GE Vernova (NYSE:GEV) Stock Price Down 1.6% on Disappointing Earnings

Key Points

• GE Vernova's stock price fell by 1.6% after the company reported quarterly earnings of $1.64 EPS, which missed analysts' expectations of $1.72 EPS.
• The company announced a quarterly dividend of $0.25 per share, with an annualized rate of $1.00, equating to a dividend yield of 0.2%.
• Analysts have mixed ratings on GE Vernova, with a consensus target price of $601.44 and four analysts rating it as a Strong Buy.

GE Vernova Inc. (NYSE:GEV - Get Free Report)'s stock price was down 1.6% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $532.72 and last traded at $575.73. Approximately 10,296,648 shares changed hands during mid-day trading, an increase of 201% from the average daily volume of 3,424,323 shares. The stock had previously closed at $585.33.

The company reported $1.64 EPS for the quarter, missing analysts' consensus estimates of $1.72 by ($0.08). The company had revenue of $9.97 billion during the quarter, compared to analyst estimates of $9.15 billion. GE Vernova had a return on equity of 13.23% and a net margin of 3.16%.The company's revenue for the quarter was up 11.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.35) earnings per share. GE Vernova has set its FY 2025 guidance at EPS.

GE Vernova Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 17th. Stockholders of record on Monday, October 20th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Monday, October 20th. GE Vernova's dividend payout ratio (DPR) is currently 24.10%.

Analyst Ratings Changes

GEV has been the subject of a number of analyst reports. Guggenheim cut shares of GE Vernova from a "buy" rating to a "neutral" rating in a report on Monday, July 28th. BMO Capital Markets boosted their price target on shares of GE Vernova from $590.00 to $690.00 and gave the company an "outperform" rating in a research report on Thursday, July 24th. Jefferies Financial Group upped their price target on shares of GE Vernova from $658.00 to $668.00 and gave the stock a "hold" rating in a report on Friday, September 12th. Rothschild & Co Redburn reaffirmed a "sell" rating and issued a $475.00 price target on shares of GE Vernova in a report on Wednesday, October 15th. Finally, Rothschild Redb cut shares of GE Vernova from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 15th. Four equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, GE Vernova currently has an average rating of "Moderate Buy" and a consensus target price of $601.44.

Insider Activity at GE Vernova

In other news, CFO Kenneth Scott Parks sold 3,300 shares of the stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $620.00, for a total value of $2,046,000.00. Following the transaction, the chief financial officer owned 7,590 shares of the company's stock, valued at $4,705,800. This represents a 30.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.15% of the stock is owned by insiders.

Institutional Investors Weigh In On GE Vernova

A number of institutional investors have recently made changes to their positions in GEV. IMA Advisory Services Inc. purchased a new stake in shares of GE Vernova in the 1st quarter valued at $27,000. WFA Asset Management Corp bought a new position in GE Vernova in the 2nd quarter worth $29,000. Mowery & Schoenfeld Wealth Management LLC raised its holdings in GE Vernova by 115.2% in the 1st quarter. Mowery & Schoenfeld Wealth Management LLC now owns 99 shares of the company's stock worth $30,000 after purchasing an additional 53 shares in the last quarter. 1248 Management LLC bought a new position in shares of GE Vernova in the 1st quarter worth about $31,000. Finally, Howard Hughes Medical Institute bought a new position in shares of GE Vernova in the 2nd quarter worth about $31,000.

GE Vernova Trading Down 1.6%

The company's 50 day moving average is $613.83 and its 200-day moving average is $524.82. The company has a market capitalization of $156.73 billion, a P/E ratio of 138.73, a price-to-earnings-growth ratio of 4.30 and a beta of 1.72.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions.

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