WCM Investment Management LLC has reduced its holdings in GE Aerospace (NYSE: GE) by 1.4% during the third quarter of 2023. According to its latest filing with the Securities and Exchange Commission (SEC), WCM Investment Management now owns 2,354,225 shares after selling 34,427 shares in the quarter. This reduction means that GE Aerospace represents approximately 1.4% of the firm’s investment portfolio, ranking as its 26th largest holding.
As of the most recent SEC filing, WCM Investment Management’s stake in GE Aerospace is valued at about $691.3 million, equating to around 0.22% of the total company shares. The recent activity reflects broader trends among institutional investors, with several firms adjusting their positions in GE Aerospace.
In the second quarter, Norges Bank acquired a significant stake in GE Aerospace, investing approximately $3.41 billion. Additionally, Jennison Associates LLC increased its position by 21.5% during the third quarter, now holding 8,430,878 shares valued at around $2.54 billion after purchasing an additional 1,494,541 shares. Vanguard Group Inc. also raised its stake by 1.6% in the second quarter, acquiring 1,482,069 shares to total 91,989,511 shares, valued at $23.68 billion.
Lazard Asset Management LLC made a substantial increase of 4,253.7%, acquiring 796,422 shares worth approximately $205 million. Meanwhile, Geode Capital Management LLC grew its position by 3.1%, now holding 24,113,967 shares valued at $6.18 billion. Overall, institutional investors currently own 74.77% of GE Aerospace’s stock.
Stock Performance and Financial Metrics
On Tuesday, GE Aerospace shares opened at $308.93. The company boasts a market capitalization of $325.86 billion and a price-to-earnings (P/E) ratio of 37.95. Key financial metrics include a debt-to-equity ratio of 1.00, a current ratio of 1.04, and a quick ratio of 0.74. Over the past year, shares have fluctuated between a low of $159.36 and a high of $332.79. The company’s 50-day simple moving average stands at $305.67, while the 200-day average is $294.43.
In its most recent earnings report, released on January 22, 2024, GE Aerospace reported earnings per share (EPS) of $1.57, exceeding analysts’ expectations of $1.43. The company achieved a net margin of 18.98% and a return on equity of 35.52%. Revenue for the quarter reached $11.90 billion, surpassing the anticipated $11.27 billion. This marks a year-over-year revenue increase of 17.6%. GE Aerospace has set guidance for fiscal year 2026 at an EPS range of $7.10 to $7.40, with analysts forecasting an EPS of $5.40 for the current fiscal year.
Recent Developments and Analyst Ratings
Recently, GE Aerospace announced a quarterly dividend of $0.36, which was paid on January 26, 2024. This represents an annualized dividend of $1.44 and a yield of 0.5%. The dividend payout ratio currently stands at 17.69%.
Analyst ratings for GE Aerospace have varied. BNP Paribas Exane recently lowered its price target from $305.00 to $290.00 and assigned an “underperform” rating. Contrarily, JPMorgan Chase & Co. raised its target price from $325.00 to $335.00 while maintaining an “overweight” rating. Citigroup reiterated a “buy” rating and adjusted its price target to $380.00, up from $378.00. Overall, the consensus rating remains at “Moderate Buy” with an average target price of $319.00.
In terms of insider trading, Senior Vice President Russell Stokes sold 8,000 shares of GE Aerospace on November 19, 2023, at an average price of $297.71, totaling approximately $2.38 million. Following this transaction, Stokes retains 150,434 shares valued at around $44.79 million. Currently, insiders hold 0.21% of GE Aerospace’s stock.
Recent news surrounding GE Aerospace includes a positive credit rating upgrade from Moody’s, which raised its senior unsecured ratings to A2. This upgrade improves the company’s credit profile and may reduce future funding costs. Analysts also highlighted GE’s expected low double-digit growth in 2026, further enhancing investor sentiment.
Despite these positive developments, there are operational risks, including a potential durability issue identified in collaboration with Boeing concerning the engine seal for the upcoming 777X aircraft. This issue could lead to inspections or design changes if verified.
As GE Aerospace continues to navigate the complexities of the aerospace market, its strategic adjustments and solid financial performance position it favorably among institutional investors and analysts alike.
