GE Vernova (NYSE:GEV) Shares Down 5.8% - Here's What Happened

Key Points

• GE Vernova shares fell 5.8% on Wednesday, trading as low as $856.01 after closing at $920.15 the previous session. Trading volume surged to 5.29 million shares, well above the average.
• Despite the stock drop, Wall Street remains broadly bullish: analysts have recently raised price targets, and the stock carries an average rating of “Moderate Buy” with an average target price of $1,090.76.
• The company reported strong first-quarter results, with EPS of $17.44 beating estimates and revenue rising 17% year over year to $9.34 billion. GE Vernova also announced a quarterly dividend of $0.50 per share, payable July 14.

Shares of GE Vernova Inc. (NYSE:GEV - Get Free Report) traded down 5.8% during trading on Wednesday . The company traded as low as $856.01 and last traded at $866.6310. 5,290,888 shares traded hands during mid-day trading, an increase of 94% from the average session volume of 2,728,911 shares. The stock had previously closed at $920.15.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Royal Bank Of Canada upped their price target on GE Vernova from $996.00 to $1,195.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. TD Cowen upped their price target on GE Vernova from $780.00 to $1,220.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Argus set a $1,300.00 price target on GE Vernova in a research note on Monday, April 27th. Robert W. Baird increased their target price on GE Vernova from $1,008.00 to $1,400.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Finally, BNP Paribas Exane cut GE Vernova from an "outperform" rating to a "neutral" rating and set a $1,190.00 target price for the company. in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, GE Vernova currently has an average rating of "Moderate Buy" and an average target price of $1,090.76.

GE Vernova Trading Down 5.8%

The business has a 50 day moving average of $1,006.31 and a 200-day moving average of $826.35. The company has a current ratio of 0.89, a quick ratio of 0.65 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $232.88 billion, a P/E ratio of 25.24, a PEG ratio of 3.46 and a beta of 1.23.

GE Vernova (NYSE:GEV - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The company reported $17.44 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $15.49. GE Vernova had a return on equity of 43.97% and a net margin of 23.81%.The firm had revenue of $9.34 billion during the quarter, compared to the consensus estimate of $9.19 billion. During the same quarter in the prior year, the firm posted $0.91 EPS. The business's revenue was up 17.0% on a year-over-year basis. Analysts anticipate that GE Vernova Inc. will post 14.99 EPS for the current fiscal year.

GE Vernova Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 16th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $2.00 dividend on an annualized basis and a yield of 0.2%. GE Vernova's dividend payout ratio is 5.83%.

Insider Buying and Selling

In other GE Vernova news, CEO Victor Abate sold 4,819 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $948.08, for a total transaction of $4,568,797.52. Following the completion of the transaction, the chief executive officer owned 1,835 shares of the company's stock, valued at $1,739,726.80. This represents a 72.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Matthew Joseph Potvin sold 2,333 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $1,059.09, for a total value of $2,470,856.97. Following the transaction, the chief accounting officer directly owned 3,549 shares of the company's stock, valued at approximately $3,758,710.41. This trade represents a 39.66% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On GE Vernova

Large investors have recently bought and sold shares of the company. Onyx Bridge Wealth Group LLC boosted its holdings in shares of GE Vernova by 1.3% in the 1st quarter. Onyx Bridge Wealth Group LLC now owns 727 shares of the company's stock valued at $635,000 after buying an additional 9 shares during the last quarter. Red Door Wealth Management LLC boosted its holdings in shares of GE Vernova by 0.6% in the 1st quarter. Red Door Wealth Management LLC now owns 1,774 shares of the company's stock valued at $1,548,000 after buying an additional 10 shares during the last quarter. Advance Capital Management Inc. boosted its holdings in shares of GE Vernova by 2.2% in the 1st quarter. Advance Capital Management Inc. now owns 461 shares of the company's stock valued at $402,000 after buying an additional 10 shares during the last quarter. Alpha Financial Partners LLC boosted its holdings in shares of GE Vernova by 2.0% in the 1st quarter. Alpha Financial Partners LLC now owns 514 shares of the company's stock valued at $449,000 after buying an additional 10 shares during the last quarter. Finally, Bell Investment Advisors Inc boosted its holdings in shares of GE Vernova by 5.2% in the 1st quarter. Bell Investment Advisors Inc now owns 221 shares of the company's stock valued at $193,000 after buying an additional 11 shares during the last quarter.

GE Vernova Company Profile

GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.

The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.

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