Why GE HealthCare Shares Are Falling Today

GE HealthCare Technologies Inc. GEHC shares are falling in the premarket session on Friday.

Yesterday, the company launched a secondary underwritten public offering of 13 million shares of its common stock.

The public offering is available for $82.25 per share ($80.605 per share, net of underwriting discount).

Prior to the closing of the offering, General Electric Company GE is expected to exchange the GEHC Shares for indebtedness of GE held by MS Lenders, affiliates of Morgan Stanley & Co. LLC, the selling stockholder in the offering by designation of the MS Lenders.

GE HealthCare confirmed that it is not selling any shares of common stock and will not receive any proceeds from the sale of the GEHC shares in the offering or from the debt-for-equity exchange.

Shares of GE HealthCare gained a little over 20% in the last one year, marginally lower than the S&P 500’s return of over 22%.

Yesterday, HSBC analyst Sezgi Oezener initiated coverage on GE HealthCare with a forecast of $100.

The company reported fourth-quarter 2023 sales of $5.21 billion, up 5% Y/Y on an organic basis, slightly beating the consensus of $5.09 billion, driven by volume and price.

The company’s total book-to-bill was strong at 1.05 times.

GE Healthcare forecasts for the fiscal year 2024 adjusted EPS of $4.20-$4.35, up 7%-11% Y/Y.

Price Action: GEHC shares are trading lower by 2.60% to $83.40 premarket on the last check Friday.