General Electric Company (GE) Cancels Sale of Appliance Unit to Electrolux

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General Electric Company (NYSE:GE) has made headlines today by apparently calling off the sale of their appliance unit to the Sweden-based Electrolux. The transaction, which was agreed upon in September of last year, would have seen Electrolux purchase the unit from General Electric Company (NYSE:GE) for approximately $3.3 billion. The US Justice Department got in the way of the deal, saying that the combination of two of the largest appliance producers in the world would ultimately hurt consumers and would lead to higher prices.

It wasnt the government which ultimately halted the deal though. Electrolux said this morning that they had “made extensive efforts to obtain regulatory approvals, and regrets that G.E. has terminated the agreement while the court procedure is still pending.”

The stock increased 1.50% or $0.45 during the last trading session, hitting $30.48. About 2,305 shares traded hands. GE has risen 11.81% since May 4, 2015 and is uptrending. It has outperformed the S&P500 by 12.01%.

From a total of 11 analysts covering General Electric Company (NYSE:GE) stock, 7 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $54 while the lowest target price is $25.84. The mean of all analyst targets is $31.48 which is 3.28% above today’s ($30.48) stock price. General Electric Company was the topic of 20 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 30 with a “Outperform” rating. Vetr downgraded shares to a”Hold” rating and a $25.84 target share price in their report from a September 22. S&P Research maintained GE stock in a recent report from October 20 with a “Buy” rating. Deutsche Bank maintained the rating on August 25. Deutsche Bank has a “Hold” rating and a $29 price target on shares. Finally, William Blair upgraded the stock to a “Outperform” rating in a report they issued on an October 13.

The institutional sentiment decreased to 0.83 in Q2 2015. It’s down 0.20, from 1.03 in 2015Q1. The ratio dived, as 68 funds sold all their General Electric Company shares they owned while 884 reduced their positions. 140 funds bought stakes while 649 increased their total positions. Institutions now own 5.47 billion shares which is 1.52% less than the previous share count of 5.55 billion in 2015Q1.

American Asset Management Inc. holds 12.79% of its total portfolio in General Electric Company, equating to 8,204 shares. Trustco Bank Corp N Y owns 419,759 shares representing 10.79% of their total US portfolio. Moreover, Artemis Investment Management Llp has 9.85% of their total portfolio invested in the company, equating to 11.44 million shares. The France-based Natixis Asset Management has a total of 9.42% of their portfolio invested in the stock. Albion Financial Group Ut, a Utah-based fund reported 1.88 million shares owned.

General Electric Company is a diversified infrastructure and financial services company. The company has a market cap of $308.23 billion. The services and products of the Company range from aircraft engines, power generation, gas and oil production equipment, and household appliances to medical imaging, business and consumer financing and industrial products. It has 98.93 P/E ratio. The Firm operates its divisions through its eight businesses, on the markets they serve: Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances, and Lighting and GE Capital.

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