Royal Bank of Canada Reiterates Outperform Rating for GE Vernova

On December 14, 2024, the Royal Bank of Canada reaffirmed its outperform rating for shares of GE Vernova (NYSE:GEV). According to their latest research note, the brokerage set a price target of $376.00 for the stock.

Several other analysts have also expressed their opinions on GE Vernova. For instance, Raymond James downgraded the company from an “outperform” to a “market perform” rating on October 2. Meanwhile, Morgan Stanley increased their price target from $301.00 to $367.00 while maintaining an “overweight” rating on November 15. TD Cowen initiated coverage of GE Vernova on December 5, assigning a “buy” rating and setting a price target of $400.00.

HSBC, on October 4, reaffirmed a “hold” rating but raised their price target to $255.00 from a previous $240.00. Additionally, on October 21, Deutsche Bank began coverage with a “buy” rating and a target price of $354.00. So far, the consensus among analysts stands as follows: seven analysts recommend holding the stock, twenty suggest a buy, and one gives it a strong buy rating. Collectively, this results in a consensus rating of “Moderate Buy” with an average price target of $314.35 according to MarketBeat data.

Stock Performance Overview

As of Wednesday, GE Vernova's shares opened at $332.01. The stock has a fifty-day simple moving average of $312.53 and a two-hundred-day moving average at $232.46. Looking at the past year, GE Vernova recorded a low of $115.00 and a high of $357.09.

Dividend Announcement

Moreover, GE Vernova recently announced a quarterly dividend scheduled for payment on January 28. Shareholders on record as of December 20 will receive a dividend of $0.25 per share, which translates into an annual dividend of $1.00 and a yield of 0.30%.

In a significant move, the company’s board also authorized a stock buyback program on December 10. This plan allows the repurchase of up to $6.00 billion in shares, which accounts for approximately 6.7% of its stock through open market purchases. Stock buybacks often indicate that the company’s leadership believes the shares are undervalued.

Institutional Investments in GE Vernova

Recently, numerous large institutional investors have adjusted their stakes in GE Vernova. Lord Abbett & Co. LLC has acquired a new position in the company valued at $25.12 million. Retirement Systems of Alabama increased its stakes by 2.4% during the third quarter, owning 61,894 shares worth $15.78 million after purchasing an additional 1,433 shares. Franklin Resources Inc. also enhanced its position by 3.7% this same quarter, totaling 1,978,691 shares valued at $533.26 million following the acquisition of 71,067 more shares.

Tidal Investments LLC raised its holdings by 5.4%, now owning 7,271 shares valued at $1.85 million after acquiring an additional 374 shares. Lastly, Optimist Retirement Group LLC has purchased a new stake valued around $249,000 within the same timeframe.

About GE Vernova

GE Vernova LLC is engaged in energy generation and operates across three main segments: Power, Wind, and Electrification. The Power segment focuses on generating and selling electricity through diverse energy sources, including hydro, gas, nuclear, and steam power. The Wind segment is involved in the manufacturing and sale of wind turbine blades, while the Electrification segment offers grid solutions, power conversion, solar, and storage solutions.

Conclusion

Given the varying ratings from different analysts and the recent financial activities surrounding GE Vernova, investors have a broad spectrum of insights to consider as they evaluate the company’s future performance.

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