GE Vernova (NYSE:GEV) Shares Down 8.1% on Disappointing Earnings

GE Vernova Inc. (NYSE:GEV)’s stock price fell 8.1% on Wednesday following a dissappointing earnings announcement. The stock traded as low as $985.03 and last traded at $991.7990. Approximately 4,797,921 shares changed hands during mid-day trading, an increase of 71% from the average session volume of 2,809,006 shares. The stock had previously closed at $1,078.81.

The company reported $2.47 earnings per share for the quarter, missing the consensus estimate of $3.17 by ($0.70). GE Vernova had a net margin of 23.81% and a return on equity of 43.97%. The business had revenue of $11.10 billion during the quarter, compared to analysts’ expectations of $10.78 billion. During the same period in the previous year, the business earned $1.86 EPS. The business’s revenue was up 21.9% on a year-over-year basis.

GE Vernova Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 14th. Investors of record on Tuesday, June 16th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Tuesday, June 16th. GE Vernova’s dividend payout ratio is 5.83%.

Key Headlines Impacting GE Vernova

Here are the key news stories impacting GE Vernova this week:

• Positive Sentiment: GE Vernova raised its full-year revenue outlook for the second straight quarter, helped by strong power-demand trends and surging orders, including AI/data center-related demand. Reuters article
• Positive Sentiment: The company reported revenue of $11.1 billion, above expectations, and said cash flow and backlog improved, signaling continued operational strength. Yahoo Finance article
• Positive Sentiment: Order growth was described as record-setting, which supports future sales visibility and reinforces the investment case around grid and power infrastructure demand. Yahoo Finance article
• Neutral Sentiment: Several analysts and commentary pieces are now framing the stock as fairly valued after its big run, suggesting the market may need even stronger execution to justify further gains. Yahoo Finance article
• Negative Sentiment: GE Vernova missed quarterly earnings expectations, which is weighing on sentiment despite the revenue beat. Zacks article
• Negative Sentiment: Margin pressure in the wind segment remains a concern, with losses widening and that business continuing to dilute overall profitability. Proactive Investors article
• Negative Sentiment: Management warned that global tariffs could increase costs by as much as $200 million, creating an added headwind for future margins and earnings. Benzinga transcript

Analysts Set New Price Targets

Several equities research analysts have issued reports on GEV shares. Barclays lifted their target price on shares of GE Vernova from $993.00 to $1,250.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. Robert W. Baird raised their price objective on shares of GE Vernova from $1,008.00 to $1,400.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. Citigroup lifted their price objective on shares of GE Vernova from $779.00 to $1,110.00 and gave the stock a “neutral” rating in a report on Monday, April 13th. Sanford C. Bernstein began coverage on shares of GE Vernova in a report on Tuesday, June 16th. They issued an “outperform” rating and a $1,206.00 price objective for the company. Finally, JPMorgan Chase & Co. increased their target price on GE Vernova from $1,000.00 to $1,150.00 and gave the company an “overweight” rating in a report on Thursday, April 16th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,089.88.

Insider Activity

In other GE Vernova news, CEO Victor Abate sold 4,819 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $948.08, for a total value of $4,568,797.52. Following the completion of the sale, the chief executive officer owned 1,835 shares in the company, valued at approximately $1,739,726.80. This trade represents a 72.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Matthew Joseph Potvin sold 2,333 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $1,059.09, for a total value of $2,470,856.97. Following the completion of the sale, the chief accounting officer owned 3,549 shares of the company’s stock, valued at approximately $3,758,710.41. This trade represents a 39.66% decrease in their position. The SEC filing for this sale provides additional information. 0.21% of the stock is owned by company insiders.

Institutional Trading of GE Vernova

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GEV. Auto Owners Insurance Co increased its position in GE Vernova by 110,973.4% during the 4th quarter. Auto Owners Insurance Co now owns 34,858,156 shares of the company’s stock valued at $2,278,224,000 after purchasing an additional 34,826,773 shares during the period. Vanguard Group Inc. lifted its position in shares of GE Vernova by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 25,023,625 shares of the company’s stock worth $16,354,691,000 after purchasing an additional 208,162 shares during the period. State Street Corp boosted its stake in shares of GE Vernova by 2.1% during the 4th quarter. State Street Corp now owns 11,469,670 shares of the company’s stock valued at $7,496,232,000 after purchasing an additional 231,392 shares in the last quarter. Geode Capital Management LLC increased its position in shares of GE Vernova by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 6,249,193 shares of the company’s stock valued at $4,074,039,000 after buying an additional 68,894 shares during the period. Finally, Morgan Stanley increased its position in shares of GE Vernova by 12.8% during the fourth quarter. Morgan Stanley now owns 6,054,474 shares of the company’s stock valued at $3,957,024,000 after buying an additional 685,466 shares during the period.

GE Vernova Trading Down 8.1%

The company has a market capitalization of $266.52 billion, a P/E ratio of 28.89, a P/E/G ratio of 3.98 and a beta of 1.09. The stock’s 50 day moving average is $1,037.70 and its 200-day moving average is $916.52. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.89 and a quick ratio of 0.65.

About GE Vernova

GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.

The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.