How to buy General Electric shares | $6.25
Own General Electric shares in just a few minutes.
General Electric Company is a specialty industrial machinery business with stocks listed in the US. General Electric shares (GE) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$6.25 – a decrease of 7.41% over the previous week.
How to buy shares in General Electric
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for General Electric. Find the share by name or ticker symbol: GE. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until General Electric reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$6.25, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of General Electric, depending on your broker.
- Check in on your investment. Congratulations, you own a part of General Electric. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- General Electric key stats
- Compare share trading platforms
- Is General Electric stock a buy or sell?
- General Electric performance over time
- Can I short General Electric shares?
- Is General Electric suitable for ethical investing?
- Are General Electric shares over-valued?
- General Electric's financials
- How volatile are General Electric shares?
- Does General Electric pay a dividend?
- Have General Electric shares ever split?
- Other common questions
How has coronavirus impacted General Electric's share price?
Since the stock market crash in March caused by coronavirus, General Electric's share price has had significant negative movement.
Its last market close was US$6.25, which is 48.98% down on its pre-crash value of US$12.25 and 5.93% up on the lowest point reached during the March crash when the shares fell as low as US$5.9.
If you had bought US$1,000 worth of General Electric shares at the start of February 2020, those shares would have been worth US$498.39 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$509.81.
General Electric share priceUse our graph to track the performance of GE stocks over time.
General Electric shares at a glance
|Latest market close||USD$6.25|
|52-week range||USD$5.48 - USD$13.26|
|50-day moving average||USD$6.4209|
|200-day moving average||USD$6.8387|
|Dividend yield||USD$0.04 (0.57%)|
|Earnings per share (TTM)||USD$-2.161|
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Is it a good time to buy General Electric stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
General Electric price performance over time
|1 week (2020-09-12)||N/A|
|1 month (2020-08-21)||-0.95%|
|3 months (2020-06-23)||-10.71%|
|6 months (2020-03-23)||2.29%|
|1 year (2019-09-20)||-33.30%|
|2 years (2018-09-21)||-48.64%|
|3 years (2017-09-21)||-74.75%|
|5 years (2015-09-21)||-75.09%|
Is General Electric under- or over-valued?
Valuing General Electric stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of General Electric's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
General Electric's P/E ratio
General Electric's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, General Electric shares trade at around 19x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
General Electric's PEG ratio
General Electric's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.8713. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into General Electric's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
General Electric's EBITDA
General Electric's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$8.7 billion (£6.8 billion).
The EBITDA is a measure of a General Electric's overall financial performance and is widely used to measure a its profitability.
General Electric financials
|Revenue TTM||US$87.9 billion|
|Operating margin TTM||3.34%|
|Gross profit TTM||US$18.8 billion|
|Return on assets TTM||0.64%|
|Return on equity TTM||8.37%|
|Market capitalisation||US$60.2 billion|
TTM: trailing 12 months
Shorting General Electric shares
There are currently 83.2 million General Electric shares held short by investors – that's known as General Electric's "short interest". This figure is 7.8% down from 90.3 million last month.
There are a few different ways that this level of interest in shorting General Electric shares can be evaluated.
General Electric's "short interest ratio" (SIR)
General Electric's "short interest ratio" (SIR) is the quantity of General Electric shares currently shorted divided by the average quantity of General Electric shares traded daily (recently around 77.8 million). General Electric's SIR currently stands at 1.07. In other words for every 100,000 General Electric shares traded daily on the market, roughly 1070 shares are currently held short.
However General Electric's short interest can also be evaluated against the total number of General Electric shares, or, against the total number of tradable General Electric shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case General Electric's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 General Electric shares in existence, roughly 10 shares are currently held short) or 0.0096% of the tradable shares (for every 100,000 tradable General Electric shares, roughly 10 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against General Electric.
Find out more about how you can short General Electric stock.
General Electric's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like General Electric.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
General Electric's total ESG risk score
Total ESG risk: 49.84
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and General Electric's overall score of 49.84 (as at 07/31/2020) is pretty weak – landing it in it in the 98th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like General Electric is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
General Electric's environmental score
Environmental score: 16.69/100
General Electric's environmental score of 16.69 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that General Electric is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
General Electric's social score
Social score: 22.75/100
General Electric's social score of 22.75 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that General Electric is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
General Electric's governance score
Governance score: 15.4/100
General Electric's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that General Electric is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
General Electric's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. General Electric scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that General Electric hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||49.84|
|Total ESG percentile||97.92|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||3|
General Electric share dividends
Dividend payout ratio: 10.53% of net profits
Recently General Electric has paid out, on average, around 10.53% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.57% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), General Electric shareholders could enjoy a 0.57% return on their shares, in the form of dividend payments. In General Electric's case, that would currently equate to about $0.04 per share.
While General Electric's payout ratio might seem low, this can signify that General Electric is investing more in its future growth.
General Electric's most recent dividend payout was on 25 October 2020. The latest dividend was paid out to all shareholders who bought their shares by 24 September 2020 (the "ex-dividend date").
Have General Electric's shares ever split?
General Electric's shares were split on a 104:100 basis on 25 February 2019. So if you had owned 100 shares the day before before the split, the next day you'd have owned 104 shares. This wouldn't directly have changed the overall worth of your General Electric shares – just the quantity. However, indirectly, the new 3.8% lower share price could have impacted the market appetite for General Electric shares which in turn could have impacted General Electric's share price.
General Electric share price volatility
Over the last 12 months, General Electric's shares have ranged in value from as little as US$5.48 up to US$13.26. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while General Electric's is 0.9247. This would suggest that General Electric's shares are less volatile than average (for this exchange).
General Electric overview
General Electric Company operates as a high-tech industrial company in the United States, Europe, Asia, the Americas, the Middle East, and Africa. It operates through Power, Renewable Energy, Aviation, Healthcare, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and power generation services. The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; blades for onshore and offshore wind turbines; and high voltage equipment. The Aviation segment provides jet engines and turboprops for commercial and military airframes; maintenance, component repair, and overhaul services, as well as replacement parts; integrated digital components; and additive machines and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring, and diagnostics; drug discovery; biopharmaceutical manufacturing technologies; and performance enhancement solutions to hospitals, medical facilities, pharmaceutical and biotechnology companies, and life science research markets. The Capital segment leases and finances aircraft, aircraft engines, and helicopters; provides financial and underwriting solutions; and manages its run-off insurance operations which provides life and health insurance and reinsurance products. The company was founded in 1892 and is headquartered in Boston, Massachusetts.
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