Technicals Say General Electric Company (GE) Is Worth Holding

At the last check on Friday, General Electric Company’s (NYSE:GE) stock was up $1.43, moving up 1.95 percent to $74.71. The average number of shares traded per day over the past five days has been 6,239,386 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.74 fall in that time frame. In the last twenty days, the average volume was 8,162,702, while in the previous 50 days, it was 6,898,829.

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Since last month, GE stock retreated -18.58%. Shares of the company fell to $71.14 on 05/10/22, the lowest level in the past month. A 52-week high of $116.17 was reached on 01/18/22 after having rallying from a 52-week low of $71.14. Since the beginning of this year, GE’s stock price has dropped by -22.43% or -$19.97, and marked a new high 8 times. However, the stock has declined by -35.69% since its 52-week high.

General Electric Company (GE) last reported insider trading activity 2 days ago on May 11. Pecresse Jerome, the Senior Vice President of the company, disposed of 1,442 shares for $74.13 on May 11. It resulted in a $106,895 divestment by the insider. Reynolds Paula Rosput added 1,200 shares at an average price of $77.65 on May 06. The insider now owns 5,563 shares following the transaction. On May 06, 10% Owner GENERAL ELECTRIC CO sold 72,025,826 shares at $34.45 apiece. The transaction was valued at $2,481,289,706.

Valuation Metrics

The stock’s beta is 1.03. Besides these, the trailing price-to-sales (P/S) ratio of 1.09, the price-to-book (PB) ratio of 2.07, and the price-to-cash flow ratio of 27.84 may also be considered.

The latest dividend of $0.08 per share was paid out, remained unchanged from last year’s $0.08. On Friday December 7 2018, a $0.88 dividend decrease was announced.

Financial Health

In the three months ended March 30, General Electric Company’s quick ratio stood at 0.90, while its current ratio was 1.20, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.73, and the total debt-to-equity ratio was 0.86. On the profitability front, the trailing twelve-month gross margin is 25.20% percent. In the year ended March 30, operating margins totaled -7.60%. Based on annual data, GE earned $20.3 billion in gross profit and brought in $74.2 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -5.80%. Return on equity (ROE) for the past 12 months was -13.30%.

In General Electric Company’s quarter-end financial report for March 30, it reported total debt of $28.65 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. GE’s revenue fell -0.46% to $20.37 billion during the quarter, while net income inched up to $17.04 billion. While analysts expected General Electric Company to report $0.19 quarterly earnings, the actual figure was $0.24 per share, beating the consensus estimate by 26.30%. During the quarter, the company generated $1.78 billion in EBITDA. The liabilities of General Electric Company were 151.68 billion at the end of its most recent quarter ended March 30, and its total debt was $36.31 billion. The value of shareholders’ equity is $1.1 billion.

Technical Picture

This quick technical analysis looks at General Electric Company’s (GE) price momentum. With a historical volatility rate of 47.12%, the RSI 9-day stood at 35.18% on 12 May.

With respect to its five-day moving average, the current General Electric Company price is down by -4.77% percent or -$3.74. At present, GE shares trade -17.98% below its 20-day simple moving average and -17.21% percent below its 100-day simple moving average. However, the stock is currently trading approximately -19.42% below its SMA50 and -29.93% below its SMA200.

Stochastic coefficient K was 13.87% and Stochastic coefficient D was 9.67%, while ATR was 3.19. Given the Stochastic reading of 23.81% for the 14-day period, the RSI (14) reading has been calculated as 33.84%. As of today, the MACD Oscillator reading stands at -2.31, while the 14-day reading stands at -2.88.

Analyst Ratings

RBC Capital Mkts reiterated its an Outperform rating on General Electric Company (NYSE: GE) in a note to investors. The analysts firm has however raised their price target to $113, representing a possible 30.82% increase in the stock price. General Electric Company (GE) has been rated Overweight by analysts. According to 0 brokerage firms, GE is a sell, and 8 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate General Electric Company stock as buy, with 12 recommending it as overweight.

With a median target price of $107.00, the current consensus forecast for the stock is $84.00 – $129.00. Based on these forecasts, analysts predict General Electric Company (GE) will achieve an average price target of $107.06.


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