General Electric sets the Reverse Stock Split 1 date for August 8 to 2

General Electric (GE) – Get a report said on Friday it would complete its scheduled one-for-eight stock split on July 30, with shares trading on an adjusted basis starting August 2.

GE unveiled the plans to split in early May which it said “would reduce the number of shares outstanding” to a more typical number of companies with comparable market capitalization “. This followed a 2021 financial update that said repeated industrial earnings would grow “organically in the low-single-digit range” while profits are expected to be between 15 and 25 cents per share. Industrial free cash flow , GE said, is expected to be between $ 2.5 billion and $ 4.5 billion.

“GE has divested a number of companies over the past few years, including almost all of GE Capital, without any corresponding adjustment to reduce the number of our shares,” said CDO Carolina Dybeck. “The reverse stock split will better align GE’s number of outstanding shares with companies of our size and scope. It also marks another step in GE’s transformation to become a more focused, simpler and stronger high-tech industrial company.

General Electric shares fell 1.5% in significant market volume at the start of Friday to change hands at $ 12.79 each, a move that reduces the share’s gain since the start of the year at about 19%.

GE posted higher-than-expected first-quarter profit of 3 cents per share in late April, as revenue jumped 16.6% to $ 17.1 billion, but refrained from raising its forecast of profits for the full year amid the continued blow in its aviation business from the Coronavirus pandemic.

Last month, Citigroup analyst Andrew Kaplowitz set a price target of $ 17 on GE, along with a restored buy rating, amid what he said was evidence of improvements in the market. ‘entire business portfolio under CEO Larry’ Culp’s turnaround plans that could trigger “significant upside” in GE shares.

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