GE Vernova (NYSE:GEV) Shares Gap Down on Analyst Downgrade

Key Points

• GE Vernova shares fell sharply after the market opened, dropping from a prior close of $918.20 to an opening price of $855.25, following Argus’s price-target cut.
• Argus lowered its target from $1,300 to $1,100 but maintained a Buy rating. Analysts overall remain positive, with a “Moderate Buy” consensus and an average target of $1,144.20.
• The company beat quarterly earnings and revenue estimates: EPS was $4.81 versus $4.03 expected, while revenue rose 26.8% year over year to $12.64 billion.

GE Vernova Inc. (NYSE:GEV - Get Free Report)'s share price gapped down before the market opened on Wednesday after Argus lowered their price target on the stock from $1,300.00 to $1,100.00. The stock had previously closed at $918.20, but opened at $855.25. Argus currently has a buy rating on the stock. GE Vernova shares last traded at $843.5740, with a volume of 1,319,409 shares changing hands.

Other equities analysts also recently issued research reports about the stock. Evercore reissued an "outperform" rating and issued a $1,350.00 price objective on shares of GE Vernova in a research note on Thursday, October 1st. Mizuho boosted their target price on shares of GE Vernova from $913.00 to $949.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. The Goldman Sachs Group upgraded shares of GE Vernova from a "buy" rating to a "market outperform" rating in a report on Monday, September 14th. Glj Research increased their price target on GE Vernova from $470.00 to $540.00 and gave the company a "sell" rating in a research note on Friday, October 30th. Finally, Susquehanna dropped their price target on GE Vernova from $1,270.00 to $1,250.00 and set a "positive" rating for the company in a research note on Thursday, October 29th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,144.20.

GE Vernova News Summary

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

• Positive Sentiment: Bernstein reaffirmed its Buy rating, arguing that election-related fears about data-center projects are overblown. The view helped lift GE Vernova along with other power-infrastructure stocks. Article: GE Vernova Rallies as Bernstein Calls Data Center Fears Overblown
• Positive Sentiment: BMO sees 39% potential upside after a recent share-price pullback. The analysis points to GE Vernova’s exposure to electricity demand from AI and data-center infrastructure. Article: BMO Sees 39% Upside
• Neutral Sentiment: GE Vernova’s planned $9 billion purchase of Trench Group would add grid-equipment capabilities, positioning the company to benefit from rising electricity needs. The acquisition’s strategic benefits come with a substantial price tag. Article: GE Vernova Is Paying $9 Billion for Trench Group
• Negative Sentiment: Guggenheim lowered its expectations for GE Vernova’s stock price, a potential near-term headwind amid the recent pullback. Article: Guggenheim Has Lowered Expectations for GE Vernova Stock Price

Hedge Funds Weigh In On GE Vernova

A number of hedge funds have recently modified their holdings of the business. Manning & Napier Advisors LLC raised its position in shares of GE Vernova by 68.4% during the first quarter. Manning & Napier Advisors LLC now owns 32 shares of the company's stock worth $26,000 after acquiring an additional 13 shares during the last quarter. Parvin Asset Management LLC bought a new stake in GE Vernova in the second quarter valued at approximately $32,000. Strategic Wealth Advisors LLC acquired a new stake in GE Vernova during the 2nd quarter valued at approximately $35,000. Pingora Partners LLC acquired a new stake in GE Vernova during the 2nd quarter valued at approximately $36,000. Finally, IMG Wealth Management Inc. acquired a new stake in GE Vernova during the 2nd quarter valued at approximately $39,000.

GE Vernova Trading Down 9.9%

The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.62 and a current ratio of 0.83. The firm's fifty day simple moving average is $932.44 and its 200-day simple moving average is $942.76. The stock has a market cap of $219.07 billion, a P/E ratio of 21.72, a price-to-earnings-growth ratio of 2.92 and a beta of 1.25.

GE Vernova (NYSE:GEV - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $4.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.03 by $0.78. GE Vernova had a net margin of 23.54% and a return on equity of 46.50%. The firm had revenue of $12.64 billion for the quarter, compared to the consensus estimate of $11.99 billion. During the same quarter in the previous year, the company earned $1.64 EPS. The company's revenue for the quarter was up 26.8% on a year-over-year basis. Equities research analysts expect that GE Vernova Inc. will post 16.05 EPS for the current fiscal year.

GE Vernova Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Tuesday, October 27th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Tuesday, October 27th. GE Vernova's dividend payout ratio (DPR) is presently 5.25%.

GE Vernova Company Profile

GE Vernova Inc NYSE: GEV is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.

Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.

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