Why It's a Great Time to Buy GE HealthCare Stock

GE HealthCare Technologies (NASDAQ: GEHC) has had a great run since its spinoff from General Electric in January. But the recent announcement of a 25 million share offering has caused the stock to dip in price. That could be an excellent buying opportunity for investors. Let's see why.

Following the spinoff, GE still retained a 19.9% stake in GE HealthCare, or 90.3 million shares. That's a sizable amount, and institutional investors (mutual funds, hedge funds, pension funds, insurance funds, etc.) are likely monitoring the matter. It's expected that GE would look to liquidate its position at the right price to reduce its debt load, and that could lead to a stock overhang that needs to clear. 

On June 5, GE HealthCare announced a secondary placing of 25 million shares from GE's 90.3 million shares. As noted in the GE HealthCare release:

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Source Fool.com