This Simple Rating Report Sets the Tone in General Electric Company (GE)

Analysts at Deutsche Bank lifted target price for shares of General Electric Company (NYSE:GE) but repeated their Hold recommendation for the stock in their opinion released on November 30. The price target has been raised from $11 to $7. Credit Suisse analysts again handed out a Neutral rating to GE stock but they lifted target price for the shares in a flash note to investors on November 12. The price target has been raised from $12 to $10. Credit Suisse, analysts launched coverage of GE stock with a Neutral rating, according to their flash note to investors on November 12. Analysts at JP Morgan are sticking to their Underweight recommendation. However, on November 09, they lifted target price for these shares to $6 from $10. Analysts at JP Morgan, made their first call for the stock with a Underweight rating, according to a research note that dated back to November 09.

By watching the trading activity of corporate insiders, it will become easier to get a sense of General Electric Company (NYSE:GE)’s prospects. The earliest insider trade took place on 11/14/2018. Dsouza Francisco gathered a total of 60 thousand shares of company at average share price of $8.32. The total for the purchase was set at $499.2 thousand. After this transaction, the Director account balance stood at 151.5 thousand shares. The stock lost -12.5 percent since that insider purchase. On 11/06/2018, Dimitrief Alexander, Senior Vice President, purchased 10 thousand shares at a price per share of $9.48. This added 94.8 thousand shares to the insider’s fortune and the stock saw a -23.21 percent retreat in value since the news became public. This transaction left 180.83 thousand shares in the Senior Vice President account. On 11/01/2018, Chairman and CEO Culp H Lawrence Jr performed a purchase transaction worth $2.19 million. This purchase at $9.73 each has added 225 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -25.18 percent decrease since the transaction was reported. The insider now is left with 598.39 thousand shares remaining in the account. Culp H Lawrence Jr, who performs the Director job, bought 191 thousand shares for $2.49 million. The acquisition occurred on 07/24/2018 was priced at $13.04 per share. The share price plunged -44.17 percent since the reporting date. Culp H Lawrence Jr now left with a stake of 373.39 thousand GE stock worth $2.72 million after the insider buying.

General Electric Company (GE) is expected to jump by 77.2 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21-month high price target. This represents a whopping 188.46 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $11, which represents a return potential of 51.1 percent when compared to the closing price of the stock of $7.28 on Tuesday, December 04. The lowest price target for the stock is $6 — slightly more than -17.58 percent from GE’s current share price.

The shares are currently floating around the first support level of $7.1. Below this, the next support is placed in the zone of $6.93. Till the time, the GE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 29.69 on daily chart, which may remain a cause for comfort. If the price breaks below $6.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $7.63 mark may result into a pull-back move towards $7.99 level.

GE shares dropped -0.53 points or -6.79 percent on Tuesday to $7.28 with a heavy trade volume of 131 million shares. After opening the session at $7.75, the shares went as high as $7.81 and as low as $7.28, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $67 billion and now has 9.21 billion shares outstanding. General Electric Company (GE) stock has lost -21.64 percent of market value in 21 trading days.

GE stock has a trailing 3-year beta of 0.94, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$3.26 a share in the trailing twelve months. The stock’s value has fallen -58.28 percent year to date (YTD) against a decline of -59.44 percent in 12 month’s time. The company’s shares still trade -62.45 percent away from its 1-year high of $19.39 and 0.28 percent up from 52-week low of $7.26. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of General Electric Company (GE) are trading at a P/E ratio of 27.96 times earnings reported for the past 12 months. The industry GE operates in has an average P/E of 20.28. Its P/E ratio went as low as 15.18X and as high as 227.75 over the 5-year span. Further, it is sporting a 0.56 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.92. 21.8 percent is the gross profit margin for General Electric Company and operating margin sits at -24.9 percent. Along with this, the net profit margin is -27.5 percent.

GE will be showing off its Q4 earnings on January 18. Analysts are forecasting revenue to climb 2.2 percent to $32.1B in the next fiscal quarter, while earnings are seen soaring by nearly -18.52 percent to $0.22 per share. History has shown that shares in General Electric Company have gone down on 20 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.14 per share, worse than the $0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $29.6B, worse than the $29.9B analysts expected. Earnings are estimated to increase by -130 percent this year, 20.61 percent next year and continue to increase by 3.21 percent annually for the next 5 years.