Why General Electric Company Stock Slumped 9.3% in November
General Electric Company (NYSE: GE) stock fell 9.3% in November, compounding a disappointing year for investors. In a nutshell, GE's investor update on Nov. 13 failed to demonstrate that a quick fix was in the cards for the company's problems. In addition, a 50% dividend cut would have disappointed any income-seeking investors holding the stock.
Investors were given several reasons to sell the stock. In particular, GE's power-segment problems were revealed to be deeper than many had anticipated, and the overall near-term earnings and cash flow guidance was disappointing -- management's guidance for full-year 2018 adjusted EPS in the range of $1 to $1.07 implies a decline from analyst estimates for $1.07 in 2017. Moreover, if it wasn't for debt issuance and the prospect of asset sales, GE's new, and reduced, dividend is arguably poorly covered.
Growing usage of renewable energy brings a mix of good news and bad news for General Electric Company. Image source: Chris New for GE Reports.
Source: Fool.com
General Electric Co. Stock
With 35 Buy predictions and not a single Sell prediction General Electric Co. is an absolute favorite of our community.
With a target price of 162 € there is a slightly positive potential of 9.83% for General Electric Co. compared to the current price of 147.5 €.
