Investors Applaud GE's (GE) Asset Sale, Buyback Plans, But Shares Not Expected to Move Over Next Few Years
- Wall Street jumps on retailer outlook hikes, ebbing Fed fears
- Broadcom (AVGO) to Acquire VMware (VMW) for Approximately $61 Billion in Cash and Stock
- Ulta Beauty Shares Surge 8% on Q1 Beat and Raise
- NVIDIA (NVDA) Falls on Downbeat Guidance, Evercore ISI Remains a Buyer as Shares Trade Near an 'Estimated Floor of $150'
- After-Hours Stock Movers 05/26: Ulta, Dell Jump on Earnings; Gap, American Eagle Sink (more...)
General Electric (NYSE: GE) shares are lower following last Friday's run higher on a new common stock buyback and real estate asset sale plan. Barron's agrees, saying that it was just about time to sell.
The report notes that GE is trading for 16 times expected FY15 earnings, which could be a rich multiple for a company that is refocusing more assets on its industrial business. Notably, United Technologies (NYSE: UTX) also trades for around the same multiple, while Honeywell (NYSE: HON) goes for about 17 times earnings expectations.
GE's multiple is also likely to come down as analysts rework expectations on the asset sale and capital allocation plans.
Many on Wall Street saw the asset sale as a positive, but don't expect much from the stock moving forward for at least the next year or two. GE Capital accounted for 57 percent of the company's earnings in 2007, slipping to 42 percent last year, and the company plans for the branch to amount to around 10 percent of earnings by 2018.
Shares of GE are down 3 percent Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Relief at the Hot Dog Stand... Costco (COST) Will Not Raise Prices
- Fanhua Inc. (FANH) Reports Q1 Revenue of $108.28M, EPS of $0.12
- Bristol-Myers Squibb (BMY) Reports Phase 2 PILOT Study Data of CAR T cell Therapy Breyanzi Shows Substantial Durable Responses
Create E-mail Alert Related CategoriesInsiders' Blog
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!