Hawaii-based wealth advisory Cadinha & Co. disclosed a purchase of 59,106 General Electric shares for an estimated $16.2 million during the third quarter in an SEC filing last Thursday.
What Happened
According to an SEC filing, Cadinha increased its position in General Electric (GE +2.85%) by 59,106 shares during the third quarter. The estimated transaction value, based on the average market price over the quarter, was approximately $16.2 million. The fund reported holding 97,280 shares with a market value of $29.3 million at the end of the quarter.
What Else to Know
General Electric now accounts for nearly 4% of Cadinha's 13F reportable assets under management as of September 30.
Top holdings after the filing:
- BRK-B: $38.9 million (5.3% of AUM)
- IAU: $38.5 million (5.2% of AUM)
- COST: $35.7 million (4.8% of AUM)
- MSFT: $35.2 million (4.8% of AUM)
- GOOGL: $34.9 million (4.7% of AUM)
As of Thursday, shares of General Electric were priced at $302.68, representing a one-year gain of 56.0% and well outperforming the S&P 500's roughly 15% gain over the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $41.6 billion |
| Net Income (TTM) | $7.8 billion |
| Dividend Yield | 0.5% |
| Price (as of Thursday morning) | $302.68 |
Company Snapshot
- GE Aerospace provides jet and turboprop engines, integrated aircraft systems, and aftermarket services across commercial and defense aviation markets.
- The company generates revenue through the sale of jet and turboprop engines, as well as integrated systems, for commercial, military, business, and general aviation aircraft.
- It serves global commercial airlines, aircraft manufacturers, defense agencies, and business aviation customers.
GE Aerospace is a leading global provider of aircraft propulsion systems and integrated technologies. The company operates through its Commercial Engines & Services and Defense & Propulsion Technologies segments, focusing on both commercial and defense aviation.
Foolish Take
Cadinha & Co.’s bolstered GE Aerospace stake comes as the General Electric successor’s stock surges to new highs this year. On Tuesday, CEO H. Lawrence Culp, Jr. touted the firm’s “exceptional” third-quarter earnings, with free cash flow conversion more than doubling and 26% growth in revenues. The firm also raised full-year revenue and profit expectations, saying it now projects adjusted revenue growth in the high-teens and full-year adjusted earnings per share of up to $6.20.
For long-term investors, Cadinha’s move reinforces confidence in GE’s transformation story—one centered on durable cash generation, strong pricing power, and expanding global aviation demand. The purchase also fits Cadinha’s broader strategy of owning cash-flow-rich companies alongside core holdings like Berkshire Hathaway, Costco, and Microsoft. With aerospace spending trending higher, GE’s restructured balance sheet and focused operating model offer investors exposure to one of the most resilient growth stories in U.S. industry.
Glossary
13F reportable AUM: Assets under management that investment managers must report quarterly to the SEC on Form 13F.
Alpha: A measure of an investment's performance compared to a benchmark, showing excess return above the benchmark.
Dividend Yield: Annual dividends paid by a company as a percentage of its current share price.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Aftermarket services: Support and maintenance provided for products after their initial sale, such as repairs or spare parts.
Integrated aircraft systems: Combined technologies and components that work together to operate and control an aircraft.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Commercial Engines & Services: A business segment focused on manufacturing and servicing engines for commercial aviation customers.
Defense & Propulsion Technologies: A business segment providing propulsion systems and technologies for military and defense aviation markets.
