Multinational conglomerate General Electric (NYSE:GE) has received the green light from its board of directors to spin off the healthcare unit. The approval marks a step forward in GE’s plans to become an aviation-focused company.
In November 2021, the company announced plans to split into three independent companies, with a focus on Healthcare, Aviation, and Renewable Energy, Power and Digital businesses.
The new company would be named GE HealthCare Technologies Inc. and is expected to trade on Nasdaq under the ticker “GEHC” from January 4, 2023, onwards.
Interestingly, GE will retain up to 19.9% of its stake in the new entity. Further, the remaining shares of GE HealthCare will be distributed among GE shareholders in the ratio of 1:3, i.e., one share of GE HealthCare for every three shares of GE common stock held on December 16, 2022.
GE’s healthcare unit provides digital infrastructure, data analytics, and decision support tools that help in the diagnosis, treatment, and monitoring of patients.
Is GE Stock a Buy or Sell Stock?
With eight Buy and three Hold ratings, the stock has a Moderate Buy consensus rating. On TipRanks, the average GE price forecast of $86.09 implies 0.14% upside potential to current levels. Meanwhile, the stock has lost 10.4% year to date.
