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General Electric's stock is now down 50% so far this year and is trading around levels last hit during the financial crisis.
Photo:
John Minchillo / Associated Press
General Electric
Co.
GE -5.01%
shares tumbled further Monday as investors continue to question the value of the ounce-storied industrial conglomerate.
Shares dropped 6.1% to $ 8.06, on their fourth straight day of declines. The stock has slumped nearly 30% since the company unveiled plans two weeks ago to cut its dividend to a penny a share.
The latest slide comes after Chief Executive Larry Culp said the company's power was "getting close" to a bottom in an interview with CNBC on Monday, saying that it could continue. That business has been plagued by issues like dropping global demand and turbine blade failures, which have contributed to the stock's swoon in recent months.
GE shares also slumped Friday after analysts at JPMorgan Chase & Co. slashed their stock to $ 6 a share, a move fueled by the company's high leverage and limited cash available, disappointing results and its decision to cut its dividend. The company is a subject of a criminal accounting probe.
With the latest declines, the stock is now down 50% so far this year and is trading around levels last hit during the financial crisis. It was the latest sign of the world for GE, which was one of the most valuable American companies in the early 2000s and an original member of the Dow Jones Industrial Average. GE was removed from the 30-stock Dow industrials in June.
Kate Moore, chief equity strategist at
BlackRock
,
said GE's stock slump does not indicate "something happening in industrial conglomerates or the wider economy."
"Investors are certainly doing a lot of things in these stocks, but I think it's unlikely that this is a specific issue," she added.
-Corrie Driebusch contributed to this article.
Write to Saumya Vaishampayan at [email protected]
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