GE Aerospace (NYSE:GE) Shares Up 2.9% – Should You Buy?

GE Aerospace (NYSE:GE) shares shot up 2.9% during trading on Wednesday. The stock traded as high as $333.75 and last traded at $329.9120. Approximately 6,353,545 shares traded hands during trading, an increase of 23% from the average daily volume of 5,147,806 shares. The stock had previously closed at $320.67.

Key GE Aerospace News

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

• Positive Sentiment: GE Aerospace will supply LM2500 marine gas turbines for two U.S. Navy Flight III destroyers. The contract adds defense business and potential follow-on maintenance revenue. Read More.
• Positive Sentiment: Delayed aircraft deliveries are prompting airlines to extend the lives of existing fleets, supporting demand for engine parts, shop visits and services. GE’s large services backlog and recurring aftermarket business could benefit from this trend.
• Positive Sentiment: Commercial engine momentum remains strong: orders and service demand for LEAP, GEnx and GE9X engines are supported by air-traffic growth and fleet renewal. CFM International, GE’s joint venture with Safran, recently announced major LEAP engine agreements. Read More.
• Positive Sentiment: Dayton’s role in GE Aerospace’s hybrid-electric aircraft effort highlights longer-term technology development and potential innovation opportunities. Read More.
• Neutral Sentiment: GE call-option volume was unusually high, up 161% versus its average. This may reflect bullish positioning, but options activity is speculative and does not establish the direction of future share performance.
• Negative Sentiment: GE Aerospace updated inspection guidance for certain GEnx-1B engines after a study reported premature turbine-blade cracks. More frequent checks could create maintenance and scheduling burdens for operators and uncertainty around affected engines. Read More.
• Negative Sentiment: GE trades at a relatively high earnings multiple, leaving the shares sensitive to concerns about how much future growth is already reflected in the valuation.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on GE shares. Morgan Stanley reissued an “overweight” rating and issued a $375.00 price target (down from $400.00) on shares of GE Aerospace in a research report on Wednesday, October 21st. Guggenheim set a $380.00 price objective on shares of GE Aerospace in a research note on Wednesday, October 21st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $378.00 target price on shares of GE Aerospace in a research note on Wednesday, October 21st. Vertical Research reaffirmed a “buy” rating and issued a $400.00 price objective on shares of GE Aerospace in a research report on Tuesday, October 20th. Finally, HC Wainwright set a $375.00 price objective on shares of GE Aerospace in a report on Wednesday, October 21st. Sixteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $373.45.

GE Aerospace Trading Up 2.9%

The firm’s 50-day simple moving average is $316.27 and its 200 day simple moving average is $323.07. The firm has a market capitalization of $340.91 billion, a price-to-earnings ratio of 38.05, a P/E/G ratio of 2.15 and a beta of 1.43. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.98 and a quick ratio of 0.68.

GE Aerospace (NYSE:GE) last announced its quarterly earnings results on Tuesday, October 20th. The company reported $2.25 EPS for the quarter, beating analysts’ consensus estimates of $2.01 by $0.24. GE Aerospace had a return on equity of 44.43% and a net margin of 17.31%. The firm had revenue of $13.29 billion for the quarter, compared to analyst estimates of $12.88 billion. During the same period last year, the firm posted $1.66 earnings per share. The business’s revenue for the quarter was up 24.7% on a year-over-year basis. Equities analysts expect that GE Aerospace will post 8.16 earnings per share for the current year.

GE Aerospace Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, October 26th. Shareholders of record on Monday, October 5th were given a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Monday, October 5th. GE Aerospace’s dividend payout ratio (DPR) is currently 21.68%.

Institutional Investors Weigh In On GE Aerospace

Large investors have recently added to or reduced their stakes in the company. Gryphon Financial Partners LLC increased its position in shares of GE Aerospace by 4.0% during the third quarter. Gryphon Financial Partners LLC now owns 10,549 shares of the company’s stock valued at $3,294,000 after buying an additional 401 shares during the period. Vestor Capital LLC raised its holdings in shares of GE Aerospace by 15.3% during the third quarter. Vestor Capital LLC now owns 79,780 shares of the company’s stock valued at $24,914,000 after purchasing an additional 10,611 shares during the last quarter. Kestra Investment Management LLC lifted its holdings in GE Aerospace by 278.7% in the third quarter. Kestra Investment Management LLC now owns 3,276 shares of the company’s stock valued at $1,023,000 after acquiring an additional 2,411 shares during the period. AlphaCore Capital LLC grew its position in shares of GE Aerospace by 15.0% during the 3rd quarter. AlphaCore Capital LLC now owns 20,945 shares of the company’s stock valued at $6,541,000 after acquiring an additional 2,729 shares during the period. Finally, Joseph Group Capital Management increased its holdings in GE Aerospace by 23.1% in the 3rd quarter. Joseph Group Capital Management now owns 320 shares of the company’s stock worth $100,000 after acquiring an additional 60 shares in the last quarter. Hedge funds and other institutional investors own 74.77% of the company’s stock.

GE Aerospace Company Profile

GE Aerospace (NYSE: GE) is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.

GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.