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Welcome to InvestorPlace’s General Electric (NYSE:GE) live blog, where you can find up-to-the-second insights in GE news today.
[Check back often, as this page will be updated with more GE news and insights each day the market is open.]
GE Stock Still Looks Like a Loser
[Monday, April 27, 10:44 a.m.]
- General Electric will report first-quarter earnings on April 29.
- InvestorPlace’s Mark Hake writes that GE stock still looks like a loser. He’s watching its struggling aviation business, a slew of analyst downgrades and future cash flow losses.
- So what should investors do? Hake recommends staying cautious, at least until there’s “safety” in the GE stock price.
GE Highlights April Successes in Friday Tweets
[Friday, April 24, 3:30 p.m.]
- GE stock is down 2.6% in intraday trading.
- In a series of posts on social media site Twitter (NYSE:TWTR), General Electric took some time to share its April successes on Friday. The first post showcases GE Healthcare’s virtual ICU surveillance technology. This allows doctors to check on multiple patients at one time, without risking exposure to things like Covid-19. GE originally shared the news April 16.
- The second feel-good post highlights that GE Aviation won $476 million in military contracts. These contracts cover the production of military engines and other hardware. GE also originally shared the news on April 16.
GE Healthcare: Ventilator Output Will Double by June
[Friday, April 24, 12:20 p.m.]
- GE stock is down 3.2% in intraday trading.
- In a commentary for Barron’s, GE Healthcare CEO Kieran Murphy wrote that General Electric was working to support healthcare professionals and other frontline workers. He says GE has already doubled its output of ventilators, and that it will double output once again by June.
- Murphy writes that GE Healthcare is also pursuing supply-chain innovations, including 3D printing.
Will GE Fall Behind on Its Plan to Reduce Debt?
[Friday, April 24, 10:36 p.m.]
- GE stock opened at $6.59 Friday. Shares are down 0.8% in intraday trading.
- UBS analyst Markus Mittermaier, who cut his price target on GE stock yesterday, writes that General Electric will fail to reach its debt reduction target. CEO Larry Culp was aiming to bring the ratio of net debt to EBITDA from 4.2 to below 2.5 in 2020.
- According to Mittermaier, the impact of the virus on GE will actually raise that ratio to 7.4 for the year.
Citigroup and UBS Cut Price Targets on General Electric
[Thursday, April 23, 2:51 p.m.]
- GE stock is up 2.9% in intraday trading.
- Citigroup analyst Andrew Kaplowitz maintained his “buy” rating on GE but cut his price target from $11 to $9. He says he remains confident in CEO Larry Culp but thinks pressure on earnings is inevitable due to the pandemic.
- UBS analyst Markus Mittermaier also maintained a “buy” rating and cut his price target from $12 to $9. Mittermaier says he is pricing in air travel demand returning to normal by 2024.
Young Investors Are Bullish on GE Stock
[Thursday, April 23, 1:56 p.m.]
- GE stock is up 2.3% in intraday trading.
- According to InvestorPlace Markets Analyst Luke Lango, young investors like GE stock. His data comes from a recent CNBC interview with Robinhood.
- Why are young investors so bullish on GE stock? Lango argues that although General Electric has “enormous” balance sheet risks, industrial companies are likely to improve in coming quarters. With that in mind, young investors are trying to buy the dip ahead of a big rebound.
General Electric’s Vera Silva Gets Time in the Spotlight
[Thursday, April 23, 11:50 a.m.]
- GE stock is up 3.4% in intraday trading.
- According to a company press release, Vera Silva, the chief technology officer of GE’s Grid Solutions business, will now represent GE as the vice president of innovation for T&D Europe. T&D Europe is trade association for companies in the electricity transmission and distribution equipment and services industry.
- Grid Solutions is a business within GE’s Renewable Energy unit.
- The press release also notes that Silva will be the first woman to serve on the trade association’s executive committee.
GE Enters 10-Year Contract with Idaho Wind Partners
[Wednesday, April 22, 2:57 p.m.]
- GE shares are down 0.9% in intraday trading.
- General Electric announced today that its GE Renewable Energy unit won a 10-year, full-service contract to support Idaho Wind Partners.
- GE will provide its suite of digital services, including field service management tools and performance optimization software to a collection of 11 wind farms near Twin Falls, Idaho. The 11 wind farms are home to 122 GE turbines.
GE Aviation Wins $73 Million Contract
[Wednesday, April 22, 12:15 p.m.]
- GE shares are up 0.6% in intraday trading.
- According to Thomas Gnau, a staff writer for the Dayton Daily News, General Electric’s Aviation unit won a $73 million contract from the U.S. Navy. This contract will cover generator converter units, wiring harnesses and other components for the Navy’s F-18 jets.
- This contract goes specifically to GE Aviation’s facilities in Vandalia, Ohio.
Is General Electric Racing Toward Inevitability?
[Wednesday, April 22, 10:45 p.m.]
- GE shares are up 0.4% in intraday trading.
- InvestorPlace’s Josh Enomoto writes that GE stock is racing toward inevitability, and he’s recommending that investors get out now. Declines in travel demand and plunging oil prices are combining to seriously hurt General Electric.
