| GE Capital Real Estate Offloads Assets Worth Nearly $10B - Analyst Blog | |
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Since it revealed its milestone intentions to sell off chunks of GE Capital in April, the industry bellwether has been busy offloading holdings, including several overseas bank stakes, while at the same time attempting to expand its industrial holdings. GE had announced that it will shed over four-fifths of its finance arm — the seventh-largest in the country — over the next three years, drawing an end to the era when it relied on the freewheeling business’ financial engineering skills to generate half of its profits. GE even plans to negotiate with regulators about withdrawing GE Capital’s designation of a systemically important financial institution. Predominantly, the funds generated from the sale of those assets will be channelled back to shareholders through a $50 billion share buyback program, the second biggest in history. In fact, GE surmises that counting the full withdrawal of funds generated from its retail finance business Synchrony, there might even be potential for more than $90 billion to be returned to shareholders in the next three years. Even after such ambitious plans to enhance shareholder wealth, GE expects to have enough money left over for ‘bolt-on’ acquisitions worth $3 to $5 billion annually to boost the core businesses, and a higher dividend from 2017 onwards. The radical restructuring of the world’s fourth-most valuable company as it reclaims its industrial identity has created quite a stir in the company’s otherwise flaccid shares. Since April, the company’s shares have soared almost 10% relative to the S&P 500’s 2% return, after lagging the benchmark index poorly over the last couple of years. GE’s CEO, Jeff Immelt asserted that the low interest rates currently prevalent in the economy, coupled with abundant liquidity in the corporate market present a great climate for asset sell-off, and the conglomerate is exploiting a “window of opportunity” to sell while these conditions persist. GE presently holds a Zacks Rank #3 (Hold). A better-ranked stock that looks promising in the industry is Luxfer Holdings PLC LXFR, sporting a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BLACKSTONE GRP (BX): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report LUXFER HOLDINGS (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Wells Fargo est une société d’exploration minière basée aux Etats-Unis D'Amerique. Wells Fargo est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 304,5 milliards US$ (285,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 03 juillet 1997 à 10,01 US$, et son plus haut niveau récent le 23 avril 2024 à 60,94 US$. Wells Fargo possède 4 997 319 680 actions en circulation. |