GE HealthCare Technologies (NASDAQ:GEHC) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• GE HealthCare reported stronger-than-expected quarterly results, with earnings per share of $1.34 versus the $1.20 analyst consensus and revenue of $5.51 billion versus estimates of $5.35 billion. Revenue increased 7.2% year over year, prompting shares to gap up from $71.11 to about $76.
• The company raised its quarterly dividend to $0.04 per share from $0.035, representing a $0.16 annualized dividend and a 0.2% yield.
• Analyst sentiment remains positive but mixed, with an overall “Moderate Buy” rating and an average price target of $78.35; institutional investors own approximately 82.1% of the company.

GE HealthCare Technologies Inc. (NASDAQ:GEHC - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $71.11, but opened at $76.00. GE HealthCare Technologies shares last traded at $75.9890, with a volume of 1,314,081 shares.

The company reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.14. The firm had revenue of $5.51 billion during the quarter, compared to analyst estimates of $5.35 billion. During the same period in the prior year, the company earned $1.07 earnings per share. The business's quarterly revenue was up 7.2% compared to the same quarter last year.

GE HealthCare Technologies Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 23rd will be given a dividend of $0.04 per share. The ex-dividend date is Friday, October 23rd. This represents a $0.16 annualized dividend and a dividend yield of 0.2%. This is a positive change from GE HealthCare Technologies's previous quarterly dividend of $0.0350. GE HealthCare Technologies's dividend payout ratio (DPR) is 3.67%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on GEHC. Zacks Research raised shares of GE HealthCare Technologies from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. BTIG Research decreased their target price on shares of GE HealthCare Technologies from $79.00 to $75.00 and set a "buy" rating on the stock in a research note on Monday, October 12th. Wells Fargo & Company upped their price target on shares of GE HealthCare Technologies from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. Oppenheimer reiterated an "outperform" rating on shares of GE HealthCare Technologies in a research note on Thursday, July 30th. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of GE HealthCare Technologies in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $78.35.

Institutional Investors Weigh In On GE HealthCare Technologies

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp boosted its position in shares of GE HealthCare Technologies by 1.6% during the 2nd quarter. State Street Corp now owns 20,861,566 shares of the company's stock worth $1,335,349,000 after purchasing an additional 323,090 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its stake in GE HealthCare Technologies by 13.2% during the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 13,455,814 shares of the company's stock worth $861,307,000 after buying an additional 1,571,226 shares during the period. Dimensional Fund Advisors LP raised its stake in GE HealthCare Technologies by 2.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,399,439 shares of the company's stock worth $384,219,000 after buying an additional 105,995 shares during the period. Van ECK Associates Corp boosted its holdings in GE HealthCare Technologies by 4.1% in the second quarter. Van ECK Associates Corp now owns 4,482,631 shares of the company's stock worth $286,933,000 after acquiring an additional 177,028 shares in the last quarter. Finally, Mizuho Markets Cayman LP boosted its holdings in GE HealthCare Technologies by 173.2% in the first quarter. Mizuho Markets Cayman LP now owns 3,068,500 shares of the company's stock worth $218,416,000 after acquiring an additional 1,945,500 shares in the last quarter. Institutional investors own 82.06% of the company's stock.

GE HealthCare Technologies Price Performance

The firm has a fifty day simple moving average of $68.30 and a 200-day simple moving average of $70.23. The firm has a market cap of $34.57 billion, a P/E ratio of 17.58 and a beta of 0.73.

About GE HealthCare Technologies

GE HealthCare Technologies Inc is a global medical technology company that develops and provides products, services and digital solutions for healthcare providers. Its offerings are designed to support the diagnosis, treatment and monitoring of patients across hospitals, outpatient facilities, imaging centers and other care settings.

The company's portfolio includes medical imaging systems such as computed tomography, magnetic resonance imaging, molecular imaging, surgical imaging and X-ray equipment.

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