Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

General Electric Company (GE) announced on Tuesday that it would sell a part of its stake in Baker Hughes, as the US industrial conglomerate seeks to raise cash and repay debt.

General Electric shares closed higher for the second time in the past fifteen trading sessions in New York on Tuesday. It has also been the sharpest daily surge since June 26th. The stock went up 7.76% ($0.62) to $8.61, after touching an intraday high at $9.04, or a price level not seen since November 8th ($9.34).

Shares of General Electric Company have retreated 50.66% so far in 2018 compared with a 1.82% gain for the benchmark index, S&P 500 (SPX).

In 2017, General Electric’s stock plummeted 44.78%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Earlier this week, Larry Culp, GEs Chief Executive Officer, said that assets would be sold with “urgency” so that high debt could be reduced, especially after the companys shares recently hit lows unseen since March 2009 and the cost of insuring debt became the highest in six years.

As part of the agreement, another portion of General Electric’s stake will be bought back by Baker Hughes. The two companies also said that the transactions would keep General Electric’s stake in Baker Hughes at over 50%.

General Electric acquired Baker Hughes in July 2017 and, at present, it holds a 62.2% stake in the oilfield services provider.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $13.00, with a high estimate of $21.00 and a low estimate of $10.00. The median estimate represents a 50.99% upside compared to the closing price of $8.61 on November 13th.

The same media also reported that 11 out of 22 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $8.76
R1 – $9.36
R2 – $10.15
R3 – $10.75
R4 – $11.36

S1 – $7.97
S2 – $7.37
S3 – $6.58
S4 – $5.80

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Intel share price down, sees lower first-quarter salesIntel share price down, sees lower first-quarter sales Intel Corp. slashed its previous first-quarter revenue target by around $1 billion on Thursday citing lower demand for corporate personal computers.The Santa Clara, California-based chipmaker said that more businesses held back from […]
  • Crude oil trading outlook: futures steady on OPEC speculations, economic data in focusCrude oil trading outlook: futures steady on OPEC speculations, economic data in focus West Texas Intermediate traded below $75 a barrel after US crude inventories rose more than expected last week, while Brent hovered around $78 amid growing speculations OPEC may scale back its collective output. Disappointing China data and a […]
  • Smartphone demand pushes Samsung’s Q3 earnings to a recordSmartphone demand pushes Samsung’s Q3 earnings to a record Samsung has officially reported earnings for the third fiscal quarter of 2013, which break its personal best, beating its own expectations. The company announced 59.08 trillion won (roughly $55 billion) in revenue and 10.16 trillion won in […]
  • Norges Bank keeps rate intact, sees 75 bps of cuts in 2025Norges Bank keeps rate intact, sees 75 bps of cuts in 2025 The Norges Bank has kept its benchmark interest rate without change at a 16-year high of 4.5% for a fourth straight policy meeting in June, in line with market consensus.The central bank noted the policy rate would likely remain at […]
  • Forex Market: EUR/USD daily trading forecastForex Market: EUR/USD daily trading forecast Yesterday’s trade saw EUR/USD within the range of 1.0691-1.0856. The pair closed at 1.0698, losing 1.42% on a daily basis.At 8:27 GMT today EUR/USD was down 0.41% for the day to trade at 1.0652. The pair broke the first key daily and the […]
  • Forex Market: EUR/AUD daily forecastForex Market: EUR/AUD daily forecast During yesterday’s trading session EUR/AUD traded within the range of 1.4356-1.4426 and closed at 1.4364, losing 0.4% for the day.At 6:54 GMT today EUR/AUD was gaining 0.03% for the day to trade at 1.4368. The pair touched a daily high at […]