GE Aerospace (NYSE:GE) Shares Down 2% - Here's Why

Key Points

• GE Aerospace shares fell 2% to about $317.34 in mid-day trading, below both its 50-day moving average of $352.74 and its 200-day average of $328.62.
• Despite the decline, analysts remain broadly positive: 16 analysts rate the stock a Buy, with an average rating of “Moderate Buy” and an average price target of $388.33.
• The company reported strong quarterly results, with EPS of $2.02 and revenue of $12.63 billion, exceeding estimates and marking 21.1% year-over-year revenue growth. GE also declared a $0.47 quarterly dividend, equivalent to a 0.6% yield.

GE Aerospace (NYSE:GE - Get Free Report)'s share price dropped 2% during mid-day trading on Monday . The company traded as low as $312.08 and last traded at $317.3440. Approximately 5,107,277 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 5,155,919 shares. The stock had previously closed at $323.66.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on GE. Royal Bank Of Canada restated an "outperform" rating and set a $400.00 price objective (up from $355.00) on shares of GE Aerospace in a research note on Wednesday, July 15th. Weiss Ratings upgraded shares of GE Aerospace from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, July 17th. Sanford C. Bernstein reiterated an "outperform" rating on shares of GE Aerospace in a report on Wednesday, September 9th. The Goldman Sachs Group reissued a "buy" rating and set a $410.00 price target on shares of GE Aerospace in a research report on Monday, July 20th. Finally, Melius Research set a $350.00 price objective on GE Aerospace and gave the company a "hold" rating in a research report on Monday. Sixteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, GE Aerospace currently has an average rating of "Moderate Buy" and an average target price of $388.33.

GE Aerospace Trading Down 2.0%

The stock has a 50-day simple moving average of $352.74 and a two-hundred day simple moving average of $328.62. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.67 and a current ratio of 0.98. The firm has a market cap of $329.26 billion, a PE ratio of 37.38, a price-to-earnings-growth ratio of 2.36 and a beta of 1.35.

GE Aerospace (NYSE:GE - Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The company reported $2.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.86 by $0.16. GE Aerospace had a net margin of 17.72% and a return on equity of 40.56%. The firm had revenue of $12.63 billion for the quarter, compared to the consensus estimate of $11.87 billion. During the same quarter last year, the firm posted $1.66 EPS. The business's quarterly revenue was up 21.1% compared to the same quarter last year. GE Aerospace has set its FY 2026 guidance at 7.650-7.850 EPS. As a group, sell-side analysts anticipate that GE Aerospace will post 7.91 EPS for the current year.

GE Aerospace Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, July 27th. Investors of record on Monday, July 6th were issued a $0.47 dividend. The ex-dividend date was Monday, July 6th. This represents a $1.88 annualized dividend and a yield of 0.6%. GE Aerospace's dividend payout ratio (DPR) is currently 22.14%.

Insider Buying and Selling

In other GE Aerospace news, SVP Mohamed Ali sold 8,096 shares of the business's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $353.71, for a total transaction of $2,863,636.16. Following the completion of the sale, the senior vice president directly owned 20,666 shares in the company, valued at approximately $7,309,770.86. The trade was a 28.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.19% of the company's stock.

Institutional Trading of GE Aerospace

Large investors have recently modified their holdings of the company. Susquehanna Fundamental Investments LLC raised its stake in shares of GE Aerospace by 261.0% during the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 213,603 shares of the company's stock valued at $79,830,000 after buying an additional 154,429 shares during the last quarter. CenterBook Partners LP boosted its stake in shares of GE Aerospace by 892.6% in the fourth quarter. CenterBook Partners LP now owns 49,788 shares of the company's stock worth $15,336,000 after buying an additional 44,772 shares during the last quarter. Clough Capital Partners L P grew its holdings in GE Aerospace by 37.1% during the first quarter. Clough Capital Partners L P now owns 70,535 shares of the company's stock worth $20,016,000 after acquiring an additional 19,105 shares during the period. Ascentis Independent Advisors grew its holdings in GE Aerospace by 207.3% during the first quarter. Ascentis Independent Advisors now owns 4,317 shares of the company's stock worth $1,225,000 after acquiring an additional 2,912 shares during the period. Finally, Sumitomo Mitsui Financial Group Inc. raised its position in GE Aerospace by 13.7% during the fourth quarter. Sumitomo Mitsui Financial Group Inc. now owns 110,050 shares of the company's stock valued at $33,900,000 after acquiring an additional 13,277 shares in the last quarter. Institutional investors own 74.77% of the company's stock.

About GE Aerospace

GE Aerospace NYSE: GE is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its portfolio serves commercial aviation, military and defense, business and general aviation, and other aerospace markets.

The company's products and services include commercial and military aircraft engines, integrated engine systems, avionics, mechanical systems and digital solutions. GE Aerospace also provides maintenance, repair, overhaul, spare parts, technical support and other lifecycle services for aircraft propulsion and related equipment.

GE Aerospace traces its roots to the aviation activities of General Electric, which began developing aircraft engines during World War I.

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