Sunday , March 7 2021

General electrical stocks continue to fall, on track for the fourth straight downturn



General Electric's share is now down by more than 50% so far this year, and is about levels most affected during the financial crisis.

General Electric's share is now down by more than 50% so far this year, and is about levels most affected during the financial crisis.

Photo:

John Minchillo / Associated Press

General Electric
Co.

GIVE -4.89%

shares stumbled further Monday when investors continued to question the value of the single-phase industrial conglomerate.

Shares dropped 6.1% to $ 8.06, on track for their fourth straight day with decreases. The stock has fallen almost 30% since the company presented plans two weeks ago to lower the dividend to an ear share.

The latest picture comes after CEO Larry Culp said that the company's "close proximity" business is in the bottom of an interview with CNBC on Monday, indicating that misery for the device could continue. That activity has been plagued by problems such as losing global demand and turbine leaf failure, which has contributed to the stock swoon in recent months.

GE shares were also lowered after Friday after the analysts at JPMorgan Chase & Co. slashed its share price target at $ 6 per share, a move driven by the company's high leverage and limited available cash, disappointing earnings and the decision to lower dividends. The company last month also showed that it was the subject of a criminal accounting probe.

With the recent downturns, the stock market has now fallen by more than 50% so far this year, and is about levels that last hit the financial crisis. This is the latest sign of bleakness for GE, once the most valuable American company in the early 2000s and an original member of the Dow Jones Industrial Average. GE was removed from 30-storey Dow industrials in June.

Kate Moore, chief equity strategist at

Black stone
,

The decline of GE shares does not indicate "something worse in industrial conglomerates or the broader economy".

"Investors really see the price movement in many of these bellwether shares, but I suggest it's not likely that there will be a major contagious infection because this is a specific security issue," she added.

Write to Saumya Vaishampayan at [email protected]


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