WCM Investment Management LLC has lowered its stake in GE Aerospace (NYSE: GE), reducing its holdings by 1.4% during the third quarter of 2023. The firm’s latest filing with the Securities and Exchange Commission (SEC) reveals that it now owns 2,354,225 shares after selling 34,427 shares in this period. With this adjustment, GE Aerospace constitutes roughly 1.4% of WCM’s investment portfolio, ranking as its 26th largest holding. As of the most recent filing, WCM held approximately 0.22% of GE Aerospace, valued at around $691.3 million.
Several other institutional investors have also made significant movements regarding their positions in GE Aerospace. In the second quarter, Norges Bank entered the market with a new stake worth approximately $3.41 billion. Meanwhile, Jennison Associates LLC increased its holdings by 21.5% during the third quarter, bringing its total to 8,430,878 shares valued at $2.54 billion after acquiring an additional 1,494,541 shares.
Vanguard Group Inc. also expanded its investment, increasing its holdings by 1.6% in the second quarter. Following this increase, Vanguard now owns 91,989,511 shares, worth about $23.68 billion. Notably, Lazard Asset Management LLC made a more dramatic move, lifting its position in GE Aerospace by an astonishing 4,253.7%, acquiring a total of 796,422 shares valued at $205 million.
As of now, institutional investors collectively own approximately 74.77% of GE Aerospace’s stock. The company’s performance on the market remains robust, with shares opening at $308.93 on Tuesday. The firm boasts a market capitalization of $325.86 billion, a P/E ratio of 37.95, and a PEG ratio of 2.83.
Financial Performance and Dividend Announcement
GE Aerospace reported earnings results on January 22, 2024, showcasing a strong performance with earnings per share (EPS) of $1.57, surpassing the consensus estimate of $1.43 by $0.14. The company achieved a net margin of 18.98% and a return on equity of 35.52%. Revenue for the quarter reached $11.90 billion, exceeding analyst forecasts of $11.27 billion and marking a year-over-year increase of 17.6%.
In addition to its financial results, GE Aerospace announced a quarterly dividend of $0.36, which was paid on January 26, 2024, to stockholders of record as of December 29, 2023. This dividend translates to an annualized total of $1.44, representing a dividend yield of 0.5%. The company’s dividend payout ratio currently stands at 17.69%.
Analyst Ratings and Market Sentiment
Recent analyst reports reflect varied sentiments regarding GE Aerospace. BNP Paribas Exane reduced its price target from $305.00 to $290.00, assigning an “underperform” rating. Conversely, JPMorgan Chase & Co. increased its target price from $325.00 to $335.00, issuing an “overweight” rating, indicating optimism about the company’s growth potential.
Citigroup maintained a “buy” rating with a revised target of $380.00. Other analysts have echoed this positive sentiment, with one research analyst rating the stock as a Strong Buy. Overall, the consensus rating remains a “Moderate Buy” with a target price of $319.00, according to MarketBeat.com.
In a recent insider transaction, Senior Vice President Russell Stokes sold 8,000 shares of GE Aerospace on November 19, 2023, at an average price of $297.71, totaling approximately $2.38 million. Following this sale, he retains 150,434 shares valued at around $44.79 million.
Looking ahead, GE Aerospace is engaged in further developments that could impact its market position. The company is expanding research and development efforts in Singapore to co-develop AI and propulsion technology, which is expected to support its long-term product pipeline and enhance international collaborations.
Despite recent challenges, including a potential durability issue identified with an engine seal for the 777X aircraft, GE Aerospace’s overall outlook remains positive, bolstered by upgrades to its credit ratings and analyst confidence in its growth trajectory.
