GE Aerospace (NYSE:GE) Shares Down 4.6% After Insider Selling

Key Points

• GE Aerospace shares fell 4.6% to about $314.25 in Thursday mid-day trading, with volume 27% above average, after VP Robert Giglietti sold 14,796 shares for about $4.92 million.
• Analysts remain broadly positive: 16 rate the stock Buy, three Hold and one Sell, giving it a “Moderate Buy” consensus and an average price target of $373.45.
• Recent results beat expectations, with quarterly EPS of $2.25 versus $2.01 estimated and revenue up 24.7% year over year. A large services backlog supports demand, though updated inspections for certain GEnx engines add cost and execution concerns.

GE Aerospace (NYSE:GE - Get Free Report) shares traded down 4.6% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $312.30 and last traded at $314.2540. 6,539,948 shares changed hands during mid-day trading, an increase of 27% from the average daily volume of 5,145,173 shares. The stock had previously closed at $329.45.

Specifically, VP Robert Giglietti sold 14,796 shares of the firm's stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $332.54, for a total transaction of $4,920,261.84. Following the sale, the vice president owned 20,201 shares of the company's stock, valued at $6,717,640.54. This trade represents a 42.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analyst Ratings Changes

A number of brokerages recently weighed in on GE. HC Wainwright set a $375.00 target price on shares of GE Aerospace in a research note on Wednesday, October 21st. Royal Bank Of Canada set a $376.00 target price on GE Aerospace in a research note on Friday, October 23rd. Jefferies Financial Group reaffirmed a "buy" rating and set a $425.00 price target on shares of GE Aerospace in a research report on Sunday, October 25th. Guggenheim set a $380.00 price target on GE Aerospace in a research report on Wednesday, October 21st. Finally, JPMorgan Chase & Co. decreased their price target on shares of GE Aerospace from $400.00 to $375.00 and set an "overweight" rating for the company 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 assigned a Sell rating to the company's stock. According to MarketBeat, GE Aerospace currently has a consensus rating of "Moderate Buy" and an average price target of $373.45.

Key Headlines Impacting GE Aerospace

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

• Positive Sentiment: Prolonged aircraft-delivery delays are keeping older planes in service longer, supporting demand for GE’s higher-margin maintenance and parts business. One report highlighted a roughly $170 billion commercial-services backlog. GE Aerospace stock faces Boeing delays as maintenance demand rises
• Positive Sentiment: GE will supply eight gas-turbine engines for two U.S. Navy destroyers, adding defense-related business and potential follow-on service work. GE Aerospace to Supply Engines for Two US Navy Flight III Destroyers
• Neutral Sentiment: CEO Larry Culp said midterm election results are not expected to have much impact on GE Aerospace’s business, offering little immediate change to the investment outlook. GE Aerospace CEO on midterm results
• Negative Sentiment: GE updated inspection guidance for certain GEnx engines after a study flagged early turbine-blade cracks. More inspections may add costs and operational uncertainty for airlines, contributing to concerns reflected in the stock’s decline. GE Updates Engine Checks After Study Flags Early Blade Cracks
• Negative Sentiment: ETFs were net sellers of GE shares, while the stock’s premium valuation may leave it sensitive to concerns about delivery timing and execution. ETFs Are Net Sellers of General Electric

GE Aerospace Price Performance

The stock has a market cap of $324.73 billion, a price-to-earnings ratio of 36.25, a price-to-earnings-growth ratio of 2.18 and a beta of 1.43. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.68 and a current ratio of 0.98. The company has a 50-day simple moving average of $315.88 and a two-hundred day simple moving average of $323.12.

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

GE Aerospace Dividend Announcement

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

Institutional Investors Weigh In On GE Aerospace

Several hedge funds have recently bought and sold shares of the company. GK Wealth Management LLC bought a new stake in shares of GE Aerospace during the third quarter valued at approximately $25,000. Paladin Partners LLC purchased a new position in shares of GE Aerospace in the second quarter worth $38,000. Parvin Asset Management LLC purchased a new position in shares of GE Aerospace in the second quarter worth $41,000. Clark Wealth Partners lifted its holdings in shares of GE Aerospace by 70.1% in the third quarter. Clark Wealth Partners now owns 114 shares of the company's stock worth $36,000 after buying an additional 47 shares in the last quarter. Finally, Markowski Investments bought a new position in shares of GE Aerospace during the second quarter worth $46,000. 74.77% of the stock is currently owned by institutional investors and hedge funds.

GE Aerospace Company Profile

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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