General Electric Company (NYSE:GE) announced that today it has completed the sale of its remaining 20% stake in the Hyundai Capital Services (HCS) joint venture through a structured asset-backed security, representing aggregate ending net investment (ENI) of approximately $0.8 billion as at the end of the third quarter of 2016.
“As we continue to sell most of the assets of GE Capital, we are working with our joint venture partners such as Hyundai Capital to find solutions that work best for all parties,” said Rich Laxer, GE Capital Chairman and CEO. “Hyundai has been a strong partner for us over the last 12 years with the joint venture providing tremendous value for customers,” he added.
As previously announced, GE has embarked on a strategy to create a simpler, more valuable company by reducing the size of its financial businesses and by focusing on continued investment and growth in its world-class industrial businesses. GE will retain the financing businesses that relate directly to GE’s industrial businesses.
Since the April 2015 announcement, GE Capital has signed agreements for the sale of approximately $193 billion of businesses and has closed approximately $175 billion of those transactions. GE Capital plans to have largely completed the process of selling approximately $200 billion of businesses by the end of 2016 and believes it is on track to deliver approximately $35 billion of dividends to GE under this plan. (Original Source)
Shares of General Electric are currently trading at $28.82, down $0.07 or -0.24%. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $30.15 and its 200-day moving average is $30.48.
On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on October 14, UBS analyst Shannon O’Callaghan maintained a Buy rating on GE, with a price target of $34, which represents a potential upside of 18% from where the stock is currently trading. Separately, on October 11, RBC’s Deane Dray maintained a Buy rating on the stock and has a price target of $36.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Shannon O’Callaghan and Deane Dray have a total average return of 13.1% and 2.5% respectively. O’Callaghan has a success rate of 73% and is ranked #112 out of 4180 analysts, while Dray has a success rate of 61% and is ranked #1619.
Overall, 2 research analysts have rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 6 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 $32.17 which is 11% above where the stock closed last Friday.