Shares of General Electric Company (NYSE:GE) recorded -2.49% loss during trading session on February 8th, 2019. The script traded as low as $9.54 and last traded at $9.81. 118.53 million shares changed exchanged hands during trading, an increase of 11.33% from the 30-day average session volume of 133.67M shares. The firm had previously closed at $10.06. The company has $8.92B outstanding shares, price-to-earnings-growth ratio of 0.72 and a beta of 1.00. The company has a RSI of 60.52, ATR of 0.48 and a volatility of 4.46% this week. GE has a 52 week low price of $6.66 and a 52 week high price of $15.59.
Investors have identified the tech company General Electric Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 87.50B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
General Electric Company (GE) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GE, the company has in raw cash 26.93 billion on their books with 20.58 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 90.87 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
GE were able to record 5.42 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 17.36 billion. In cash movements, the company had a total of 435 million as operating cash flow.
Potential earnings growth for General Electric Company (GE)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, General Electric Company recorded a total of 29.57 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.04% coming in sequential stages and their sales for the third quarter reducing by -0.02%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 22.85 billion trying to sell their products during the last quarter, with the result yielding a gross income of 6.73 billion. This allows shareholders to hold on to 8.92B with the revenue now reading -22769000000 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.12 cents a share).
Is the stock of GE attractive?
Having a look at the company’s valuation, the company is expected to record 0.67 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GE sounds very interesting.
In related news, Director DSOUZA FRANCISCO bought 60,000 shares of the company’s stock in a transaction that recorded on November 14th, 2019. The purchase was performed at an average price of 8.32, for a total value of 499,200. As the purchase deal closes, the Senior Vice President DSOUZA FRANCISCO now bought 10,000 shares of the company’s stock, valued at 94,800. Also, 10% Owner GENERAL ELECTRIC CO sold 9,836,521 shares of the company’s stock in a deal that was recorded on November 6th, 2019. The shares were sold at an average cost of 17.60 per share, with a total market value of 5,695,554. Following this completion of disposal, the Chairman and CEO now holds 225,000 shares of the company’s stock, valued at 2,189,250. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.15%.
6 out of 21 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on General Electric Company stock. 2 analysts has assigned a Sell rating on the GE stock. The 12-month mean consensus price target for the company’s shares has been set at $11.61.