Taking a Fresh Look at General Electric Company (GE)

General Electric Company (GE) is an interesting player in the Industrial Goods space, with a focus on Diversified Machinery. The stock has been active on the tape, currently trading at $19.02, down from yesterday’s close by -7.17%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. General Electric Company (GE) currently trades with a market capitalization of $164.81 Billion. That value represents a market adjusting for revenues that have been growing by 14.38 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For GE, the company currently has $39.85 Billion of cash on the books, which is offset by $28.13 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-2.01 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.3 on a per share basis this quarter. Perhaps, that suggests something about why 61.16% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, General Electric Company recorded a 52-week high of $32.38. It is now trading 13.36% off that level. The stock is trading $22.94 its 50-day moving average by 3.92%. The stock carved out a 52-week low down at $19.63.

In recent action, General Electric Company (GE) has made a move of -18.58% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.32, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.17% with $8.66 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GE.

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