General Electric shares fall the most in 103 months on Monday on disappointing earnings guidance, as company slashes dividend

November 14, 2017 8:40 am

Shares of General Electric Company (GE) plummeted at a daily rate unseen since April 2009 on Monday, following the announcement of disappointing 2018 earnings guidance and plans to reduce dividend by 50% to $0.12 per share.

General Electric shares closed lower for the 13th time in the past 16 trading sessions on Monday. It has also been the steepest daily loss since April 20th 2009. The stock went down 7.17% ($1.47) to $19.02, after touching an intraday low at $18.76, or a price level not seen since June 6th 2012 ($18.31).

In the week ended on November 12th the shares of the industrial conglomerate added 1.74% to their market value compared to a week ago, which marked the first gain in three weeks.

The stock has neutralized earlier advance and is now down 5.65% so far during the current month, following a 16.63% slump in October. The latter has been an eighth consecutive monthly loss and also the largest one in more than two years.

For the entire past year, General Electric shares gained 1.44%. However, the stock has retreated 39.81% so far in 2017.

General Electric now projects its full-year 2018 adjusted earnings per share to fall within the range of $1.00 to $1.11. In comparison, analysts on average had expected earnings of $1.18 per share.

The company has been undergoing a multitude of changes, with CEO John Flannery’s reorganization attempt being aimed at boosting profitability. Last Friday he announced companywide job cuts.

Meanwhile, Boston Business Journal reported that personnel lay-offs had already been initiated at GE’s interim corporate headquarters in Boston, but it still remains uncertain how many employees have so far been affected.

GE has already announced plans to reduce costs by $3 billion by the end of 2018.

In October, the company disclosed the pending leave of three executives, including its Chief Financial Officer, Jeffrey S. Bornstein.

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $24.00, with a high estimate of $35.00 and a low estimate of $17.00. The median estimate is a 26.18% surge compared to the closing price of $19.02 on November 13th.

The same media also reported that 8 out of 20 surveyed investment analysts had rated General Electric’s stock as “Hold”, while other 8 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the General Electric stock are presented as follows:

R1 – $19.16
R2 – $19.30
R3 (Range Resistance – Sell) – $19.43
R4 (Long Breakout) – $19.85
R5 (Breakout Target 1) – $20.33
R6 (Breakout Target 2) – $20.54

S1 – $18.88
S2 – $18.75
S3 (Range Support – Buy) – $18.61
S4 (Short Breakout) – $18.20
S5 (Breakout Target 1) – $17.71
S6 (Breakout Target 2) – $17.50

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $20.34
R1 – $20.83
R2 – $21.17
R3 – $21.66
R4 – $22.15

S1 – $20.00
S2 – $19.51
S3 – $19.17
S4 – $18.83

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