Shares of GE Aerospace (NYSE: GE) have been downgraded from a “buy” to a “hold” rating by Wall Street Zen, as reported in a research note published on Saturday. This change comes after a series of adjustments by various financial analysts regarding the company’s stock performance and outlook.
Several financial institutions have recently expressed differing views on GE Aerospace. For instance, Bank of America raised its target price for the company’s shares from $310.00 to $365.00, maintaining a “buy” rating. This update was issued on October 27, 2023. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating in a note dated September 26, 2023.
On the same day as Bank of America’s update, JPMorgan Chase & Co. increased its price target on GE Aerospace from $275.00 to $325.00, assigning the company an “overweight” rating. TD Cowen also lifted its price target, moving it from $300.00 to $330.00, while reiterating a “buy” rating in a research note on October 7, 2023. In contrast, BNP Paribas Exane initiated coverage on GE Aerospace with an “underperform” rating on November 18, 2023.
Overall, the sentiment surrounding GE Aerospace appears mixed. According to data from MarketBeat.com, fifteen analysts have rated the stock as a “buy,” while two analysts assigned a “hold” rating, and two others issued a “sell” rating. The consensus rating overall indicates a “Moderate Buy” with an average price target of $301.27.
Quarterly Earnings Exceed Expectations
On October 21, 2023, GE Aerospace released its quarterly earnings, reporting earnings per share (EPS) of $1.66. This figure surpassed analysts’ expectations of $1.46 by $0.20. The company achieved a net margin of 18.34% and a return on equity of 34.01%, demonstrating strong performance metrics.
Revenue for the quarter reached $11.31 billion, significantly higher than the consensus estimate of $10.29 billion, marking a remarkable 26.4% increase compared to the same quarter last year. Looking ahead, GE Aerospace has set its fiscal year 2025 guidance at an EPS range of 6.000-6.200. Analysts predict that the company will post an EPS of 5.4 for the current fiscal year.
Dividend Announcement and Insider Activity
In addition to its earnings report, GE Aerospace also announced a quarterly dividend of $0.36 per share, which was paid out on October 27, 2023. Shareholders on record as of September 29, 2023, received this dividend, resulting in an annualized yield of 0.5% and a payout ratio of 19.23%.
In related news, Russell Stokes, Senior Vice President of GE Aerospace, sold 8,000 shares of the company’s stock on November 19, 2023, at an average price of $297.71. The total transaction amounted to approximately $2.38 million. After the sale, Stokes holds 150,434 shares valued at around $44.79 million, representing a 5.05% decrease in his ownership stake.
Currently, corporate insiders own 0.21% of GE Aerospace’s stock, while institutional investors hold a significant 74.77% of the company’s shares. Notably, several large investors have adjusted their positions in GE Aerospace during the third quarter.
For example, Jacobsen Capital Management increased its stake by 1.4%, now owning 2,295 shares valued at $690,000. Similarly, Harfst & Associates Inc. raised its holdings by 0.4%, now holding 7,444 shares valued at $2.24 million. Other institutional investors, such as Ledyard National Bank and Hardy Reed LLC, also reported minor increases in their positions during this period.
As GE Aerospace navigates these analyst ratings and market fluctuations, its strong earnings performance continues to attract attention from both analysts and investors alike.
