GE Makes First Dividend Cut Since Depression

GE Healthcare CEO John Flannery

Mesirow Financial Investment Management Us Value Equity acquired 43,495 shares as Diebold Nxdf Inc (DBD)'s stock declined 12.62%. ELM Advisors LLC's holdings in General Electric were worth $583,000 at the end of the most recent reporting period.

Several hedge funds have recently made changes to their positions in the company. Oppenheimer Holdings also issued estimates for General Electric's Q4 2017 earnings at $0.30 EPS, Q1 2018 earnings at $0.20 EPS, Q2 2018 earnings at $0.25 EPS, Q3 2018 earnings at $0.28 EPS, Q4 2018 earnings at $0.42 EPS and FY2018 earnings at $1.15 EPS. Greenwich Investment Management Inc. owns 109,794 shares or 4.23% of their USA portfolio. The Texas-based Rench Wealth Management Inc. has invested 3.2% in the stock. Among active positions in the latest quarter, 830 holders increased their positions by a total of 221.13 million shares, 1,180 holders decreased the positions by a total of 233.24 million shares, and 157 holders held their positions. Finally, Patten & Patten Inc. $29.51's average target is 51.26% above currents $19.51 stock price.

But in the wake of a collapsing share price and declining earnings, a dividend cut may actually be a good thing for General Electric. While it slashed its dividend in half, the company also set a $3 billion share buyback priority. General Electric Co. now has $171.27 billion valuation.

The cut will save GE $4.16 billion in payouts, the eighth biggest dividend cut in history among S&P 500 companies, according to Howard Silverblatt, senior index analyst of S&P Dow Jones Indices. General Electric had a return on equity of 16.08% and a net margin of 8.93%. The firm's quarterly revenue was up 11.5% on a year-over-year basis. The utilities provider reported $0.44 earnings per share for the quarter, topping the Thomson Reuters' consensus estimate of $0.38 by $0.06. On average, equities research analysts forecast that General Electric Co. will post $1.49 EPS for the current year. Inv Counselors Of Maryland Limited Liability invested in 0.05% or 37,309 shares.

The dividend allocation will be $4.2 billion for 2018, pushing it from above 100% of free cash flow to 60% to 70%, and the dividend yield from 4.7% to 2.3%. Finally, Franklin Resources Inc. raised its stake in shares of General Electric by 43.8% in the second quarter.

General Electric Company is a global digital industrial company. Davenport And Co Limited Co reported 0% of its portfolio in General Electric Company (NYSE:GE).

The dividend debate reached a fever pitch ahead of GE's Q3 earnings report. The stock of Portland General Electric Company (NYSE:POR) has "Sell" rating given on Monday, June 6 by Goldman Sachs.

Wall Street inched higher as concern about USA tax reform plans and a drop in General Electric shares weighed on sentiment at the tail-end of a better-than-expected quarterly earnings season.

"Many investors own GE for the dividend, so it's disappointing, but it's also not very surprising that they had to cut", said Allianz Global Investor's Burns McKinney in a email Monday, as the company's share price slid 7.2%. Goldman Sachs Group Inc. set a $28.00 price target on shares of General Electric and gave the company a "neutral" rating in a report on Friday, September 30th. The stock of General Electric Company (NYSE:GE) has "Buy" rating given on Monday, October 19 by Stifel Nicolaus.

Among 9 analysts covering Diebold Inc (NYSE:DBD), 4 have Buy rating, 0 Sell and 5 Hold. If the $17.84 price target is reached, the company will be worth $11.65B less.

More news for Portland General Electric Company (NYSE:POR) were recently published by: Bizjournals.com, which released: "Portland General Electric eyes spending up to $100M on energy storage" on October 27, 2017. The insider IMMELT JEFFREY R bought 100,000 shares worth $2.81M. Following the completion of the transaction, the chairman now directly owns 2,248,688 shares in the company, valued at approximately $65,751,637.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Franklin Resources Inc. now owns 78,024,403 shares of the conglomerate's stock worth $2,107,438,000 after purchasing an additional 23,764,129 shares during the last quarter.

Related:

Comments


Other news