GE HealthCare Technologies (NASDAQ:GEHC) Shares Gap Up - Here's Why

GE HealthCare Technologies Inc. (NASDAQ:GEHC - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $69.87, but opened at $76.95. GE HealthCare Technologies shares last traded at $75.24, with a volume of 1,492,677 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. BTIG Research set a $95.00 price target on GE HealthCare Technologies and gave the stock a "buy" rating in a research note on Monday, April 14th. Morgan Stanley decreased their price target on GE HealthCare Technologies from $86.00 to $78.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 6th. Evercore ISI decreased their price target on GE HealthCare Technologies from $96.00 to $85.00 and set an "outperform" rating for the company in a research note on Thursday, May 1st. UBS Group raised GE HealthCare Technologies from a "sell" rating to a "neutral" rating and decreased their price target for the stock from $74.00 to $73.00 in a research note on Monday, May 5th. Finally, Piper Sandler decreased their price target on GE HealthCare Technologies from $104.00 to $88.00 and set an "overweight" rating for the company in a research note on Wednesday, April 23rd. Three equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $88.27.

GE HealthCare Technologies Price Performance

The company has a 50 day moving average of $71.27 and a two-hundred day moving average of $80.21. The firm has a market cap of $33.49 billion, a P/E ratio of 16.89, a PEG ratio of 3.19 and a beta of 1.21. The company has a quick ratio of 0.83, a current ratio of 1.04 and a debt-to-equity ratio of 0.88.

GE HealthCare Technologies (NASDAQ:GEHC - Get Free Report) last announced its earnings results on Wednesday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.10. GE HealthCare Technologies had a return on equity of 25.74% and a net margin of 10.13%. The business had revenue of $4.78 billion during the quarter, compared to analysts' expectations of $4.66 billion. During the same quarter last year, the business posted $0.90 earnings per share. The company's quarterly revenue was up 2.7% on a year-over-year basis. Sell-side analysts expect that GE HealthCare Technologies Inc. will post 4.68 EPS for the current year.

GE HealthCare Technologies Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, May 15th. Stockholders of record on Friday, April 25th were issued a dividend of $0.035 per share. This represents a $0.14 annualized dividend and a dividend yield of 0.19%. The ex-dividend date was Friday, April 25th. GE HealthCare Technologies's dividend payout ratio is 2.95%.

GE HealthCare Technologies announced that its Board of Directors has approved a stock repurchase plan on Wednesday, April 30th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 3.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On GE HealthCare Technologies

Several hedge funds have recently modified their holdings of the stock. Capital Research Global Investors lifted its holdings in shares of GE HealthCare Technologies by 4.5% during the fourth quarter. Capital Research Global Investors now owns 60,832,004 shares of the company's stock valued at $4,755,851,000 after purchasing an additional 2,608,066 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of GE HealthCare Technologies by 4.3% during the fourth quarter. Vanguard Group Inc. now owns 52,537,446 shares of the company's stock valued at $4,107,378,000 after purchasing an additional 2,155,429 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of GE HealthCare Technologies by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 11,320,576 shares of the company's stock valued at $882,777,000 after purchasing an additional 342,819 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of GE HealthCare Technologies by 18.4% during the fourth quarter. Invesco Ltd. now owns 8,067,927 shares of the company's stock valued at $630,751,000 after purchasing an additional 1,252,613 shares during the last quarter. Finally, Norges Bank purchased a new stake in GE HealthCare Technologies in the 4th quarter worth about $488,531,000. 82.06% of the stock is owned by hedge funds and other institutional investors.

About GE HealthCare Technologies

GE HealthCare Technologies Inc engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.