General Electric opened at $105 per share after the General Electric reverse stock division suggested earlier this year. It went into effect this morning.
After the announcement of the reverse split in March, CEO Larry Culp told Barron’s that he was willing GE’s stock share prices count to be more similar to its peers. As an example, Honeywell and Eaton show triple-digit stock prices.
The reverse split multiplied the stock price by eight times. Also it divided its shares by eight, which lowered the count to 1.1B shares.
Modestly outgaining the 18% and 15% respective gains of the S&P 500 and Dow Jones Average, GE shares are more than 20% YTD.
While proposing the move, the company’s board of directors discussed about the issue. They said that the reverse split affected GE’s shares, which leaded to several other companies with similar market capitalization.
General Electric’s market capitalization stays unchanged at $113.9 billion, and shares will continue to trade under GE’s ticker symbol after the reverse split.
Last week, General Electric reported revenue and earnings that outpaced Wall Street forecasts. On revenue of $18.4 billion, it earned an adjusted 6 cents per share, compared with the 4 cents and $19 billion that analysts were expecting.
GE increased its industrial free cash flow calculation between $3.6 billion and $6 billion, which is a higher range of $2.6 billion to $4.6 billion.
Still, GE suggested that it is not safe to the inflationary pressures impacting several other businesses. The company plans to increase prices and effectively source materials as part of its plans to offset higher costs.
CEO Larry Culp continues to drive the company in a restructuring. As of Monday afternoon`s information, GE stock was down nearly 2%.
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