GE - Get Free Report) last posted its earnings results on Tuesday, October 20th. The company reported $2.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.01 by $0.24. The business had revenue of $13.29 billion during the quarter, compared to analysts' expectations of $12.88 billion. GE Aerospace had a return on equity of 44.43% and a net margin of 17.31%. GE Aerospace's revenue for the quarter was up 24.7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.66 EPS. Sell-side analysts predict that GE Aerospace will post 8.16 EPS for the current fiscal year.
GE Aerospace Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Monday, October 5th were issued a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, October 5th. GE Aerospace's dividend payout ratio (DPR) is presently 21.68%.
Key Stories Impacting GE Aerospace
Here are the key news stories impacting GE Aerospace this week:
- Positive Sentiment: Delayed aircraft deliveries are keeping older planes in service longer, supporting demand for engine maintenance, replacement parts and shop visits. GE Aerospace’s commercial services backlog is reported at about $170 billion, making this a potential longer-term tailwind. GE Aerospace stock faces Boeing delays as maintenance demand rises
- Positive Sentiment: GE Aerospace is set to supply gas-turbine engines for two U.S. Navy destroyers, adding defense-related work and potential follow-on service revenue. GE Aerospace to Supply Engines for Two US Navy Flight III Destroyers
- Positive Sentiment: Technical coverage noted GE recently moved above its 200-day moving average, a signal some investors view as supportive of the longer-term trend. GE Aerospace recently broke out above the 200-day moving average
- Neutral Sentiment: CEO Larry Culp said U.S. midterm election results do not have much impact on GE Aerospace’s business, suggesting limited direct exposure to the political outcome. GE Aerospace CEO Larry Culp on midterm results
- Negative Sentiment: GE updated inspection guidance for certain GEnx-1B engines after a study identified early turbine-blade cracks. Additional inspections could complicate airline schedules and raise near-term service demands or costs; reports linked the issue to recent share weakness. GE updates engine checks after study flags early blade cracks
- Negative Sentiment: A GE Aerospace vice president sold 14,796 shares, reducing his reported stake by about 42%. Insider sales can have varied reasons, but the transaction may add to near-term caution. GE Aerospace insider transaction report
- Negative Sentiment: ETFs were reported as net sellers of GE shares, while commentary also notes the stock’s premium valuation, leaving less room for disappointment in execution or growth. ETFs are net sellers of General Electric
Wall Street Analyst Weigh In
GE has been the subject of a number of research reports. JPMorgan Chase & Co. lowered their target price on GE Aerospace from $400.00 to $375.00 and set an "overweight" rating for the company in a report on Wednesday, October 21st. Melius Research set a $350.00 price objective on GE Aerospace and gave the stock a "hold" rating in a research report on Monday, September 14th. The Goldman Sachs Group reiterated a "buy" rating and set a $410.00 price objective on shares of GE Aerospace in a report on Monday, July 20th. Susquehanna dropped their target price on GE Aerospace from $430.00 to $400.00 and set a "positive" rating on the stock in a research report on Wednesday, October 21st. Finally, Guggenheim set a $380.00 price target on GE Aerospace in a research report on Wednesday, October 21st. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $373.45.
Check Out Our Latest Stock Analysis on GE
Hedge Funds Weigh In On GE Aerospace
Hedge funds have recently modified their holdings of the stock. Amundi increased its holdings in GE Aerospace by 135.2% during the first quarter. Amundi now owns 6,119,975 shares of the company's stock worth $1,736,665,000 after buying an additional 3,518,278 shares during the last quarter. Jupiter Topco LLC bought a new position in shares of GE Aerospace in the 2nd quarter valued at about $1,283,858,000. Wellington Management Group LLP grew its position in shares of GE Aerospace by 97.3% in the 2nd quarter. Wellington Management Group LLP now owns 6,797,935 shares of the company's stock valued at $2,540,592,000 after acquiring an additional 3,352,432 shares during the period. Jennison Associates LLC grew its position in shares of GE Aerospace by 37.7% in the 1st quarter. Jennison Associates LLC now owns 11,026,006 shares of the company's stock valued at $3,128,850,000 after acquiring an additional 3,017,937 shares during the period. Finally, State Street Corp increased its stake in shares of GE Aerospace by 2.6% during the 2nd quarter. State Street Corp now owns 46,497,628 shares of the company's stock worth $17,377,559,000 after purchasing an additional 1,160,584 shares during the last quarter. Institutional investors own 74.77% of the company's stock.
GE Aerospace Company Profile
(
Get Free Report)
GE Aerospace (NYSE: GE) is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.
GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.
Further Reading
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