GE Aerospace (NYSE:GE) Shares Climb 1.4% - Still a Buy?

Key Points

• GE shares rose 1.4% to about $320.27 in Tuesday trading, on volume roughly 7% below the average session volume.
• Commercial engine demand is supported by major CFM LEAP orders from IndiGo and Turkish Airlines, while GE also won LM2500 turbine orders for U.S. Navy destroyers. Boeing delivery delays could have mixed effects, supporting older-engine maintenance while potentially postponing new-engine deliveries.
• Recent results beat expectations: quarterly EPS was $2.25 versus a $2.01 consensus, and revenue increased 24.7% year over year. Analysts’ consensus is “Moderate Buy,” with a $373.45 price target; Jefferies reiterated Buy with a $425 target.

GE Aerospace (NYSE:GE - Get Free Report)'s stock price rose 1.4% during trading on Tuesday. The stock traded as high as $323.00 and last traded at $320.2710. 4,781,705 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 5,131,612 shares. The stock had previously closed at $315.78.

Key Headlines Impacting GE Aerospace

Here are the key news stories impacting GE Aerospace this week:

• Positive Sentiment: GE and Safran’s CFM International joint venture reported strong LEAP demand, including agreements for more than 1,000 LEAP-1A engines for IndiGo and more than 300 LEAP-1B engines for Turkish Airlines. Continued airline fleet renewal and air-traffic growth could support GE’s commercial engine and services revenue. GE's Commercial Engines Segment Gains Momentum: Can It Sustain?
• Positive Sentiment: GE secured orders for LM2500 marine gas turbines to power next-generation Arleigh Burke Flight III destroyers, adding military-program demand alongside its commercial engine business. GE Aerospace secures LM2500 orders for destroyers
• Positive Sentiment: A Jefferies analysis sees about 41% potential upside, despite GE’s October decline. The article also cites the company’s earnings beat and higher 2026 guidance as supportive factors for the investment case. Jefferies still sees 41% upside
• Neutral Sentiment: Boeing’s aircraft delivery delays could support demand for maintenance on older engines, but may also delay GE’s new-engine deliveries. The net effect on GE depends on which impact proves stronger. Jefferies still sees 41% upside

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GE. Jefferies Financial Group reissued a "buy" rating and set a $425.00 price target on shares of GE Aerospace in a research report on Sunday, October 25th. Wells Fargo & Company lowered their price objective on shares of GE Aerospace from $390.00 to $380.00 and set an "overweight" rating for the company in a research report on Wednesday, September 30th. Melius Research set a $350.00 price objective on GE Aerospace and gave the stock a "hold" rating in a research note on Monday, September 14th. Sanford C. Bernstein set a $376.00 target price on GE Aerospace in a report on Friday, October 23rd. Finally, Morgan Stanley reissued an "overweight" rating and issued a $375.00 target price (down from $400.00) on shares of GE Aerospace in a research note on Wednesday, October 21st. Sixteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $373.45.

GE Aerospace Stock Performance

The stock has a market cap of $330.95 billion, a P/E ratio of 36.94, a price-to-earnings-growth ratio of 2.05 and a beta of 1.38. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.98 and a quick ratio of 0.68. The stock's 50 day simple moving average is $316.70 and its two-hundred day simple moving average is $323.07.

GE Aerospace (NYSE:GE - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The company reported $2.25 EPS for the quarter, topping analysts' consensus estimates of $2.01 by $0.24. The business had revenue of $13.29 billion for the quarter, compared to analyst estimates of $12.88 billion. GE Aerospace had a net margin of 17.31% and a return on equity of 44.43%. The firm's quarterly revenue was up 24.7% on a year-over-year basis. During the same period last year, the business posted $1.66 earnings per share. As a group, research analysts forecast that GE Aerospace will post 8.16 EPS for the current year.

GE Aerospace Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, October 26th. Shareholders of record on Monday, October 5th were paid a $0.47 dividend. The ex-dividend date of this dividend was Monday, October 5th. This represents a $1.88 annualized dividend and a dividend yield of 0.6%. GE Aerospace's dividend payout ratio (DPR) is currently 21.68%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Burkett Financial Services LLC grew its holdings in shares of GE Aerospace by 28.9% during the second quarter. Burkett Financial Services LLC now owns 125 shares of the company's stock valued at $47,000 after buying an additional 28 shares during the last quarter. BOK Financial Private Wealth Inc. raised its holdings in shares of GE Aerospace by 3.2% in the 2nd quarter. BOK Financial Private Wealth Inc. now owns 960 shares of the company's stock worth $359,000 after acquiring an additional 30 shares during the last quarter. Gradient Investments LLC raised its holdings in shares of GE Aerospace by 4.4% in the 2nd quarter. Gradient Investments LLC now owns 765 shares of the company's stock worth $286,000 after acquiring an additional 32 shares during the last quarter. Kinloch Capital LLC raised its holdings in shares of GE Aerospace by 3.1% in the 2nd quarter. Kinloch Capital LLC now owns 1,079 shares of the company's stock worth $403,000 after acquiring an additional 32 shares during the last quarter. Finally, United Community Bank lifted its position in GE Aerospace by 10.1% in the 2nd quarter. United Community Bank now owns 361 shares of the company's stock valued at $135,000 after acquiring an additional 33 shares in the last quarter. 74.77% of the stock is owned by institutional investors and hedge funds.

About GE Aerospace

GE Aerospace NYSE: GE is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.

GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.

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