GE HealthCare announces secondary offering of 10M shares

CHICAGO - GE HealthCare (NASDAQ:GEHC) Technologies Inc. (NASDAQ:GEHC), a prominent medical technology and diagnostics company, has initiated a secondary underwritten public offering of 10 million shares of its common stock. The shares in question are not being sold by GE HealthCare itself, which means the company will not be receiving any proceeds from this transaction.

Prior to the completion of the offering, GE Aerospace, a General Electric Company (NYSE:GE), will carry out a debt-for-equity exchange with Morgan Stanley Bank, N.A., and Morgan Stanley Senior Funding, Inc., which are affiliates of Morgan Stanley & Co. LLC. Morgan Stanley & Co. LLC will then act as the selling stockholder by offering the shares to underwriters. In addition, the selling stockholder has provided the underwriters with the option to purchase an additional 1.5 million shares of GE HealthCare's common stock before September 30, 2024.

Morgan Stanley and Citigroup are leading the initiative as the joint book-running managers for the offering. The offering is being made through a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), which includes a prospectus and other documents providing detailed information about GE HealthCare and this offering. Potential investors are encouraged to read these materials, which are available on the SEC's EDGAR service or directly from Morgan Stanley & Co. LLC and Citigroup.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the securities, and the sale will not take place in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

GE HealthCare is known for its dedication to improving healthcare through its range of medical technologies, pharmaceutical diagnostics, and digital solutions. The company, with a history spanning over 125 years and a business valued at $19.6 billion, employs approximately 51,000 people worldwide.

The press release also contains forward-looking statements regarding the potential outcome and timing of the offering. These statements are based on current management plans and expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may affect the offering and the company's future performance are detailed in the company's SEC filings, including its Form S-3 filed on February 15, 2024, and its Form 10-K, along with subsequent filings.

The information in this article is based on a press release statement from GE HealthCare Technologies Inc.

In other recent news, GE HealthCare Technologies Inc. has seen several significant developments. The company recently issued $1 billion in senior unsecured notes, with an interest rate of 4.8% due in 2029. On the earnings front, GE HealthCare reported revenues of $4.84 billion and earnings per share (EPS) of $1.00 for its second quarter, nearly matching Wall Street expectations. This performance was largely driven by strong results in the Pharmaceutical Diagnostics segment and robust demand in the U.S., resulting in a 3% growth in orders.

In addition, GE HealthCare's End-tidal Control software demonstrated effectiveness in delivering inhaled anesthesia in a recent study. The software achieved targeted end-tidal anesthetic concentrations within 5% of the set value 98% of the time, significantly outperforming manual control. The software also showed potential in reducing anesthetic agent usage, leading to lower greenhouse gas emissions and costs.

Analysts from JPMorgan and Piper Sandler have also weighed in on the company's prospects. JPMorgan initiated coverage on GE HealthCare stock with a Neutral rating and a price target of $90.00, highlighting the company's strong position in the medical imaging market and substantial capital backlog. Meanwhile, Piper Sandler raised the stock's price target from $92.00 to $95.00, maintaining an Overweight rating, following the company's second-quarter earnings report.

Despite some market headwinds, particularly in China, GE HealthCare managed to report modest organic revenue growth and a 3% increase in orders for the second quarter of 2024. The company maintained its EPS guidance for the year, raised its guidance for adjusted earnings before interest and taxes (EBIT) margin expansion, but lowered its full-year 2024 organic revenue growth guidance to 1-2% due to temporary market headwinds in China. These are the recent developments in GE HealthCare Technologies' business operations.

InvestingPro Insights

As GE HealthCare Technologies Inc. (NASDAQ:GEHC) navigates through its secondary public offering, insights from InvestingPro provide a deeper look into the company's financial health and market performance. GE HealthCare, a key player in the Healthcare Equipment & Supplies industry, is currently trading near its 52-week high, reflecting investor confidence in its market position and future prospects.

An important metric to consider is the company's Price to Earnings (P/E) Ratio, which stands at 24.55. This ratio suggests that the market has positive expectations of the company's earnings potential, a sentiment that is echoed by analysts who predict GE HealthCare will be profitable this year. Additionally, the company has demonstrated financial stability with a Gross Profit Margin of 40.96% over the last twelve months as of Q2 2024, indicating efficient management and a strong market position.

InvestingPro Tips highlight that GE HealthCare generally trades with low price volatility, offering a degree of stability for investors. Moreover, 11 analysts have revised their earnings downwards for the upcoming period, which may be a point of consideration for potential investors. It's worth noting that this is just a snapshot of the comprehensive analysis available, and there are numerous additional tips listed on InvestingPro for those seeking a more detailed outlook on GE HealthCare's performance.

For investors interested in the long-term value of their holdings, GE HealthCare's commitment to innovation and its solid market cap of $39.82 billion USD suggest a robust foundation for future growth. As the company moves forward with its offering, these factors may play a crucial role in shaping investor sentiment and the stock's trajectory.

For a more in-depth analysis and additional InvestingPro Tips, interested parties can visit https://www.investing.com/pro/GEHC.

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