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.
GE's RSI Oscillator descending into oversold zone
The RSI Indicator for GE moved into overbought territory on March 13, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for GE crossed bullishly above the 50-day moving average on February 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 357 cases, the price rose further within the following month. The odds of a continued upward trend are .
GE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 381 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on March 05, 2026. 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 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
GE moved below its 50-day moving average on March 12, 2026 date and that indicates a change from an upward trend to a downward trend.
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 59, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 consistent 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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 (16.835) is normal, around the industry mean (9.536). P/E Ratio (37.229) is within average values for comparable stocks, (93.207). GE's Projected Growth (PEG Ratio) (5.178) is very high in comparison to the industry average of (2.086). Dividend Yield (0.005) settles around the average of (0.015) among similar stocks. P/S Ratio (6.978) is also within normal values, averaging (88.126).
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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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