General Electric Company (NYSE:GE) announced it has completed the sale of GE Appliances to Qingdao Haier Co., Ltd. (“Haier”) for $5.6 billion, which includes an approximate $200 million increase from the originally announced sale price to account for increased working capital in the business.
“The sale of GE Appliances is another step in the company’s portfolio transformation and its mission to become the world’s leading Digital Industry company,” said GE Chairman and CEO Jeff Immelt. “By successfully acquiring Alstom’s power and grid assets, splitting off Synchrony Financial and by continuing to execute the GE Capital exit strategy ahead of plan, the team is making GE a simpler, more competitive company.”
The sale will generate an after-tax gain of approximately $0.20 per share. For the year, we expect gains to be offset by restructuring. (Original Source)
Shares of General Electric closed today at $30.12, up $0.18 or 0.60%. GE has a 1-year high of $32.05 and a 1-year low of $19.37. The stock’s 50-day moving average is $30.28 and its 200-day moving average is $29.88.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on May 19, Oppenheimer analyst Christopher Glynn reiterated a Hold rating on GE. Separately, on May 12, J.P. Morgan’s Stephen Tusa initiated coverage with a Sell rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Glynn and Stephen Tusa have a total average return of 15.3% and 4.3% respectively. Glynn has a success rate of 73.7% and is ranked #1 out of 3894 analysts, while Tusa has a success rate of 66.1% and is ranked #875.
Overall, one research analyst has rated the stock with a Sell rating, 4 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 $31.50 which is 5% above where the stock opened today.