Unusual Trading Activity in General Electric Call Options

On Tuesday, General Electric (NYSE:GE – Get Free Report) experienced an extraordinary spike in options trading. Investors purchased 110,475 call options for the company, which marks a staggering increase of about 357% when compared to the average trading volume of 24,173 call options.

Analysts Adjust Price Targets

Recent evaluations from various research firms have influenced the outlook for General Electric. For instance, Wells Fargo & Company raised its price target for GE shares from $192.00 to $205.00, assigning an “overweight” rating in a report published on July 24th. Similarly, Citigroup increased its target from $198.00 to $216.00 and labeled the stock as a “buy” in a report on October 10th. Furthermore, Deutsche Bank Aktiengesellschaft elevated its price target from $212.00 to $235.00, also giving it a “buy” rating in a report released on October 3rd. Jefferies Financial Group backed GE with a price target rise from $185.00 to $190.00, maintaining a “buy” rating on June 28th. However, StockNews.com adjusted its stance by downgrading the stock from a “buy” to a “hold” rating on July 29th. Out of the analysts covering the stock, two have a hold rating while fourteen consider it a buy. According to MarketBeat.com, the consensus rating for General Electric is “Moderate Buy” with an average price target of $198.53.

Overview of General Electric's Price Performance

As of Wednesday, General Electric stock opened at $176.59. The company has a significant market capitalization of $193.30 billion, with a P/E ratio of 57.90 and a price-to-earnings-growth (PEG) ratio of 1.86. The stock has been trading with a fifty-day simple moving average of $179.24 and a 200-day average of $168.05. Over the past year, GE has seen a low of $84.58 and a high of $194.80. Financial ratios show a current ratio of 1.14, a quick ratio of 0.85, and a debt-to-equity ratio of 0.95.

General Electric reported its quarterly earnings on July 23rd, revealing an earnings per share (EPS) of $1.20, which surpassed the expected $0.99 by $0.21. The company's revenue for the quarter totaled $9.09 billion, exceeding analysts' forecasts of $8.44 billion, with a net margin of 7.66% and a return on equity of 16.07%. Notably, revenue grew by 3.9% year-over-year, compared to the previous year's EPS of $0.68. Analysts anticipate that General Electric will report an EPS of 4.2 for the current fiscal year.

General Electric Dividend Information

The company has announced a quarterly dividend set to be distributed on October 25th. Shareholders who were on record as of September 26th will receive a dividend of $0.28 per share. This dividend represents an annualized total of $1.12, corresponding to a dividend yield of 0.63%. General Electric maintains a dividend payout ratio (DPR) of approximately 36.72%.

Institutional Investors and Their Impact

Several institutional investors have recently made significant moves concerning GE shares. Newport Trust Company LLC established a new stake in General Electric worth $2,613,332,000 in the second quarter. In the first quarter, Capital World Investors dramatically increased its stake by 2,818.1%, now holding 12,749,560 shares valued at $2,237,930,000 after acquiring an additional 12,312,648 shares. Capital International Investors also raised its stake by 9.9%, now owning 59,100,643 shares worth approximately $10,373,936,000 after obtaining 5,309,543 additional shares. Canada Pension Plan Investment Board increased its stake by 221.6%, holding 7,121,741 shares valued at $1,250,079,000, while Massachusetts Financial Services Co. MA added a new stake worth $580,200,000. Currently, 74.77% of General Electric shares are held by institutional investors and hedge funds.

About General Electric

General Electric Company, commonly referred to as GE Aerospace, specializes in designing and manufacturing commercial and military aircraft engines, along with integrated engine components and electric power systems. The company also provides aftermarket services to enhance product support. GE operates in diverse regions including the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.

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