GE Aerospace (NYSE:GE) Shares Up 2.8% - Here's What Happened

Key Points

• GE Aerospace shares rose 2.8% in Friday midday trading, reaching $323.54, with trading volume slightly above its average.
• The company beat quarterly estimates, reporting EPS of $2.25 versus $2.01 expected and revenue of $13.29 billion, up 24.7% year over year. Its roughly $170 billion services backlog and defense work support its longer-term outlook.
• Analysts rate the stock a consensus “Moderate Buy,” with an average price target of $373.45, though its premium valuation may leave it vulnerable to disappointments. A vice president also sold 14,796 shares, reducing his stake by about 42%.

GE Aerospace (NYSE:GE - Get Free Report)'s share price traded up 2.8% during mid-day trading on Friday. The stock traded as high as $325.18 and last traded at $323.5360. 5,295,665 shares traded hands during trading, an increase of 3% from the average daily volume of 5,147,199 shares. The stock had previously closed at $314.73.

Trending Headlines about GE Aerospace

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

• Positive Sentiment: GE’s roughly $170 billion services backlog, defense contracts and analyst consensus of “Moderate Buy” underpin the longer-term outlook. The report also noted a sharp rise in call-option volume, suggesting increased bullish positioning, though options activity is not a guarantee of future gains. GE Aerospace backlog and valuation
• Positive Sentiment: GE Aerospace and BETA Technologies reported a hybrid-electric-assisted takeoff milestone using a commercial aircraft testbed. The work may support GE’s longer-term technology opportunities, although it is not an immediate earnings driver. GE and BETA hybrid-electric takeoff
• Positive Sentiment: GE is part of a team working on KC-135 modernization, adding potential defense-related business and future support work. KC-135 modernization team
• Neutral Sentiment: Boeing delivery delays may keep older aircraft flying longer, sustaining demand for engine maintenance and parts—helpful to GE’s services business, but potentially offset by disruption or uncertainty in new-aircraft production. Boeing delays and maintenance demand
• Negative Sentiment: Vice President Robert Giglietti sold 14,796 shares, reducing his stake by about 42%. The sale may weigh on sentiment, though insider transactions can have varied reasons. GE Aerospace insider sale
• Negative Sentiment: ETFs were net sellers of GE shares on Nov. 4, and the article notes the stock’s premium valuation, which could make it vulnerable if growth or execution disappoints. ETF selling of GE shares

Wall Street Analyst Weigh In

GE has been the subject of a number of research analyst reports. Sanford C. Bernstein set a $376.00 price objective on shares of GE Aerospace in a research report on Friday, October 23rd. TD Cowen reaffirmed a "buy" rating and set a $380.00 target price (up from $330.00) on shares of GE Aerospace in a research note on Monday, July 13th. The Goldman Sachs Group reiterated a "buy" rating and set a $410.00 price target on shares of GE Aerospace in a report on Monday, July 20th. JPMorgan Chase & Co. dropped their price target on GE Aerospace from $400.00 to $375.00 and set an "overweight" rating for the company in a research note on Wednesday, October 21st. Finally, Susquehanna cut their price objective on GE Aerospace from $430.00 to $400.00 and set a "positive" rating on the stock in a report on Wednesday, October 21st. Sixteen 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. Based on data from MarketBeat.com, GE Aerospace currently has an average rating of "Moderate Buy" and a consensus price target of $373.45.

GE Aerospace Trading Up 2.8%

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 company has a market cap of $334.33 billion, a price-to-earnings ratio of 37.32, a price-to-earnings-growth ratio of 2.24 and a beta of 1.43. The business's fifty day moving average price is $315.07 and its 200 day moving average price is $323.07.

GE Aerospace (NYSE:GE - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The company reported $2.25 earnings per share for the quarter, beating analysts' consensus estimates of $2.01 by $0.24. The business 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%. GE Aerospace's quarterly revenue was up 24.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.66 earnings per share. Research analysts anticipate that GE Aerospace will post 8.16 earnings per share for the current fiscal year.

GE Aerospace Dividend Announcement

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

Insider Activity at GE Aerospace

In related news, VP Robert Giglietti sold 14,796 shares of GE Aerospace stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $332.54, for a total value of $4,920,261.84. Following the transaction, the vice president directly owned 20,201 shares of the company's stock, valued at $6,717,640.54. The trade was a 42.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. GK Wealth Management LLC purchased a new stake in shares of GE Aerospace in the third quarter worth $25,000. Paladin Partners LLC purchased a new position in GE Aerospace during the second quarter worth about $38,000. Parvin Asset Management LLC purchased a new position in GE Aerospace during the second quarter worth about $41,000. Clark Wealth Partners grew its position in GE Aerospace by 70.1% during 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 GE Aerospace in the 2nd quarter worth about $46,000. Institutional investors own 74.77% of the company's stock.

About GE Aerospace

GE Aerospace NYSE: GE designs, manufactures and services engines and related systems for commercial and military aircraft. Its offerings include aircraft engines, components, avionics and other integrated systems, along with maintenance, repair and overhaul services and digital solutions that support aircraft operations.

The company serves airlines, aircraft manufacturers, governments and defense organizations around the world. Its business combines original equipment production with long-term aftermarket support, including parts and technical services for engines already in operation.

GE Aerospace traces its roots to General Electric's aviation business, which developed over more than a century.

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