According to a statement by General Electric Company (GE) on Friday, it was dismissing workers at its power division in Schenectady, NY, in an attempt to cut costs, as net income in that business sharply decreased.
General Electric shares closed lower for a second consecutive trading session on Friday. It has also been the steepest daily loss since November 14th. The stock went down 2.24% ($0.41) to $17.88, after touching an intraday low at $17.86, or a price level not seen since November 22nd ($17.84).
In the week ended on December 3rd the shares of the industrial conglomerate lost 1.70% of their market value compared to a week ago, which marked a third consecutive period of decrease.
The stock has plummeted 2.24% so far during the current month, following a 9.28% slump in November. The latter has been a ninth consecutive month of losses.
For the entire past year, General Electric shares gained 1.44%. However, the stock has retreated 43.42% so far in 2017.
According to ABC TV affiliate News10, 75 employees have already been notified that they are being dismissed. The media cited sources inside the plant in Schenectady.
The lay-offs at the facility came as a result of a “significant decline in orders” at GE Power. According to GE, the affected workers are to receive severance as well as assistance in finding new employment.
“GE has previously announced a plan to reduce $3 billion in cost by the end of 2018”, the conglomerate said in a statement, cited by Reuters. “Those actions include, but are not limited to, employee reductions, which have been under way for many months.”
General Electric has dismissed at least 75 other employees in the state of New York so far in 2017, state records revealed.
Meanwhile, another round of lay-offs has already been announced in July. Back then General Electric said it intended to dismiss 575 employees at a railroad locomotive facility in Erie, Pennsylvania.
According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $22.00, with a high estimate of $35.00 and a low estimate of $15.00. The median estimate is a 23.04% surge compared to the closing price of $17.88 on December 1st.
The same media also reported that 8 out of 19 surveyed investment analysts had rated General Electric’s stock as “Hold”, while other 8 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:
R1 – $17.92
R2 – $17.96
R3 (Range Resistance – Sell) – $18.00
R4 (Long Breakout) – $18.11
R5 (Breakout Target 1) – $18.25
R6 (Breakout Target 2) – $18.30
S1 – $17.84
S2 – $17.80
S3 (Range Support – Buy) – $17.76
S4 (Short Breakout) – $17.65
S5 (Breakout Target 1) – $17.51
S6 (Breakout Target 2) – $17.46
By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:
Central Pivot Point – $18.11
R1 – $18.36
R2 – $18.84
R3 – $19.09
R4 – $19.34
S1 – $17.63
S2 – $17.38
S3 – $16.90
S4 – $16.42