4. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 51
General Electric Company (NYSE:GE) is an American industrial company operating in Europe, China, Asia, the Americas, the Middle East, and Africa via Power, Renewable Energy, Aviation, and Healthcare segments. As China is one of the leading exporters of industrial machinery, demand for General Electric Company (NYSE:GE)’s hi-tech equipment and machines will increase once China fails to meet supply deadlines amid a slowdown. General Electric Company (NYSE:GE) exceeded Q2 2022 EPS and revenue estimates.
Deutsche Bank analyst Nicole DeBlase on July 27 maintained a Buy recommendation on General Electric Company (NYSE:GE) but lowered the firm’s price target on the shares to $88 from $90. The analyst said he was a “bit surprised” that the stock traded up in light of the Q2 earnings report, as she expected Wall Street to focus more on the 2022/2023 free cash flow guidance cut rather than the stronger than predicted Q2 results.
According to Insider Monkey’s data, 51 hedge funds were bullish on General Electric Company (NYSE:GE) at the conclusion of Q1 2022, compared to 57 funds in the last quarter. Boykin Curry’s Eagle Capital Management is the biggest stakeholder of the company, with 13.3 million shares worth $1.2 billion.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q3 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated it to more discounted companies.”
