General Electric (NYSE:GE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

According to Zacks, “Over the past three months, General Electric’s shares underperformed the industry. Weakening GE Power business remains a major cause of worry for the company. General Electric perceives that reduced new gas orders, increasing popularity of renewable energy sources, overcapacity, macroeconomic challenges and geopolitical tensions might continue to take a toll on the segment’s performance in the quarters ahead. Notably, General Electric predicts adjusted industrial free cash to be roughly $6 billion in 2018, a downward revision from $6-$7 billion expected earlier. The revision has been made mainly to account for the ongoing challenges in the company's GE Power business segment. Also, for 2018, General Electric expects adjusted earnings to come in at the lower end of the projected range of $1.00-$1.07 per share. Over the past 30 days, Zacks Consensus Estimate for the stock has remained unchanged for 2018 but has moved south for 2019.”

Several other analysts have also recently weighed in on the company. JPMorgan Chase & Co. restated a “sell” rating and set a $10.00 price target (down from $11.00) on shares of General Electric in a report on Thursday, September 20th. UBS Group reduced their price target on General Electric from $16.00 to $13.00 and set a “neutral” rating on the stock in a report on Wednesday, September 5th. Morningstar set a $15.70 price target on General Electric and gave the stock a “buy” rating in a report on Monday, August 13th. Royal Bank of Canada restated a “neutral” rating and set a $15.00 price target on shares of General Electric in a report on Wednesday, August 8th. Finally, Bank of America reduced their price target on General Electric from $17.00 to $16.00 and set a “hold” rating on the stock in a report on Friday, July 27th. Five equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $16.25.

General Electric stock opened at $11.27 on Monday. General Electric has a 12-month low of $11.22 and a 12-month high of $25.21. The company has a current ratio of 1.81, a quick ratio of 1.51 and a debt-to-equity ratio of 1.39. The stock has a market capitalization of $105.67 billion, a price-to-earnings ratio of 10.74, a price-to-earnings-growth ratio of 2.30 and a beta of 0.97.

General Electric (NYSE:GE) last released its earnings results on Friday, July 20th. The conglomerate reported $0.19 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.18 by $0.01. General Electric had a positive return on equity of 10.40% and a negative net margin of 6.59%. The firm had revenue of $30.10 billion for the quarter, compared to analysts’ expectations of $29.39 billion. During the same quarter in the previous year, the business posted $0.21 earnings per share. The business’s revenue for the quarter was up 3.5% on a year-over-year basis. equities analysts anticipate that General Electric will post 0.96 earnings per share for the current fiscal year.

In related news, Director H Lawrence Culp, Jr. bought 191,000 shares of General Electric stock in a transaction that occurred on Tuesday, July 24th. The shares were acquired at an average cost of $13.04 per share, for a total transaction of $2,490,640.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.12% of the company’s stock.

Hedge funds have recently made changes to their positions in the stock. Buckley Wealth Management LLC lifted its stake in General Electric by 1.3% in the first quarter. Buckley Wealth Management LLC now owns 272,144 shares of the conglomerate’s stock valued at $3,669,000 after buying an additional 3,575 shares during the period. Pinnacle Wealth Management Advisory Group LLC lifted its stake in General Electric by 28.1% in the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 16,411 shares of the conglomerate’s stock valued at $221,000 after buying an additional 3,600 shares during the period. Legacy Advisors LLC lifted its stake in General Electric by 16.3% in the second quarter. Legacy Advisors LLC now owns 26,145 shares of the conglomerate’s stock valued at $356,000 after buying an additional 3,669 shares during the period. Home Federal Bank of Tennessee lifted its stake in General Electric by 7.4% in the second quarter. Home Federal Bank of Tennessee now owns 53,210 shares of the conglomerate’s stock valued at $725,000 after buying an additional 3,675 shares during the period. Finally, Advisors Capital Management LLC lifted its stake in General Electric by 7.6% in the first quarter. Advisors Capital Management LLC now owns 52,750 shares of the conglomerate’s stock valued at $711,000 after buying an additional 3,714 shares during the period. Institutional investors and hedge funds own 53.69% of the company’s stock.

About General Electric

General Electric Company operates as a digital industrial company worldwide. It operates through Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, engines, generators, and high voltage equipment; and power generation services and digital solutions.

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