The members of General Electric Company (NYSE:GE)’s two largest unions have voted to approve new four-year national labor contracts with GE. Union officials informed GE that voting by members of the IUE-CWA and the United Electrical, Radio and Machine Workers of America (UE) was completed today, and that the national agreements have been ratified.
GE Vice President Greg Capito said, “This ‘yes’ vote is good news for GE, the unions, our employees and ultimately, our customers. We are gratified that our represented employees have solidly backed this contract that provides an excellent GE job package, while helping the company to continue to succeed.”
Union leaders and GE reached tentative agreements on the labor contracts on June 21st after three weeks of negotiations. The unions’ bargaining committees and Conference Boards then endorsed the contracts, and the contracts were thereafter approved by membership votes in IUE-CWA and UE locals.
Approximately 16,500 union-represented employees are covered by the approved contracts. The IUE-CWA represents about 9,300 GE employees and its labor agreement covers numerous GE locations including Louisville, KY (GE Appliances); Lynn, MA (GE Aviation); and Schenectady, NY (GE Power & Water). The UE represents about 3,480 employees and its labor agreement includes Erie, PA (GE Transportation) as its largest facility.
Terms of the new contracts have been offered to the UAW, IAM, IBEW and other unions that have local contracts with GE. Agreements have been ratified by many of these local units to date. (Original Source)
Shares of General Electric opened today at $26.57 . GE has a 1-year high of $28.68 and a 1-year low of $23.41. The stock’s 50-day moving average is $27.14 and its 200-day moving average is $25.62.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on June 26, William Blair analyst Nicholas Heymann reiterated a Hold rating on GE, with a price target of $30, which represents a potential upside of 12.9% from where the stock is currently trading. Separately, on June 18, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $29.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and John G. Inch have a total average return of -1.5% and 9.3% respectively. Heymann has a success rate of 37.5% and is ranked #2781 out of 3684 analysts, while Inch has a success rate of 76.2% and is ranked #1097.
In total, 3 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $33.00 which is 24.2% above where the stock opened today.