Stock Traders Buy Large Volume of General Electric Call Options

On Tuesday, General Electric (NYSE:GE – Get Free Report) experienced a significant surge in options trading activity. Traders purchased a remarkable total of 110,475 call options for the company. This figure marks an increase of approximately 357% when compared to the usual trading volume, which typically sees around 24,173 call options being traded.

Analysts Set New Price Targets

Several research firms have recently updated their price targets for General Electric. Wells Fargo & Company raised their price target from $192.00 to $205.00 and noted an “overweight” rating in their report dated July 24th. Citigroup increased their target from $198.00 to $216.00 while also assigning a “buy” rating on October 10th. Additionally, Deutsche Bank Aktiengesellschaft raised their price target from $212.00 to $235.00 on October 3rd, maintaining a “buy” rating. Jefferies Financial Group adjusted their price target from $185.00 to $190.00, also giving a “buy” rating back on June 28th. However, StockNews.com changed their rating from “buy” to “hold” on July 29th. Currently, two analysts have given a hold rating, while fourteen have recommended the stock as a buy. According to MarketBeat.com, the average rating for the stock is “Moderate Buy,” with a consensus price target of $198.53.

General Electric Price Performance

As of Wednesday, General Electric's stock opened at $176.59. The company boasts a market cap of $193.30 billion and holds a price-to-earnings (P/E) ratio of 57.90. Its price-to-earnings-growth (PEG) ratio stands at 1.86, along with a beta of 1.18. The fifty-day simple moving average is $179.24, while the 200-day simple moving average is $168.05. In the past year, the company has seen a low of $84.58 and a high of $194.80. Financial metrics indicate a current ratio of 1.14, quick ratio of 0.85, and debt-to-equity ratio of 0.95.

General Electric announced its latest quarterly earnings on July 23rd, reporting earnings per share (EPS) of $1.20, which surpassed the consensus estimate of $0.99 by $0.21. The company generated revenue of $9.09 billion in that quarter, exceeding analysts’ expectations of $8.44 billion. General Electric's net margin was 7.66% and it achieved a return on equity of 16.07%. Year-over-year, revenues increased by 3.9% compared to the same period last year, during which the company earned $0.68 EPS. Analysts project General Electric will report 4.2 EPS for the current fiscal year.

General Electric Dividend Announcement

The company also announced a quarterly dividend that is scheduled to be paid on October 25th. Shareholders who were on record as of September 26th will receive a dividend of $0.28 per share. This translates to an annualized dividend of $1.12 and a dividend yield of 0.63%. General Electric's dividend payout ratio (DPR) is currently 36.72%.

Institutional Investors Weigh In On General Electric

Several hedge funds and institutional investors have been active in buying and selling shares of General Electric recently. For example, Newport Trust Company LLC acquired a new stake worth $2,613,332,000 during the second quarter. Capital World Investors significantly increased its stake by 2,818.1% in the first quarter, now owning over 12.7 million shares worth approximately $2.24 billion after acquiring an additional 12.3 million shares. Capital International Investors also raised its stake by 9.9%, holding approximately 59.1 million shares valued at about $10.37 billion. Canada Pension Plan Investment Board increased its stake by 221.6%, now possessing 7.12 million shares worth $1.25 billion. Massachusetts Financial Services Co. MA also acquired a new stake during the second quarter valued at $580.2 million. Institutional investors currently own approximately 74.77% of General Electric's shares.

About General Electric

General Electric Company, operating under the name GE Aerospace, specializes in designing and manufacturing commercial and defense aircraft engines, integrated engine components, as well as electric power and mechanical aircraft systems. Additionally, the company provides aftermarket services to support its products, with operations spanning across the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.

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