GE Aerospace (NYSE: GE) experienced a downgrade from a “buy” rating to a “hold” rating by Wall Street Zen in a research note issued on October 27, 2023. This change comes alongside a flurry of mixed evaluations from other financial analysts regarding the company’s stock performance.
In contrast to Wall Street Zen’s assessment, Bank of America raised its target price for GE Aerospace shares from $310.00 to $365.00, maintaining a “buy” rating. This announcement was made in a report released on the same day as the downgrade. Additionally, JPMorgan Chase & Co. increased their price objective for the stock from $275.00 to $325.00, also issuing an “overweight” rating. These reports highlight a divergence in analyst sentiment.
Recent Earnings and Financials
GE Aerospace reported its quarterly earnings on October 21, 2023, revealing earnings per share (EPS) of $1.66. This figure exceeded analysts’ expectations of $1.46 by $0.20. The company also achieved a net margin of 18.34% and a return on equity of 34.01%. Revenue for the quarter reached $11.31 billion, surpassing the consensus estimate of $10.29 billion, and marking a 26.4% increase from the same period last year.
Looking ahead, GE Aerospace has set its fiscal year 2025 guidance between $6.000 and $6.200 EPS. Analysts project that the company will achieve an EPS of $5.4 for the current fiscal year.
Dividends and Insider Trading
In addition to its earnings report, GE Aerospace recently announced a quarterly dividend of $0.36 per share, paid on October 27, 2023, to shareholders of record as of September 29, 2023. This dividend translates to an annualized rate of $1.44, yielding approximately 0.5%. The company’s payout ratio stands at 19.23%.
Insider trading activity has also been notable, with Russell Stokes, Senior Vice President, selling 8,000 shares of the company’s stock on November 19, 2023, at an average price of $297.71. This transaction totaled approximately $2,381,680.00 and represented a 5.05% decrease in Stokes’ ownership. Following the sale, he retained 150,434 shares valued at around $44,785,706.14.
Institutional Holdings and Market Sentiment
Institutional trading has been active, with several large investors modifying their stakes in GE Aerospace. For example, Jacobsen Capital Management increased its position by 1.4% in the third quarter, now owning 2,295 shares valued at $690,000. Other firms, including Harfst & Associates Inc. and Ledyard National Bank, have similarly adjusted their holdings, indicating ongoing interest in the company. Overall, institutional investors control 74.77% of GE Aerospace’s stock.
Despite the mixed analyst ratings, GE Aerospace maintains a consensus rating of “Moderate Buy” with a consensus price target of $301.27 according to data from MarketBeat.com. As the company navigates these fluctuating perceptions, it continues to deliver robust financial results and significant market presence in the aerospace sector.
