Ge Stock – The stock closed below its 200-day moving average for more than two years, the longest rally in at least 40 years.
GE shares rose on Monday after an agreement to sell its biopharmaceutical business to Danaher Corp for $21.4 billion in cash, but remained in its longest run below its 200-day moving average seen in at least 40 years. .
GE said the biopharmaceutical business, which was part of GE Life Sciences and under the GE Healthcare umbrella, generated about $3 billion in revenue in 2018. Lawrence Culp, who was named GE chairman and CEO in October 2018, was the CEO of Danaher. from 2001 to 2014. It recently announced plans to spin off the entire healthcare unit in an initial public offering later this year.
Investing In General Electric Stock (ge)
GE GE, +1.21% said the deal with Danaher DHR, -1.08% would allow it to accelerate its plan to pay down debt while continuing to strengthen its balance sheet. The news comes on the same day that GE announced the merger of its transportation business with Wabtec Corp. WAB, +0.30% completed its revised terms last month.
GE shares rose 6.4 percent in brisk trading to close at a four-month high, but pared earlier gains as much as 15.5 percent to hit an intraday high of $11.75. Volume rose to more than 290.2 million shares, nearly triple the day’s average.
The stock briefly traded above its 200-day moving average (DMA), which many on Wall Street see as a dividing line between long-term bullish and bearish trends, but retreated below a key chart level. Read more about DMA-200.
The 200-DMA hit $10.92 at Monday’s close, according to FactSet, and has fallen roughly 2 cents a day in recent weeks. The stock has not closed above the 200 DMA since January 19, 2017.
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The current streak of 526 sessions below a key technical threshold is the longest since data has been available on FactSet since February 1979. The previous longest streak below the 200 DMA was 335 sessions, which ended on July 1 of 2009.
The stock is now up 55% from its December 21, 2018 close at $6.71, the lowest close since the financial crisis of $6.66 on March 5, 2009. However, the stock remains of technical uncertainty. Above the 50-day moving average, a short-term trend tracker, but below the 200-DMA of January 7, 2019. This 34-day streak of uncertainty would be the longest since the 51-day period ended on June 12. 2009
S&P Global Ratings said the proposed sale of the biopharmaceutical business indicates GE’s deleveraging could be more significant than we currently anticipate, but the transaction does not affect GE’s long-term BBB+ credit rating or the company’s stable outlook. The BBB+ rating is three notches above “junk” status.
Fitch Ratings also maintained its rating at BBB+, but said the outlook remains negative due to concerns about weak free cash flow, the risk that GE will need more capital support, regulatory investigations and significant challenges in its energy business.
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Meanwhile, CFRA analyst Jim Corridor reaffirmed his buy rating on the stock and raised his price target to $15 from $13. He said GE’s decision to sell its biopharmaceutical business and keep GE Healthcare’s medical imaging division shows the company is thinking “creatively and intelligently” as it moves “rapidly” on its transformation plan.
GE, which reported fourth-quarter and full-year 2018 results on Jan. 31, said it will file audited 2018 results with the Securities and Exchange Commission this week. Culp in J.P., the company said. Morgan Aviation, Transportation & Industries will host a GE Insurance “Learn In” conference for investors on March 7 and a “GE Outlook” conference on March 14. .
Also read: GE shares hit biggest gain in 10 years as CEO Culp embraces reality over hope
GE was the second gainer in the S&P 500 SPX with -0.21 percent, behind Danaher’s 8.5 percent gain.
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But despite GE’s recent rally, it’s still down 26% over the past 12 months, while the Dow Jones Industrial Average DJIA, -0.42% is up 1.5% and the S&P 500 is up 0.6%.
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Tommy Kilgore is an associate editor for corporate news and investment based in New York. You can follow him on Twitter @TomiKilgore. After the conference call begins, stocks move from gains to losses, reminding investors of the previous selloff after the CEO’s speech began.
Forecast Of The Day: Ge’s Healthcare Equipment Revenue
A new CEO was the same result for investors in General Electric, as shares of the industrial conglomerate fell to their lowest level in more than nine years on Tuesday after the start of a post-earnings conference call.
General Electric reported third-quarter earnings and revenue that missed expectations, said it would cut its dividend to almost nothing to conserve cash and reorganize its energy business. Now, the stock initially rose as much as 2.3 percent in premarket. business
However, the honeymoon period for new CEO Lawrence Culp appeared to be over before it really began, but the stock fell sharply after the start of the post-earnings conference call with analysts at 8am. eastern time He remembered previous conferences, where stocks would sell off after then-CEO John Flannery spoke.
Shares of GE, +1.21% fell 8.8% in very active trading, ignoring a short-lived initial jump into positive territory, to close at its lowest close since April 1, 2009. Volume of trading jumped to 345 million shares compared to the total daily average. About 104.8 million shares, enough to make GE the most traded stock on major US exchanges.
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GE shares are currently down 25% over the past three months and 50% over the past year. By comparison, the SPDR Industrial Select Sector XLI ETF, -0.12% has fallen 3.1% over the past 12 months and the S&P 500 index SPX, -0.21% has gained 4.2%.
In a call on Tuesday, Chief Financial Officer Jamie Miller said the issues holding back the company’s troubled energy business will continue to have a “bigger and deeper impact” than initially expected, causing GE to significantly miss revenue and cash flow targets. of the full year Transcript provided by FactSet.
The company also disclosed in its Q10 filing with the Securities and Exchange Commission that the SEC and Justice Department have expanded their investigation to include GE’s large goodwill impairment charges announced earlier this month.
CFO Miller also said $240 million in warranty and maintenance reserves related to the failure of GE Power’s H-frame gas turbine blades, which forced Exelon to close a plant. Expect to incur similar costs over time as planned outages occur with replacement blades currently in production.
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At least $3 billion in aid to GE Capital is planned for 2019, Miller added, and additional support may be needed to reach desirable capital levels.
CFRA analyst Jim Corridor reiterated his rating on GE but lowered his price target on the stock to $12 from $14. He praised Culp for doing something “brave and necessary” by cutting its quarterly dividend from 12 cents to just 1 cent per share, but he doesn’t expect the stock price to recover “until Culp gets some tangible results.”
UBS’s Steve Winoker maintained his neutral rating and $13 price target on the stock, saying he thinks the dividend cut, which will take GE’s $3.9 billion for the year, is a positive move as they strive to reduce the leverage.
Streaming giant Netflix will report its tech earnings on Tuesday, and the Conference Board will report its leading economic indicator for March on Thursday.
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Tommy Kilgore is an associate editor for corporate news and investment based in New York. You can follow him on Twitter @TomiKilgore. The Chevron Home Premium icon indicates an expandable section or menu, or sometimes previous or next navigation options. Markets
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Troubled GE recently fired CEO John Flannery after less than a year. The company said Monday that H. Lawrence Culp, Jr. will assume the role of President and Chief Executive Officer, effective immediately.
Since reaching a peak market value of $594 billion in August 2000, GE has lost nearly $500 billion in value. As of Friday’s close, the company was worth just $98 billion.
Ge’s Recent History Explained Through Its Stock Price
While GE shares rose 16% on news of Flannery’s departure, the company’s shares are still down 29% this year. Losses widened as investors grappled with the toxic combination of rising debt and falling profits.
General Electric’s latest problems come from
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