Published - September 13th, 2023 @ 3:20 PM (GMT+2)
GE's Strategic Divestment and Rising Institutional Investments
General Electric has been making strategic financial moves to bolster its capital and focus on core sectors. The company recently announced the sale of its $2.44 billion stake in aircraft leasing giant AerCap, following a previous sale of 18 million shares in March. Concurrently, Rockefeller Capital Management increased its stake in GE by 33.1% in Q1 2023, owning about 0.08% of the conglomerate worth $78,736,000. Other institutional investors such as Sei Investments and Prudential PLC have also expanded their holdings in GE.
Aerospace: The New Focus
GE is transforming into a pure aerospace company by 2024. The aerospace segment, often referred to as the company's "crown jewel," has seen an increase in demand, reporting double-digit growth in orders, revenue, and operating profit.
Stock Performance Highlights
- Current Price: $115.00
- Market Cap: $125.16B
- YTD Growth: +73.43%
- P/E Ratio: 13.66
- Dividend Yield: 0.28%
Analysts' Optimism
Morgan Stanley recently raised its price target on GE stock to $125 from $122, maintaining an overweight rating. The firm considers GE as one of the best defensive names in the current macroeconomic environment.
Conclusion
General Electric has been on a strategic path, focusing on aerospace while divesting in non-core sectors like aircraft leasing. With significant institutional investments and a strong focus on aerospace, GE is well-positioned for future growth. The stock has shown remarkable performance, making it a compelling investment option in 2023.
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