- Oh, don’t gamble on GE as a military play either. Enomoto thinks starting a war conflicts with President Donald Trump’s campaign promises, which is key in an election year.
Don’t Buy General Electric Stock Above $5
[Wednesday, April 22, 9:33 a.m.]
- GE shares opened at $6.60 on Wednesday.
- InvestorPlace’s Faisal Humayun likes GE stock, but he’s worried about the near term. Its major commercial airline business is taking a hit, and the company will have to delay key deleveraging plans as the pandemic weighs on its cash flow. So what’s an investor to do?
- Humayun recommends investors stay away for now. But when GE stock hits or drops below $5, he thinks it will be rather attractive.
Pence Visits GE Factory to Showcase Coronavirus Response
[Tuesday, April 21, 5:00 p.m.]
- GE stock closed down 0.56% Tuesday to a share price of $6.48.
- Vice President Mike Pence visited a GE Healthcare factory in Madison, Wisconsin today to “tout” General Electric’s ramped-up ventilator production. According to the company, it has doubled output since the beginning of the outbreak.
- GE is also partnering with Ford (NYSE:F) to design a simpler version of its ventilator. This will allow both companies to make deliveries to healthcare professionals more quickly.
Cost-Cutting Moves Make GE Stock a Buy Now
[Tuesday, April 21, 12:15 p.m.]
- GE shares are up 0.15% as of this writing.
- According to InvestorPlace’s David Moadel, analysts like JPMorgan’s Stephen Tusa are missing the point with GE stock. Moadel praises moves by CEO Larry Culp to cut costs, including staff furloughs and executive pay cuts. He thinks these moves are a “baby step” toward normalcy.
- However, Moadel says investors should be cautious. Headwinds in the commercial aviation industry could be long-lasting.
Trump Ramps Up Ventilator Spending
[Tuesday, April 21, 10:00 a.m.]
- According to reporting from Reuters, President Donald Trump pledged $2.9 billion this week to build 187,000 ventilators this year. Along with General Motors (NYSE:GM) and Ford (NYSE:F), General Electric is contracted to build ventilators in the U.S.
- Putting things in context, Reuters’ David Shepardson and Carol O’Donnell highlight that ventilators have become a key symbol of the novel coronavirus, and also of the lack of preparedness for handling such a pandemic.
- GE stock is down 1.3% as of this writing.
General Electric Stock Opens Down Tuesday Morning
[Tuesday, April 21, 9:31 a.m.]
- GE stock opened down on Tuesday by 1.7%. Shares were struggling in pre-market trading after General Electric temporarily closed a wind turbine plant in North Dakota yesterday.
GE Enters Into $15 Billion Credit Facility
[Tuesday, April 21, 8:55 a.m.]
- At the time of this writing, GE stock is lower by 1.2% in pre-market trading.
- A new U.S. Securities and Exchange Commission filing shows that General Electric has entered into a senior unsecured back-up revolving syndicated credit facility for $15 billion. According to the filing, 32 banks are involved.
- This new facility replaces one for $20 billion set to mature in May 2021.
General Electric Closes Monday Down 4.8%
[Monday, April 20, 4:01 p.m.]
- GE stock closed lower by 4.75% on Monday. The drop is likely due to news the company shuttered a wind turbine plant in North Dakota.
Motley Fool Contributor Picks Verizon Over General Electric
[Monday, April 20, 3:30 p.m.]
- Motley Fool writer Reuben Gregg Brewer, a devoted dividend investor, compared Verizon (NYSE:VZ) to General Electric (NYSE:GE) in his article, “Better Buy: General Electric vs. Verizon” that published today. He believes that Verizon is the better choice for dividend investors.
- In analyzing GE, Brewer highlights the challenges that two of GE’s primary business units — renewable energy and power — were having even before the market downturn last month. Brewer also points out that GE sold off a large piece of its healthcare business in order to pay down debt.
- “GE, meanwhile, is still struggling to turn its business around, and the environment in which it is operating is getting increasingly hostile,” Brewer notes.
Culp Pens Open Letter Addressing Coronavirus Response
[Monday, April 20, 3:20 p.m]
Contributed by Andrew Taylor
- In an open letter posted on social media site LinkedIn, General Electric (NYSE:GE) CEO Larry Culp highlighted what the company is doing in response to the coronavirus outbreak. Culp’s letter highlighted work done by the company to increase the volume of ventilators it produces, producing personal protective equipment for healthcare workers, and employing artificial intelligence to improve the department of hospital resources.
- Although the letter is largely a puff piece probably penned by Culp’s press relations team, it nonetheless provides some interesting tidbits, according to this piece from Barron’s.
GE Shutters North Dakota Wind Turbine Plant
- Shares of GE stock are down 4.5% as of this writing. The Motley Fool’s Howard Smith reported that after an outbreak of the novel coronavirus at its North Dakota wind turbine plant, General Electric has closed the facility for at least 14 days. GE says at least 110 of the plant’s 900 employees tested positive for Covid-19.
GE Stock Is Down, But Don’t Buy Just Yet
[Monday, April 20, 1:30 p.m.]
- Shares of GE stock are down 3.73% as of this writing. InvestorPlace technician Tyler Craig advises investors to stay away, writing “Any Way You Look at GE Stock, It’s Impossible to Suggest Buying Here.”
