Is General Electric Company (GE) Good For Your Portfolio?


General Electric Company (NYSE:GE) saw an upside of 2.69% to close Monday at $79.77 after adding $2.09 on the day. The 5-day average trading volume is 9,191,340 shares of the company’s common stock. It has gained $81.18 in the past week and touched a new high 2 times within the past 5 days. An average of 8,858,369 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,883,407.

GE’s 1-month performance is 27.26% or $16.24 on its low of $63.15 reached on 12/28/22. The company’s shares have touched a 52-week low of $46.77 and high of $81.18, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, GE has achieved 22.00% or $14.69 and has reached a new high 11 times. However, the current price is down -1.74% from the 52-week high price.

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Insider Transactions

GE stock investors last saw insider trading activity on May 11.Pecresse Jerome (Senior Vice President) most recently sold 1,442 shares at $74.13 per share on May 11. This transaction cost the insider $106,895. 10% Owner, GENERAL ELECTRIC CO, sold 72,025,826 shares at a price of $34.45 on May 06.

Valuation Metrics

GE stock has a beta of 1.28. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.15 while the price-to-book (PB) in the most recent quarter is 2.78, with the price to cash flow ratio at 44.48.

General Electric Company’s quick ratio for the period ended September 29 was 0.80, with the current ratio over the same period at 1.10. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.83, while the total debt to equity was 0.97. In terms of profitability, the gross margin trailing 12 months is 25.00%. The firm’s gross profit as reported stood at $20.3 billion against revenue of $74.2 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 606.3% to -$238.0 million, while revenue of -$857.0 million was -260.08% off the previous quarter. Analysts expected GE to announce $0.46 per share in earnings in its latest quarter, but it posted $0.35, representing a -23.90% surprise. EBITDA for the quarter stood at more than $1.8 billion. GE stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 148.12 billion, with total debt at $32.91 billion. Shareholders hold equity totaling $1.09 billion.

Let’s look briefly at General Electric Company (GE) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 73.04% to suggest the stock is trending Overbought, with historical volatility in this time period at 31.48%.

The stock’s 5-day moving average is $78.81, reflecting a -0.54% or -$0.43 change from its current price. GE is currently trading +23.77% above its 20-day SMA, +35.05% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +22.27% and SMA200 by+13.99%.

Stochastic %K and %D was 81.97% and 83.74% and the average true range (ATR) pointed at 2.08. The RSI (14) points at 72.42%, while the 14-day stochastic is at 91.35% with the period’s ATR at 2.00. The stock’s 9-day MACD Oscillator is pointing at -0.35 and 2.52 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for General Electric Company (NYSE: GE), RBC Capital Mkts reiterated its an Outperform rating for the company but lifted their price target by $93 to $98. Analysts offering their rating for GE stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate GE as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 12 have offered a “buy” rating.

What is GE’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $67.11 and a high of $93.00, with their median price target at $83.00. Looking at these predictions, the average price target given by analysts is for General Electric Company (GE) stock is $81.89.


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