Stock Traders Make Significant Bets on General Electric Call Options

On Tuesday, General Electric (NYSE:GE – Get Free Report) experienced a surge in options trading activity, with traders purchasing 110,475 call options. This represents a remarkable increase of approximately 357% over the typical volume of 24,173 call options.

Analyst Ratings and Price Targets

Research firms have recently provided updates on their outlook for General Electric. Notably, Wells Fargo & Company raised their price target from $192.00 to $205.00, maintaining an “overweight” rating in a report dated July 24th. Citigroup increased its price goal for General Electric from $198.00 to $216.00 and assigned a “buy” rating on October 10th. Additionally, Deutsche Bank lifted its price target from $212.00 to $235.00, also giving a “buy” rating in a report on October 3rd. Jefferies Financial Group raised its target from $185.00 to $190.00 with a “buy” rating on June 28th. In contrast, StockNews.com downgraded General Electric from a “buy” to a “hold” rating on July 29th. In total, two analysts have rated the stock as a hold, while fourteen have given it a buy rating. MarketBeat.com reports an average rating of “Moderate Buy” and a consensus price target of $198.53.

General Electric's Stock Performance

On Wednesday, General Electric's stock opened at $176.59. With a market capitalization of $193.30 billion, its price-to-earnings (P/E) ratio stands at 57.90, and the price-to-earnings-growth (PEG) ratio is 1.86. The stock has volatility with a beta of 1.18 and shows a fifty-day simple moving average of $179.24, along with a 200-day average of $168.05. Over the previous year, the stock reached a low of $84.58 and a high of $194.80. The company's current ratio is 1.14, the quick ratio is 0.85, and the debt-to-equity ratio is 0.95.

General Electric released its latest quarterly earnings data on July 23rd, reporting earnings per share (EPS) of $1.20, which exceeded the consensus estimate of $0.99 by $0.21. The revenue for the quarter was $9.09 billion, surpassing the expectations of $8.44 billion. General Electric marked a net margin of 7.66% and a return on equity of 16.07%, reflecting a 3.9% increase in revenue year-over-year. In the same quarter last year, the company reported an EPS of $0.68. Analysts project that General Electric will achieve an EPS of 4.2 for the current fiscal year.

Dividend Announcement

Recently, General Electric announced a quarterly dividend of $0.28 per share, to be paid on October 25th, with the record date on September 26th. This results in an annualized dividend of $1.12, yielding 0.63%. The company’s current dividend payout ratio (DPR) stands at 36.72%.

Institutional Investor Activity

Institutional investors have been active in buying and selling shares of General Electric. Notably, Newport Trust Company LLC acquired a new stake in General Electric valued at $2.61 billion during the second quarter. Capital World Investors dramatically increased their stake by 2,818.1% in the first quarter, now holding 12,749,560 shares worth approximately $2.24 billion after acquiring an additional 12,312,648 shares. Capital International Investors raised its stake by 9.9%, now owning over 59 million shares valued at around $10.37 billion after acquiring 5,309,543 additional shares. Meanwhile, the Canada Pension Plan Investment Board boosted its holdings by 221.6% during the first quarter, owning over 7 million shares worth about $1.25 billion. Massachusetts Financial Services Co. MA also acquired a new stake during the second quarter, valued at $580.2 million. Overall, institutional and hedge funds collectively own about 74.77% of General Electric's stock.

About General Electric

General Electric Company, commonly referred to as GE Aerospace, is engaged in designing and manufacturing commercial and defense aircraft engines, electric power, engine components, and mechanical aircraft systems. The company provides aftermarket services to support its products in multiple regions, including the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.

Conclusion

General Electric’s large volumes of options activity and positive analyst ratings may indicate significant investor confidence in the company's future performance.

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