General Electric's inventory has now decreased by more than 50% so far this year, and is about levels that were…
John Minchillo / Associated Press
shares stumbled further Monday when investors continued to question the value of the single industrial conglomerate.
Shares dropped 6.1% to $ 8.06, on the run for their fourth straight day of downturns. 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 the company’s power business is “close” to a bottom in an interview with CNBC on Monday, indicating that misery for the device could continue. This activity has been plagued by problems such as losing global demand and turbine blade errors, which has contributed to the stock company in recent months.
GE shares also fell on Friday after analysts at JPMorgan Chase & Co. slashed its price target at $ 6 per share, a move driven by the company’s high leverage and limited available cash, disappointing earnings and its decision to reduce dividends. The company last month also revealed that it was the subject of a criminal accounting fund.
With the recent downturns, the stock market has now fallen by more than 50% so far this year, and is about levels that were last hit during 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
said GE’s stock decline does not indicate “any unfortunate happening in industrial conglomerate or the broader economy.”
“Investors really see the price movement in many of these bellwether shares, but I suggest it’s not likely to be a major emotional infection because this is a specific security issue,” she added.
-Corrie Driebusch contributed to this article.
Write to Saumya Vaishampayan at [email protected]