Bornite Capital Management trimmed its position in GE Aerospace by 62.3% in the first quarter, selling 132,400 shares and ending the period with 80,000 shares valued at $16.0 million. Despite the reduction, GE Aerospace still represents approximately 4.1% of Bornite’s portfolio and remains its 13th-largest holding.
Institutional activity around the stock has been robust. During the first quarter, GAMMA Investing LLC expanded its position by 23,611.7% to 5,066,000 shares (about $1.01 billion). In the fourth quarter, Janus Henderson Group PLC increased its stake by 87.7% to 3,582,000 shares, and Nuveen Asset Management lifted its holdings by 32.1% to 3,454,000 shares. The Canada Pension Plan Investment Board grew its position by 11.5% to 7,551,000 shares in the fourth quarter. Vanguard Group, the largest holder, modestly raised its stake by 0.8% to 90.5 million shares in the first quarter. In total, 74.77% of GE Aerospace’s float is owned by institutions.
Analysts remain broadly constructive. UBS raised its price target to $321 with a buy rating on July 18, while Citigroup lifted its target to $296 and reiterated a buy on July 14. Barclays increased its target to $295 with an overweight rating on July 23, and Royal Bank of Canada moved its target to $300 with an outperform rating on July 18. Northcoast Research shifted to neutral on May 19. Overall, the stock holds a Moderate Buy consensus, with one hold and eleven buy ratings, and an average price target of $232.92.
Shares recently traded at $274.95, near a 52-week high of $277.18 and well above the 52-week low of $159.36. The company’s market capitalization stands at $291.57 billion. Key valuation and risk metrics include a P/E of 38.35, PEG of 2.96, and beta of 1.44. Liquidity and leverage metrics include a current ratio of 1.04, quick ratio of 0.73, and debt-to-equity of 0.88. The 50-day and 200-day moving averages are $255.31 and $221.88, respectively.
In its latest quarterly results on July 17, GE Aerospace delivered EPS of $1.66, topping the $1.43 consensus, on revenue of $10.15 billion versus the $9.49 billion expected. Revenue grew 21.2% year over year, with EPS up from $1.20 in the same period last year. Return on equity reached 31.32%, and net margin was 18.64%. Analysts currently project full-year EPS of 5.4.
The board declared a quarterly dividend of $0.36 per share, paid on July 25 to shareholders of record as of July 7. On an annualized basis, the dividend is $1.44 per share, implying a yield of 0.5% and a payout ratio of 20.08%.
GE Aerospace operates through two segments: Commercial Engines and Services, and Defense and Propulsion Technologies, offering jet and turboprop engines and integrated systems across commercial, military, business, and general aviation.
Commentary and context
– The mix of significant institutional accumulation alongside selective profit-taking by Bornite suggests active portfolio rebalancing rather than a broad shift in sentiment. High institutional ownership often reflects confidence in a company’s fundamentals and long-term strategy.
– Strong revenue growth, a sizable EPS beat, and robust returns on capital support the recent strength in the share price. Several price target hikes indicate optimism around continued performance.
– The current share price sits above the average published target, which could imply that expectations are elevated; future performance and guidance will be key to sustaining the valuation.
Positive angle
GE Aerospace is executing well, with accelerating revenue, expanding profitability, and continued shareholder returns through its dividend. Broad institutional support and multiple analyst upgrades underscore a constructive outlook.
Summary
– Bornite Capital cut its GE Aerospace stake by 62.3% but kept it as a top-15 holding.
– Institutions, including GAMMA, Janus Henderson, Nuveen, CPP Investments, and Vanguard, increased positions in recent quarters.
– Analysts largely maintain buy/overweight views with raised targets up to $321.
– Shares are near a 52-week high; valuation reflects strong execution.
– Latest quarter beat on revenue and EPS; dividend maintained with a conservative payout ratio.