The 1-for-8 reverse split, which was approved by shareholders at the company’s annual meeting in May, reduces the number of shares from approximately 8.8 billion to 1.1 billion.
|GE||GENERAL ELECTRIC CO.||103.80||+0.84||+0.82%|
The reverse split reduces the number of GE’s shares outstanding "to a number more typical of companies with comparable market capitalization," the company’s board of directors said when proposing the move.
Following the reverse split, General Electric’s market capitalization remains unchanged at $113.8 billion and shares will continue to trade under the ticker symbol GE.
General Electric last week reported earnings and revenue that exceeded Wall Street forecasts. The conglomerate earned an adjusted 5 cents per share on revenue of $18.3 billion, compared with the 3 cents and $18 billion that analysts were expecting.
Looking ahead, GE raised its industrial free cash flow forecast to between $3.5 billion and $5 billion, up from a range of $2.5 billion to $4.5 billion.
Still, GE warned that it is not immune to the inflationary pressures that are impacting a number of other businesses. The company plans to raise prices and more effectively source parts and materials as part of its efforts to offset higher costs.
CEO Larry Culp, who joined General Electric in 2018, continues to steer the company through a restructuring.
Culp has sold off a number of assets in order to streamline the company’s business after shares lost nearly 80% of their value from mid-2016 through late-2018.
GE shares have gained 16% since Culp took over at GE in October 2018 and are up 16% this year.