Shares of GE Aerospace (NYSE: GE) have been downgraded from a “buy” rating to a “hold” rating by Wall Street Zen, according to a research note released on October 21, 2023. This change reflects a broader reassessment of the company’s stock by various financial analysts, indicating a shift in market sentiment.
Bank of America recently increased its target price for GE Aerospace from $310.00 to $365.00, maintaining a “buy” rating. This was notable as it came shortly after the company announced its quarterly earnings. Other analysts, however, have taken a more cautious stance. Zacks Research adjusted its rating from “strong-buy” to “hold” in a report published on September 26, while JPMorgan Chase & Co. raised its price objective from $275.00 to $325.00, also assigning an “overweight” rating.
In contrast, TD Cowen increased its price objective from $300.00 to $330.00, maintaining a “buy” rating. Conversely, BNP Paribas Exane initiated coverage with an “underperform” rating, illustrating the divided opinions among analysts. Currently, fifteen research analysts have rated GE Aerospace with a “buy,” two have assigned a “hold,” and two have given a “sell” rating. The overall consensus rating stands at “Moderate Buy,” with a price target averaging $301.27, according to MarketBeat.com.
Quarterly Earnings Performance
GE Aerospace reported its quarterly earnings on October 21, 2023, announcing earnings per share (EPS) of $1.66. This figure surpassed analysts’ expectations, which estimated an EPS of $1.46, reflecting a positive performance trend. The company achieved a net margin of 18.34% and a return on equity of 34.01%. Revenue for the quarter reached $11.31 billion, significantly exceeding the consensus estimate of $10.29 billion. This represents a year-over-year revenue increase of 26.4%, highlighting the company’s robust growth potential.
For the fiscal year 2025, GE Aerospace has set its guidance at an EPS of 6.000-6.200. Analysts predict an EPS of 5.4 for the current fiscal year, suggesting a solid outlook for the company.
Dividend and Insider Transactions
In addition to its earnings report, GE Aerospace announced a quarterly dividend of $0.36, paid to shareholders on October 27, 2023. This dividend represents an annualized total of $1.44 and a yield of 0.5%. The ex-dividend date was September 29, 2023, and the company’s payout ratio stands at 19.23%.
On November 19, 2023, Senior Vice President Russell Stokes sold 8,000 shares of the company’s stock, with the sale totaling approximately $2.38 million. Following this transaction, Stokes retains ownership of 150,434 shares, valued at around $44.79 million. This sale, which constitutes a 5.05% reduction in ownership, was disclosed in a filing with the Securities and Exchange Commission (SEC).
Institutional Holdings and Market Position
Institutional investors continue to hold a significant stake in GE Aerospace, owning approximately 74.77% of the company’s stock. Recently, several large investors have adjusted their positions. Jacobsen Capital Management increased its holdings by 1.4%, now owning 2,295 shares valued at $690,000. Harfst & Associates Inc. raised its stake by 0.4% to 7,444 shares, valued at $2.24 million.
Other firms, including Ledyard National Bank and Hardy Reed LLC, have also enhanced their investments in the company, reflecting growing confidence among institutional investors.
GE Aerospace, a major player in the aerospace sector, specializes in commercial and military aviation products and services. Its market performance and strategic developments will be closely watched as analysts evaluate future opportunities and risks in the evolving aerospace landscape.
