General Electric shares plunged 8.8 percent, briefly trading below $10 a share, on Tuesday after multiple Wall Street analysts warned clients that new CEO Larry Culp's cut to the quarterly dividend to just a penny a share may be just the beginning of a slow and difficult process.
GE shares fell as low as $9.87 on Tuesday, their lowest levels since hitting $9.80 a share in April 2009 during the financial crisis. The stock recovered some to close at $10.18 in what was still its worst single day of trading since March 2009.
Along with a dividend cut, the company:
- took a $22 billion charge in the third quarter related to acquisitions in its power business
- said the SEC and the DOJ were widening their probes into the company's accounting practices because of that charge
- reported adjusted earnings and revenue for the third quarter that missed Wall Street expectations and a GAAP loss of $2.63 a share in the period
- said it was splitting its power business into two separate units
- reported a 25 percent increase in profits from last year for the aviation unit
- said it expects to retain about $3.9 billion in cash a year as a result of the dividend cut
Here's a wrap of what major Wall Street analysts had to say about GE's many announcements: