General Electric (GE, $8.58) CEO Feels An "Urgency" To Reduce Leverage, Wants To Sell Assets
General Electric CEO Larry Culp says the company’s problems can’t be fixed overnight. "We didn't get to where we are in six weeks so it's going to take a while,” Culp told CNBC on Monday. Culp also said he feels the "urgency" to shrink the company's leverage and plans to do so through asset sales.
Under Culp’s leadership, GE's dividend has been reduced to a penny, and the conglomerate took a $22 billion accounting writedown. Culp mentioned Monday that he is planning to reduce debt further by raising cash through a possible IPO of its healthcare business, sale of its transportation unit and by exiting its Baker-Hughes oil field services business (as suggested by a CNBC article).
What possibly exacerbated the company's stock price decline was the alarming prediction made by JP Morgan Chase analyst C. Stephen Tusa, Jr. (published on Friday) that GE's stock will plummet another -33% to touch $6 by the end of 2019 owing to its mounting debt. GE CEO Culp’s statements on Monday was followed by the stock actually dropping below $8 at one point - for the first time since March 2009.
Tusa, Jr. had also mentioned that GE Capital is nearing a "tipping point" as it is saddled with leverage. Culp told CNBC that the conglomerate would be shrinking its banking arm, while also mentioning that the latter has assets matching liabilities.
Following last month’s credit rating downgrades from both Moody's Investors Services and S&P Global Ratings, GE felt pressured to retract from selling commercial paper (a short-term borrowing vehicle that is relatively less costly) and instead turn to banks for borrowing funds (which is relatively expensive).
As for GE Power, Culp indicated that the company is working hard to turn things around for that segment, as suggested by the CNBC article.
Culp hailed GE Aviation as “crown jewel” as it remains in good shape, even as the several other businesses and financials of the parent conglomerate are in deep waters at present.
Aroon Indicator for GE shows an upward move is likely
GE's Aroon Indicator triggered a bullish signal on June 17, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 368 similar instances where the Aroon Indicator showed a similar pattern. In of the 368 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 25, 2025. You may want to consider a long position or call options on GE as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on June 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.265) is normal, around the industry mean (9.760). P/E Ratio (40.598) is within average values for comparable stocks, (63.588). GE's Projected Growth (PEG Ratio) (9.511) is very high in comparison to the industry average of (2.387). Dividend Yield (0.005) settles around the average of (0.018) among similar stocks. P/S Ratio (7.057) is also within normal values, averaging (9.188).
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General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry AerospaceDefense
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