Shares of General Electric (NYSE:GE) stock are now trading in the triple digits as of Monday after the company announced some major news this past weekend.
After proposing a 1-for-8 reverse stock split back in March, General Electric officially made it happen last Friday. Now, shares are trading above $100 after closing at $12.95 on Jul. 30.
So, what details do GE stock investors need to know? Let’s take a look at some of the important items from the stock split.
- According to the original announcement, this split will “decrease the number of shares outstanding to a number more typical of companies with comparable market capitalization.”
- For example, Honeywell International (NASDAQ:HON) also has a triple-digit stock price at more than $230 per share today.
- Of course, GE stock is now above that same triple-digit threshold. But it will need to perform to get to the same level as peers like HON stock.
- According to Barron’s, reverse stock splits “typically trouble investors. They are a sign that things are going wrong.”
- However, with the size and reputation of General Electric, this doesn’t appear to be the case for GE stock.
- Prior to the moves last week, GE stock was up 16% year-to-date (YTD) as of Jul. 16.
GE stock was down around 2% as of Monday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.