Industrial giant General Electric’s (NYSE:GE) Board has approved the spin-off of its energy business, GE Vernova. Shares of the unit are expected to begin trading on the New York Stock Exchange on April 2, under the ticker (NYSE:GEV).
Next, All GE Vernova shares will be distributed to General Electric investors. Under this move, holders of GE stock will receive one GE Vernova share for every four GE shares they hold. The record date for the distribution is set for March 19, a key deadline to keep an eye on for investors.
Following the spin-off, General Electric will operate as GE Aerospace, continuing to trade on the NYSE under the ticker GE. Further, GE Vernova and GE Aerospace will host investor days on March 6 and March 7, respectively. Key details on the growth strategies of both companies can be expected during the event.
GE Aerospace, a unit of GE, is focused on jet engines, related components, and commercial and military aircraft systems. The business has an installed base of over 44,000 commercial and 26,000 military aircraft engines. Meanwhile, GE Vernova’s interests span the power, wind, and electrification verticals.
Is GE Stock a Good Buy?
General Electric’s share price has rallied by nearly 85% over the past year. Overall, the Street has a Strong Buy consensus rating on General Electric, and the average GE price target of $159.15 implies the stock may be hovering at fair valuation levels.
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