General Electric (GE) stock got a boost today after remaining on a downward trajectory since the release of its second-quarter results on July 31. Yesterday, GE announced that GE Renewable Energy had been selected by Partners Group and CWP as the wind turbine supplier for the 244-megawatt Bango wind farm in New South Wales, Australia. The project will entail the use of 46 of GE’s Cypress Onshore wind platforms. The project will mark GE’s first Cypress-equipped wind farm in Australia and the largest in the world. Construction will start shortly, and the farm is expected to be fully operational by 2021.
GE’s Cypress platform
Cypress is the most powerful and efficient wind turbine in operation for GE. This platform has confirmed orders from Germany, Turkey, and Australia. After its latest order from Australia, GE expects to see further interest in the Cypress platform in the market.
GE Renewable Energy
Steve Oswald, head of GE Renewable Energy Onshore Wind in Australia, said in a press release, “With 1 GW of installed wind capacity and another 600 MW under construction here, GE remains deeply committed to Australia’s energy future, and with the Cypress platform we’re ensuring that we are bringing the very latest technology to this market.”
GE execs’ share purchases signal a vote of confidence
Another reason why GE stock may be rising is because its CEO, Lawrence Culp, purchased over 331,000 shares yesterday. Its lead director, Thomas Horton, also bought more than 55,000 shares. Yahoo Finance reported that the executives made these purchases to signal confidence in GE’s turnaround plan. This vote of confidence in the plan also boosted investors’ confidence in the stock.
GE’s slump since its second-quarter earnings
Today, at 10:30 AM ET, GE stock was up 5.5%. This performance stands in sharp contrast to the stock’s fall of 13% since its second-quarter earnings results. While GE’s results were better than expected on both the revenue and earnings fronts, most analysts were unimpressed with its outlook. Due to the company’s impressive cash flow performance during its second-quarter results, GE raised its full-year guidance for industrial free cash flow. According to JPMorgan’s (JPM) estimates, however, GE could report a significant fall in free cash flow in 2019.
GE’s recent fall has wiped away some of its YTD (year-to-date) gains, but the company is still up 17% YTD. The rise still marks a decent outperformance compared to the rise of 14.2% in the Dow Jones Industrial Average Index (DIA) in the same period.