Shares of GE Aerospace (NYSE:GE) have been downgraded by Wall Street Zen from a buy rating to a hold rating, as noted in a research note released on Saturday. This marks a significant shift in sentiment for the aerospace giant, which has attracted mixed reviews from various financial analysts in recent weeks.
Analysts have shown varying perspectives on GE Aerospace. On Monday, October 27, Bank of America increased its target price on the stock from $310.00 to $365.00, maintaining a buy rating. Conversely, Zacks Research reduced its rating from strong buy to hold on September 26. In another report, JPMorgan Chase & Co. raised its price target from $275.00 to $325.00, reiterating its overweight rating on the stock.
In addition, TD Cowen adjusted its price objective from $300.00 to $330.00, also giving GE a buy rating. In contrast, BNP Paribas Exane recently initiated coverage with an underperform rating. Overall, the consensus among fifteen equities research analysts indicates a “Moderate Buy” rating with a target price of $301.27, according to data from MarketBeat.com.
Recent Earnings and Dividend Announcement
In its latest quarterly earnings report, released on October 21, GE Aerospace reported earnings per share (EPS) of $1.66, surpassing analyst expectations of $1.46 by $0.20. The company generated revenue of $11.31 billion, exceeding the consensus estimate of $10.29 billion. This represents a remarkable year-over-year revenue growth of 26.4%, compared to an EPS of $1.15 in the same quarter the previous year.
Looking ahead, GE Aerospace has projected its full-year guidance for fiscal year 2025 to be between $6.000 and $6.200 EPS. Analysts estimate that the company will report an EPS of $5.4 for the current fiscal year.
The company also announced a quarterly dividend of $0.36, which was paid on October 27. Shareholders who were on record as of September 29 received this dividend, which results in an annualized dividend of $1.44 and a yield of 0.5%. The ex-dividend date was also September 29. Notably, GE Aerospace’s payout ratio stands at 19.23%.
Insider Transactions and Institutional Ownership
Recent insider activity includes the sale of 8,000 shares by Senior Vice President Russell Stokes on November 19. Stokes sold the shares at an average price of $297.71, totaling approximately $2.38 million. Following this transaction, he retains a stake of 150,434 shares, valued at around $44.79 million, indicating a 5.05% decrease in his ownership.
Corporate insiders currently own 0.21% of GE Aerospace’s stock. Meanwhile, institutional investors have also made adjustments to their holdings. For instance, Jacobsen Capital Management increased its stake by 1.4% in the third quarter, now owning 2,295 shares valued at $690,000. Similarly, Harfst & Associates Inc. and Ledyard National Bank raised their positions modestly, reflecting a broader trend among large investors.
Overall, institutional ownership of GE Aerospace stands at approximately 74.77%, highlighting strong interest from major investment firms.
As the market continues to react to the evolving landscape of aviation and defense, the next few quarters will be critical for GE Aerospace as it navigates these challenges and opportunities.
