General Electric (NYSE:GE) stock is taking a beating on Wednesday after announcing plans for a reverse stock split that investors aren’t happy about.
GE is recommending that shareholders of its stock approve a proposed 1-for-8 reverse stock split. The company says that this would line up its number of shares to other companies with similar market capitalizations.
GE says that the approval would allow it to enact a stock split anytime within a year after its annual shareholder meeting on May 4, 2021. It also plans to reveal more details about the plan in a filing later this week.
We know that shareholders of GE stock clearly aren’t happy about the reverse stock split news, but is it a good or bad thing? Let’s check out some of the top quotes on the matter below.
$GE suggesting a 8-1 reverse stock split hurts my brain. For many years I have always said reverse splits is the sign of death 💀 for a stock.
I trust Larry Culp, so I am holding. But find this odd to say the least.
— Frugal Mogul 🏡 (@RealFrugalMogul) March 10, 2021
Well it really doesnt matter too much, just optics and how people view the company
People seem to think stocks that are $100 are higher quality than stocks at $13
— Stock Market News (@StockMKTNewz) March 10, 2021
$GE provides its 2021 outlook, preps 1-for-8 reverse stock split. A lot of moving parts, but that's not surprising to anyone following GE over the years. There a probably easier value plays to be had. https://t.co/E2l24EQ14o pic.twitter.com/glW22kPnet
— Larry Dignan (@ldignan) March 10, 2021
— Dr. ValueTrap (@DrValueTrap) March 10, 2021
— Steve Grasso (@grassosteve) March 10, 2021
$GE I think it's safe to stay shareholders are NOT pleased.
— Nathan Michaud (@InvestorsLive) March 10, 2021
GE stock was seeing incredibly heavy trading on Wednesday following the reverse stock split news. As of this writing, more than 133 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is about 80 million shares.
Investors that want to know more about what GE has been up to of late can check out the following content from InvestorPlace.
- AER Stock: The Big GE Deal Talk That Has AerCap Shares Flying
- If General Electric Stock Has Upside, Use It to Take Profit
- General Electric’s Power and Renewables Units Are Surging
- General Electric Looks Terrific As Its Free Cash Flow Soars
- Why General Electric Stock Has a ‘Green’ Future
GE stock was down 5.6% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.