GE Aerospace (NYSE:GE) Stock Jumps 1.3% - Still a Buy?

Key Points

• GE Aerospace shares rose 1.3% to about $342.28, while trading volume was 34% below its average.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $373.45; 16 analysts rate the stock Buy, three Hold, and one Sell. Some firms recently lowered their targets.
• The company beat quarterly expectations, reporting EPS of $2.25 versus $2.01 expected and revenue of $13.29 billion versus $12.88 billion; revenue grew 24.7% year over year.

Shares of GE Aerospace (NYSE:GE - Get Free Report) shot up 1.3% on Wednesday. The stock traded as high as $342.90 and last traded at $342.2770. 3,368,195 shares changed hands during trading, a decline of 34% from the average daily volume of 5,134,626 shares. The stock had previously closed at $337.91.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on GE shares. Jefferies Financial Group reissued a "buy" rating and issued a $425.00 target price on shares of GE Aerospace in a research note on Sunday, October 25th. Morgan Stanley reaffirmed an "overweight" rating and set a $375.00 price target (down from $400.00) on shares of GE Aerospace in a research report on Wednesday, October 21st. Guggenheim set a $380.00 price objective on GE Aerospace in a research report on Wednesday, October 21st. Weiss Ratings reissued a "buy (b)" rating on shares of GE Aerospace in a research note on Thursday, October 15th. Finally, JPMorgan Chase & Co. dropped their target price on shares of GE Aerospace from $400.00 to $375.00 and set an "overweight" rating on the stock in a report on Wednesday, October 21st. Sixteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $373.45.

GE Aerospace Trading Up 1.3%

The stock has a market cap of $353.69 billion, a price-to-earnings ratio of 39.48, a P/E/G ratio of 2.28 and a beta of 1.43. The business has a 50-day simple moving average of $314.60 and a two-hundred day simple moving average of $323.43. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.68 and a current ratio of 0.98.

GE Aerospace (NYSE:GE - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The company reported $2.25 earnings per share 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 analysts' expectations of $12.88 billion. GE Aerospace had a return on equity of 44.43% and a net margin of 17.31%. GE Aerospace's revenue for the quarter was up 24.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.66 EPS. As a group, research analysts forecast that GE Aerospace will post 8.16 EPS for the current 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 paid a dividend of $0.47 per share. The ex-dividend date was Monday, October 5th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.5%. GE Aerospace's dividend payout ratio is currently 21.68%.

Insider Activity at GE Aerospace

In related news, VP Robert Giglietti sold 14,796 shares of the firm's stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $332.54, for a total value of $4,920,261.84. Following the completion of the transaction, the vice president directly owned 20,201 shares of the company's stock, valued at approximately $6,717,640.54. This trade represents a 42.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of GE. State Street Corp raised its stake 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 period. Fisher Asset Management LLC increased its holdings in shares of GE Aerospace by 4.9% during the 3rd quarter. Fisher Asset Management LLC now owns 12,156,680 shares of the company's stock worth $3,796,410,000 after acquiring an additional 568,633 shares during the last quarter. Jennison Associates LLC increased its holdings in shares of GE Aerospace by 37.7% during the 1st quarter. Jennison Associates LLC now owns 11,026,006 shares of the company's stock worth $3,128,850,000 after acquiring an additional 3,017,937 shares during the last quarter. Bank of America Corp DE raised its stake in GE Aerospace by 10.0% in the 1st quarter. Bank of America Corp DE now owns 7,664,679 shares of the company's stock valued at $2,175,006,000 after acquiring an additional 695,731 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in GE Aerospace by 6.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,251,603 shares of the company's stock valued at $2,710,142,000 after acquiring an additional 427,820 shares during the period. 74.77% of the stock is currently owned by institutional investors and hedge funds.

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.

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