Shares of GE Aerospace (NYSE: GE) have been downgraded by Wall Street Zen from a “buy” rating to a “hold” rating, as stated in a research note released on Saturday. This change reflects a growing divergence in how analysts view the company’s performance and future prospects, particularly following its latest earnings report.
In recent evaluations, several financial institutions have issued contrasting viewpoints on GE Aerospace’s stock. On October 27, Bank of America raised its target price from $310.00 to $365.00, maintaining a “buy” rating. Meanwhile, Zacks Research downgraded the company from a “strong-buy” to a “hold” rating on September 26. JPMorgan Chase & Co. also increased its price objective from $275.00 to $325.00, designating the stock as “overweight” on the same day as Bank of America’s report.
Another significant update came from TD Cowen, which raised its price target from $300.00 to $330.00, affirming a “buy” rating on October 7. In contrast, BNP Paribas Exane initiated coverage of GE Aerospace on November 18 with an “underperform” rating. Currently, of the 19 equity research analysts covering the stock, 15 have rated it a “buy,” while two assigned a “hold” rating and two issued a “sell” rating. As of now, the consensus rating is “Moderate Buy,” with a price target averaging $301.27, according to data from MarketBeat.com.
Quarterly Earnings Exceed Expectations
On October 21, GE Aerospace released its quarterly earnings report, showcasing a significant performance boost. The company reported earnings per share (EPS) of $1.66, which surpassed analysts’ consensus estimates of $1.46 by $0.20. The firm achieved a net margin of 18.34% and a return on equity of 34.01%. Revenue for the quarter hit $11.31 billion, exceeding the expected $10.29 billion. This marks a year-over-year revenue increase of 26.4%, compared to $1.15 EPS from the same quarter last year.
Looking ahead, GE Aerospace has projected its fiscal year 2025 EPS guidance to be between $6.000 and $6.200. Analysts collectively forecast an EPS of $5.40 for the current fiscal year.
Dividend Announcement and Insider Activity
In addition to its earnings report, GE Aerospace announced a quarterly dividend of $0.36, which was paid to shareholders on October 27. The dividend yield stands at 0.5%, with an annualized total of $1.44. The ex-dividend date was September 29, and the company’s payout ratio is currently 19.23%.
Recent insider trades have also drawn attention. On November 19, Senior Vice President Russell Stokes sold 8,000 shares at an average price of $297.71, totaling approximately $2.38 million. Following this sale, Stokes retained ownership of 150,434 shares, valued at around $44.79 million, which reflects a 5.05% decrease in his stake. Insider ownership constitutes only 0.21% of the total stock.
Institutional investors have continued to adjust their holdings in GE Aerospace. Jacobsen Capital Management increased its position by 1.4% in the third quarter, bringing its total to 2,295 shares valued at $690,000. Other notable changes include Harfst & Associates Inc. raising its stake by 0.4% and Ledyard National Bank increasing its ownership by 1.2%. Currently, institutional investors hold approximately 74.77% of GE Aerospace’s stock.
GE Aerospace, part of General Electric, specializes in aerospace products and services, operating through segments including Commercial Engines and Services and Defense and Propulsion Technologies. The company offers a range of jet and turboprop engines and integrated systems for various aviation sectors.
As analysts continue to assess GE Aerospace’s performance and future trajectory, the stock’s fluctuating ratings emphasize the complexities within the aerospace industry during this economic environment.
