GE Aerospace (NYSE:GE) Shares Up 2.2% - Here's What Happened

Key Points

• GE Aerospace shares rose 2.2% to about $326.96, supported by robust engine demand, a strong services backlog, LEAP engine strength and new defense and aftermarket initiatives.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $387.22. Recent quarterly results also exceeded expectations, with $2.02 in EPS and $12.63 billion in revenue.
• Investors are weighing growth opportunities against risks, including the proposed $11.75 billion Consolidated Precision Products acquisition, margin pressure, a reduced Jefferies price target and potential delays involving Boeing’s 777-9 testing.

Shares of GE Aerospace (NYSE:GE - Get Free Report) shot up 2.2% on Friday. The stock traded as high as $329.17 and last traded at $326.9550. Approximately 4,236,134 shares changed hands during trading, a decline of 18% from the average daily volume of 5,155,678 shares. The stock had previously closed at $319.78.

Trending Headlines about GE Aerospace

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

• Positive Sentiment: GE’s long-term outlook remains supported by robust engine demand, a large services backlog and continued strength in LEAP engines. Wall Street’s average recommendation remains bullish, although analysts’ targets imply that much of the company’s quality may already be reflected in the share price. Wall Street views on GE
• Positive Sentiment: The company signed an avionics systems service-support agreement with FL Technics Indonesia, reinforcing its recurring aftermarket business. GE and Kratos also achieved first ignition of the GEK800 missile engine, a development that could expand defense-related opportunities. FL Technics agreement GEK800 missile engine ignition
• Positive Sentiment: GE plans to invest $225 million to modernize its research center, potentially strengthening future engine technology and innovation. Research center modernization
• Neutral Sentiment: GE’s proposed $11.75 billion acquisition of Consolidated Precision Products is intended to address precision-casting and supply-chain bottlenecks. It could improve production capacity, but the high purchase price creates integration and return-on-investment risks. CPP acquisition analysis
• Negative Sentiment: Jefferies lowered its price target to $435 from $455 while maintaining a Buy rating, reflecting more limited near-term upside rather than a change to its positive long-term view. Jefferies price-target change
• Negative Sentiment: Rising costs have pressured GE’s operating margin despite higher profit, raising questions about execution. The company’s stronger guidance and LEAP demand partly offset that concern. Investors are also monitoring a reported delay in Boeing 777-9 ETOPS testing involving GE engines. Margin pressure report

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. TD Cowen reiterated a "buy" rating and issued a $380.00 price target (up from $330.00) on shares of GE Aerospace in a report on Monday, July 13th. The Goldman Sachs Group reiterated a "buy" rating and issued a $410.00 target price on shares of GE Aerospace in a report on Monday, July 20th. Susquehanna reissued a "positive" rating and set a $430.00 price target (up from $380.00) on shares of GE Aerospace in a research report on Thursday, July 9th. Wells Fargo & Company restated an "overweight" rating and set a $390.00 price target on shares of GE Aerospace in a research note on Monday, July 20th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $400.00 price objective (up from $355.00) on shares of GE Aerospace in a research note on Wednesday, July 15th. Sixteen investment 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $387.22.

GE Aerospace Trading Up 2.2%

The stock has a market capitalization of $339.24 billion, a PE ratio of 38.51, a PEG ratio of 2.33 and a beta of 1.35. The company has a current ratio of 0.98, a quick ratio of 0.67 and a debt-to-equity ratio of 0.96. The business's 50-day moving average is $344.99 and its two-hundred day moving average is $327.23.

GE Aerospace (NYSE:GE - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The company reported $2.02 EPS for the quarter, topping analysts' consensus estimates of $1.86 by $0.16. GE Aerospace had a return on equity of 40.56% and a net margin of 17.72%.The company had revenue of $12.63 billion for the quarter, compared to analysts' expectations of $11.87 billion. During the same quarter in the previous year, the firm posted $1.66 earnings per share. The firm's quarterly revenue was up 21.1% on a year-over-year basis. GE Aerospace has set its FY 2026 guidance at 7.650-7.850 EPS. On average, analysts predict that GE Aerospace will post 7.91 earnings per share for the current year.

GE Aerospace Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Monday, October 5th will be given a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, October 5th. GE Aerospace's dividend payout ratio is presently 22.14%.

Insider Activity

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

Institutional Investors Weigh In On GE Aerospace

Hedge funds and other institutional investors have recently bought and sold shares of the business. QRG Capital Management Inc. raised its position in shares of GE Aerospace by 9.8% in the 2nd quarter. QRG Capital Management Inc. now owns 214,416 shares of the company's stock valued at $80,134,000 after purchasing an additional 19,155 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its stake in GE Aerospace by 35.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 18,478 shares of the company's stock valued at $6,906,000 after acquiring an additional 4,861 shares during the last quarter. Envestnet Asset Management Inc. grew its holdings in GE Aerospace by 3.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 1,507,740 shares of the company's stock worth $563,485,000 after acquiring an additional 54,448 shares in the last quarter. State Street Corp increased its holdings in GE Aerospace by 2.6% in the second quarter. State Street Corp now owns 46,497,628 shares of the company's stock valued at $17,377,559,000 after buying an additional 1,160,584 shares during the last quarter. Finally, Security National Bank of SO Dak bought a new position in GE Aerospace during the second quarter worth $55,000. 74.77% of the stock is currently owned by hedge funds and other institutional investors.

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 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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