Is General Electric Company (GE) Stock Cheap Or Risky?


As of Thursday close, General Electric Company’s (NYSE:GE) stock was up $0.54, moving up 0.53 percent to $101.52. The average number of shares traded per day over the past five days has been 4,944,560 shares. 2 times new highs have been achieved over the past 5 days, with a -$2.49 fall in that time frame. In the last twenty days, the average volume was 4,983,010, while in the previous 50 days, it was 6,009,538.

Since last month, GE stock rose 5.52%. Shares of the company fell to $96.09 on 04/26/23, the lowest level in the past month. A 52-week high of $105.94 was reached on 05/22/23 after having rallying from a 52-week low of $46.77. Since the beginning of this year, GE’s stock price has risen by 55.27% or $36.44, and marked a new high 36 times. However, the stock has declined by -4.17% since its 52-week high.

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GE stock investors should be aware that General Electric Company (GE) stock had its last reported insider trading activity 4 days ago on May 22. Holston Michael J, the Senior Vice President of the company, disposed of 58,292 shares for $104.68 on May 22. It resulted in a $6,102,007 divestment by the insider. Strazik Scott sold 173,873 shares at an average price of $99.56 on May 10. The insider now owns 56,049 shares following the transaction. On May 01, Vice President Timko Thomas S sold 7,254 shares at $100.82 apiece. The transaction was valued at $731,348.

Valuation Metrics

Right now, General Electric Company (GE) has a P/E ratio of about 14.84. The stock’s beta is 1.29. Besides these, the trailing price-to-sales (P/S) ratio of 1.49, the price-to-book (PB) ratio of 3.49, and the price-to-cash flow ratio of 26.95 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 1.30, 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 0.64, and the total debt-to-equity ratio was 0.71. On the profitability front, the trailing twelve-month gross margin is 25.70% percent. In the year ended March 30, EBITDA margin amounted to 9.86%, whereas operating margins totaled 0.70%. Based on annual data, GE earned $21.02 billion in gross profit and brought in $76.56 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 -1.20%. Return on equity (ROE) for the past 12 months was 25.50%.

In General Electric Company’s quarter-end financial report for March 30, it reported total debt of $20.16 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 -17.63% to $21.79 billion during the quarter, while net income inched up to $14.49 billion. While analysts expected General Electric Company to report $0.14 quarterly earnings, the actual figure was $0.27 per share, beating the consensus estimate by 92.90%. During the quarter, the company generated $1.69 billion in EBITDA. The liabilities of General Electric Company were 131.65 billion at the end of its most recent quarter ended March 30, and its total debt was $24.5 billion. The value of shareholders’ equity is $1.09 billion.

Technical Picture

This quick technical analysis looks at General Electric Company’s (GE) price momentum. With a historical volatility rate of 25.88%, the RSI 9-day stood at 50.96% on 25 May.

With respect to its five-day moving average, the current General Electric Company price is down by -2.39% percent or -$2.49. At present, GE shares trade +3.53% above its 20-day simple moving average and +55.99% percent above its 100-day simple moving average. However, the stock is currently trading approximately +13.10% above its SMA50 and +74.44% above its SMA200.

Stochastic coefficient K was 45.44% and Stochastic coefficient D was 58.43%, while ATR was 2.14. Given the Stochastic reading of 46.29% for the 14-day period, the RSI (14) reading has been calculated as 54.67%. As of today, the MACD Oscillator reading stands at -1.22, while the 14-day reading stands at -0.27.

Analyst Ratings

General Electric Company (GE) has been rated Overweight by analysts. According to 0 brokerage firms, GE is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate General Electric Company stock as buy, with 12 recommending it as overweight.

With a median target price of $109.00, the current consensus forecast for the stock is $90.00 – $121.00. Based on these forecasts, analysts predict General Electric Company (GE) will achieve an average price target of $108.41.


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