GE SLASHES QUARTERLY DIVIDEND TO 1 CENT PER SHARE, STOCK SINKS
General Electric is currently trading at 11.22-higher by 2% as compared to the previous closing. In Pre-market trading on Tuesday, the stock was traded as low as 5.56% down on yesterday’s close. The stock has cut some of its earlier loss after the opening bell.
General Electric reported its Q3 earnings before the market opened on Tuesday. The company reported adjusted EPS of 14 cents, 6 cents below the market estimates. Revenue was also below the market expectation in the first quarterly report since new CEO Larry Culp took over. On a GAAP basis, the company lost $2.63 a share in the quarter.
GE also slashed its quarterly dividend to just a penny per share from 12 cents per share starting in 2019. This was the second dividend cut in a year.
GE also announced that it will divide its ailing power business into two units. It took a $22 billion noncash charge in the third-quarter related to acquisitions made in the power business.
The company also said that the SEC was expanding the scope of its ongoing accounting investigation of the company to include the goodwill charge.
On the technical front, the RSI is currently at 37.94% and suggests that the market can move in the upward direction. The current price is below the MA5. The MACD has also generated a selling signal as the fast line is below the slow line and both are below zero.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT SELL AT 11.35 TAKE PROFIT AT 11.00 STOP LOSS AT 11.53