Stock-Split Watch: GE Vernova Trades Above $890 With a $176 Billion Backlog. Is a Split Next?
Key PointsGE Vernova is one of the more expensive companies on a per-share basis.
GE Vernova (GEV) is trading at a high price of $890 per share, up from recent lows, and investors are speculating if a stock split may be on the horizon. The company's market cap is $237 billion, a significant drop from its peak. However, GE Vernova's business is thriving, with third-quarter orders increasing by 96% year-over-year and a backlog of $197 billion.
Free cash flow grew to $5.4 billion, and the Power division led with $22 billion in orders, a 178% year-over-year rise. Despite the high share price, the company hasn't split its stock since separating from its parent, General Electric, in 2024. Stock splits typically reduce the price per share, making it more attractive to investors, and are not a guarantee of future stock performance.
GE Vernova's management has recently increased its share repurchase authorization to $20 billion, focusing more on buybacks. While a split could bring the price down to more appealing levels, it's not a reason to buy, but the business fundamentals still make GE Vernova an appealing investment.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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