GE Aerospace (NYSE:GE) received a significant revision in its stock rating from Wall Street Zen, which downgraded the company from a “buy” rating to a “hold” rating in a research note issued on Saturday morning. This shift reflects a broader reassessment of the company’s performance and market conditions.
Several other financial institutions have also recently adjusted their outlook on GE Aerospace. On October 27, 2023, Bank of America raised its target price for the company’s shares from $310.00 to $365.00 while maintaining a “buy” rating. Similarly, JPMorgan Chase & Co. increased its price objective from $275.00 to $325.00, categorizing the stock as “overweight.” In contrast, Zacks Research reduced its rating from “strong-buy” to “hold” on September 26.
In a further shift, TD Cowen raised its price objective from $300.00 to $330.00, also issuing a “buy” rating. On November 18, BNP Paribas Exane began coverage of GE Aerospace, setting an “underperform” rating. The consensus among fifteen equity research analysts is that the stock carries a “Moderate Buy” rating, with a consensus price target of $301.27, according to MarketBeat.com.
Recent Performance and Earnings Update
On October 21, GE Aerospace reported its quarterly earnings results, indicating a robust performance. The company recorded earnings per share (EPS) of $1.66, surpassing analysts’ projections of $1.46 by $0.20. The firm achieved a net margin of 18.34% and a return on equity of 34.01%. Revenue for the quarter reached $11.31 billion, significantly above the consensus estimate of $10.29 billion. This marks a 26.4% increase in revenue year-over-year. GE Aerospace has set its fiscal year 2025 guidance at an EPS of between 6.000 and 6.200. Analysts predict that the company will achieve an EPS of 5.4 for the current fiscal year.
Dividend Declaration and Insider Activity
In addition to its earnings report, GE Aerospace announced a quarterly dividend of $0.36 per share, which was paid on October 27. Shareholders of record on September 29 received this dividend, representing an annualized yield of 0.5%. The ex-dividend date was also September 29, with a payout ratio of 19.23%.
In related news, Senior Vice President Russell Stokes sold 8,000 shares on November 19 at an average price of $297.71, totaling approximately $2.38 million. Post-sale, Stokes retains ownership of 150,434 shares valued at around $44.79 million, reflecting a 5.05% decrease in his stake in the company. Insider ownership now accounts for 0.21% of the stock.
Institutional Investment Trends
Recent modifications in institutional holdings reveal a mixed trend among large investors. Jacobsen Capital Management increased its stake in GE Aerospace by 1.4% during the third quarter, acquiring an additional 32 shares. Harfst & Associates Inc. added 33 shares, raising its total holdings by 0.4%. Ledyard National Bank and Hardy Reed LLC also boosted their stakes by 1.2% and 0.7%, respectively.
RMG Wealth Management LLC, however, increased its position by 8.3%, now owning 442 shares worth $132,000. Collectively, hedge funds and institutional investors control 74.77% of GE Aerospace’s stock, indicating strong institutional confidence in the company.
GE Aerospace, also known as General Electric, specializes in aerospace products and services. It operates through two segments: Commercial Engines and Services and Defense and Propulsion Technologies, providing jet and turboprop engines for a wide range of aviation applications. As the company navigates these market adjustments, analysts and investors alike will be closely monitoring its upcoming performance and strategic decisions.
