As technology progresses, older technologies naturally go by the wayside. While this has been a long time coming, this morning General Electric Company (NYSE:GE) announced that they will be phasing out CFL bulbs over the next year in order to make way for the future of LED lighting.
“Now is the right time to transition from CFL to LED,” said John Strainic, chief operating officer of consumer and conventional lighting at GE Lighting. “There are so many choices that a consumer has for one socket in their home that it’s overwhelming. This will help simplify that.”
Despite this move General Electric Company (NYSE:GE) will continue offering their incadescent and halogen bulbs, so there will still be inefficient lighting supplied by the company. With that said, the price of LEDs bulbs have dropped substantially over the last several years, making them oftentimes the better choice for lighting anyway. The energy savings for such bulbs, and their longevity easily pay for themselves over the long run, while making our planet greener and cleaner.
The stock is down 1.72% or $0.5 following the news, hitting $28.6 per share. Approximately 3.19M shares traded hands. GE shares have risen 7.62% since June 25, 2015 and are currently uptrending. It has outperformed the S&P500 by 16.49%.
From a total of 12 analysts covering General Electric Company (NYSE:GE) stock, 8 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 67% 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 $31.89 which is 11.50% above today’s ($28.6) stock price. General Electric Company was the topic of 21 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on December 23 with a “Buy” rating. William Blair upgraded shares to a”Outperform” rating and a $32 target share price in their report from an October 13. Credit Suisse maintained GE stock in a recent report from November 23 with a “Outperform” rating. Vetr downgraded the rating on September 22. Vetr has a “Hold” rating and a $25.84 price target on shares. Finally, Stifel Nicolaus maintained the stock with a “Buy” rating in a report they issued on an October 19.
The institutional sentiment increased to 0.93 in Q2 2015. It’s up 0.10, from 0.83 in 2015Q2. The ratio improved, as 80 funds sold all their General Electric Company shares they owned while 815 reduced their positions. 87 funds bought stakes while 744 increased their total positions. Institutions now own 5.63 billion shares which is 2.96% more than the previous share count of 5.47 billion in 2015Q2.
Trian Fund Management L.P. holds 19.5% of its total portfolio in General Electric Company, equating to 90.57 million shares. Trustco Bank Corp N Y owns 416,366 shares representing 11.15% of their total US portfolio. Moreover, Artemis Investment Management Llp has 8.96% of their total portfolio invested in the company, equating to 12.04 million shares. The Utah-based Albion Financial Group Ut has a total of 8.56% of their portfolio invested in the stock. Raiff Partners Inc, a New York-based fund reported 115,000 shares owned.
General Electric Company is a diversified infrastructure and financial services company. The company has a market cap of $289.57 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 207.64 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.