Shares of GE Aerospace (NYSE: GE) received a downgrade from a buy to a hold rating by Wall Street Zen in a research note published on October 28, 2023. This change comes in the wake of recent quarterly earnings results that exceeded analysts’ expectations, reflecting a complex outlook for the aerospace giant.
Several other financial institutions have also weighed in on GE Aerospace’s stock. On October 27, Bank of America increased its target price from $310.00 to $365.00, maintaining a buy rating. Conversely, Zacks Research downgraded the stock from a strong-buy to a hold rating on September 26, 2023. Meanwhile, JPMorgan Chase & Co. raised its price objective from $275.00 to $325.00, assigning an overweight rating, and TD Cowen upped its target from $300.00 to $330.00, also maintaining a buy rating.
Analysts currently provide a mixed consensus on the stock, with fifteen equities research analysts rating it as a buy, two giving it a hold rating, and two issuing sell ratings. According to data from MarketBeat.com, GE Aerospace holds a consensus rating of “Moderate Buy” with a target price of approximately $301.27.
Quarterly Performance Surpasses Expectations
On October 21, 2023, GE Aerospace reported its latest quarterly earnings, announcing earnings per share (EPS) of $1.66, which surpassed the consensus estimate of $1.46 by $0.20. The company’s revenue reached $11.31 billion, significantly above the anticipated $10.29 billion, marking a year-over-year revenue increase of 26.4%.
The firm also demonstrated strong financial health, with a net margin of 18.34% and a return on equity of 34.01%. Looking ahead, GE Aerospace has set its fiscal year 2025 guidance at an EPS range of 6.000-6.200, while analysts predict an EPS of 5.4 for the current fiscal year.
Dividend Announcement 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, 2023, to shareholders of record as of September 29, 2023. This dividend represents an annualized payout of $1.44 and a yield of 0.5%, with a payout ratio of 19.23%.
In a noteworthy insider transaction, Russell Stokes, Senior Vice President, sold 8,000 shares of the company’s stock on November 19, 2023, at an average price of $297.71, totaling approximately $2.38 million. Following this sale, Stokes continues to hold 150,434 shares valued at around $44.79 million, indicating a decrease in his ownership stake by 5.05%.
Institutional Investor Movements
Recent activity shows that institutional investors have been adjusting their positions in GE Aerospace. For instance, Jacobsen Capital Management increased its stake by 1.4% during the third quarter, now owning 2,295 shares valued at $690,000. Other firms, including Harfst & Associates Inc. and Ledyard National Bank, have also slightly increased their holdings.
Overall, institutional investors now own around 74.77% of GE Aerospace’s stock, underscoring the significant interest from larger investment entities. As the company navigates a fluctuating market, the mixed analyst ratings and institutional trading patterns could impact its future performance and investment strategies.
