Public Sector Pension Investment Board Slashes GE Aerospace Stake by 43.7% in Q1

The Public Sector Pension Investment Board (PSPIB) has significantly reduced its holdings in GE Aerospace (NYSE: GE) during the first quarter, according to its latest filing with the U.S. Securities and Exchange Commission (SEC). The Canadian institutional investor sold 190,421 shares, representing a 43.7% decrease in its stake. Following the sale, PSPIB now owns 244,915 shares of GE Aerospace, valued at approximately $49.02 million as of the most recent SEC filing.

Other institutional investors also adjusted their positions in GE Aerospace during recent quarters. Brighton Jones LLC increased its stake by 25.3% in the fourth quarter, bringing its holdings to 12,008 shares worth $2,003,000 after buying an additional 2,421 shares. Revolve Wealth Partners LLC boosted its stake by 7.1% in the fourth quarter to hold 2,251 shares valued at $375,000. Sagespring Wealth Partners LLC initiated a new position in the fourth quarter valued at about $1,616,000. Seeds Investor LLC grew its stake by 13.3% to 1,833 shares worth $306,000, while Advisors Capital Management LLC expanded its holdings by 559.6%, now owning 20,376 shares worth $3,399,000 after purchasing an additional 17,287 shares.

Overall, hedge funds and institutional investors collectively hold 74.77% of GE Aerospace’s stock.

Several equity research firms have recently updated their outlook on GE Aerospace. Citigroup reiterated a "buy" rating and raised its price target from $227.00 to $296.00 on July 14, 2024. UBS Group increased its price target from $300.00 to $321.00 and maintained a "buy" rating on July 18, 2024. Wall Street Zen upgraded the stock from "hold" to "buy" on the same day. However, Northcoast Research downgraded the stock from "buy" to "neutral" on May 19, 2024.

GE Aerospace (NYSE: GE) has demonstrated notable strength in its stock performance and financial outlook leading up to the Paris Air Show and its scheduled Q2 earnings report. As of recent trading sessions, GE Aerospace’s shares have traded higher by up to 2.1%, with a trading high of 248.50 and last recorded at 248.02, indicating positive investor sentiment. Trading volumes have been robust, with over 1.2 million shares exchanged, although slightly below the average of approximately 5.5 million shares. Analysts from major financial institutions have expressed confidence in the company’s prospects, reflecting a general "Moderate Buy" consensus rating supported by 10 buy ratings and 2 hold ratings.

Price targets from prominent analysts underscore this optimism: UBS Group elevated their target to $216 per share, Royal Bank of Canada assigned an "outperform" rating with a $275 price target, Wells Fargo raised its target to $222, while Citigroup recently adjusted its target upwards from $227 to $296, maintaining a buy rating. Conversely, Northcoast Research issued a "neutral" rating in May, reflecting some cautious sentiment.

Financially, GE Aerospace reported strong Q1 2024 earnings on April 22, posting earnings per share (EPS) of $1.49, surpassing analyst expectations by $0.20. The company achieved a return on equity of 29.15% and net margin of 17.63%, with quarterly revenues reaching $9.94 billion, above the forecasted $9.06 billion. Expectations for the full year remain positive, with anticipated EPS of 5.4.

Providing shareholder value, GE Aerospace announced a quarterly dividend of $0.36 per share, payable on July 25, with a record date of July 7. The company’s financial stability is underpinned by a market capitalization of approximately $263.16 billion, a price-to-earnings (P/E) ratio of 38.38, and a price-to-earnings-growth (PEG) ratio of 2.98. Key liquidity ratios include a current ratio of 1.08 and a quick ratio of 0.77, with a debt-to-equity ratio of 0.90.

Strategically, GE Aerospace is benefiting from rising demand driven by the need for maintenance and refurbishment of older aircraft, further boosting profit forecasts for 2025. This trend signifies an important pivot in the aerospace sector with implications for industry players and investors alike as the market adapts to evolving aviation dynamics.

In summary, GE Aerospace emerges as a strong contender in the aerospace market with solid financial performance, favorable analyst endorsements, and strategic growth prospects, cemented by upcoming key events such as the Paris Air Show and quarterly earnings announcement.