18:55
Traffic jam:   5
$
92.5919
100.2704

General Electric shares fell 15% in 3 days

12 March 2021
3241
2 min.
7
General Electric shares fell 15% in 3 days

The company's share price

U.S. shares of General Electric Co (NYSE:GE). have fallen 14.6 percent in the past three days after coming close to a 3-year high on March 8.

The company made a number of announcements this week that impacted investor sentiment, MarketWatch writes.

In particular, it announced the sale of its GE Capital Aviation Services (Gecas) aircraft leasing unit for $30 billion to Ireland's AerCap Holdings NV. Gecas is the largest remaining part of GE Capital, the company's financial arm that once competed with major US banks but nearly brought GE to ruin during the 2008 financial crisis.

The deal is expected to close in nine to 12 months. After that, GE Capital will effectively be liquidated whatever remains in the unit after the sale of Gecas will be integrated into GE Industrial.

The company has also announced a 1-to-8 consolidation (reverse split) of shares, which will increase the value of GE's securities eight-fold while reducing the number of shares outstanding to "more typical for companies with comparable market capitalisation", the company said in a statement.

The consolidation will take place before the annual shareholder meeting scheduled for May 4.

In addition, GE has updated its financial outlook. The company now expects its adjusted earnings to be 15-25 cents per share in 2021 and revenues to increase by a few percent. Free cash flow is expected to be in the range of $2.5-4.5bn

Analysts polled by FactSet on average estimate earnings of 25 cents per share, free cash flow of $3.6 billion, and expect a 1% increase in revenue.

Experts at Deutsche Bank (DE:DBKGn) forecast a $14 price target for GE securities. They, like analysts at Oppenheimer and J.P. Morgan, have assigned a "hold" recommendation for the company's shares. UBS advises to buy GE securities, setting the target price at $15.

GE shares fell 7.4% (to $12.27) in yesterday's trading after falling 5.4% a day earlier. Over the past 12 months, the company's capitalisation has risen almost 47% to $116.2bn, while the S&P 500 Index has gained 44% over the period.

Companies7 in the news

AerCap
2 place
Deutsche Bank
3 place
MarketWatch
4 place
FactSet
5 place
JP Morgan Chase
7 place
Section:

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8112678553
Died this year
14284895
Born this year
35143370