General Motors (NYSE:GM) Trades 1.7% Higher – Time to Buy?

VaselineOctober 4, 2024

0 5 minutes read

Shares of General Motors ( NYSE:GM – Get your free report ) ( TSE:GMM.U ) rose 1.7% on Friday. The stock traded as high as $46.15 and last traded at $45.75. About 2,503,594 shares were traded mid-day, down 84% from the average daily volume of 15,221,653 shares. Shares previously closed at $44.98.

Analysts on Wall Street are forecasting an increase

A number of research analysts recently commented on GM shares. StockNews.com lowered shares of General Motors from a “buy” rating to a “hold” rating in a report on Wednesday, July 24th. Sanford C. Bernstein cut shares of General Motors from an “outperform” rating to a “market perform” rating and set a $53.00 target price on the stock. in a research report on Monday, September 23rd. Wedbush reiterated an “outperform” rating and set a $55.00 target price on shares of General Motors in a report on Wednesday, July 24th. UBS Group lifted their price objective on General Motors from $61.00 to $64.00 and gave the company a “buy” rating in a report on Wednesday, July 10th. Finally, JPMorgan Chase & Co. boosted their target price on General Motors from $60.00 to $61.00 and gave the stock an “overweight” rating in a report on Wednesday, July 24th. Four research analysts have rated the stock with a sell rating, six have assigned a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, General Motors currently has a consensus rating of “Hold” and an average price target of $55.47.

Check out our latest report on GM

General Motors trading up 1.6%

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The firm has a 50-day moving average of $45.88 and a 200-day moving average of $45.61. The company has a market cap of $52.12 billion, a P/E ratio of 5.59, a price-to-earnings-growth ratio of 0.56 and a beta of 1.42. The company has a current ratio of 1.18, a quick ratio of 0.99, and a debt-to-equity ratio of 1.23.

General Motors (NYSE:GM – Get Your Free Report ) (TSE:GMM.U) last released its earnings results on Tuesday, July 23rd. The automaker reported $3.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.67 by $0.39. The company had revenue of $47.97 billion for the quarter, compared to the consensus estimate of $45.13 billion. General Motors had a net margin of 6.22% and a return on equity of 15.77%. General Motors’s quarterly revenue was up 7.2% compared to the same quarter last year. In the same quarter last year, the company earned $1.91 EPS. On average, analysts anticipate that General Motors will post 9.95 earnings per share for the current fiscal year.

General Motors announces dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 19th. Investors of record on Friday, September 6th were given a $0.12 dividend. This represents a dividend of $0.48 on an annualized basis and a yield of 1.05%. The ex-dividend date was Friday, September 6. General Motors’ payout ratio is 5.87%.

General Motors announced that its board has approved a stock buyback plan on Tuesday, June 11th that permits the company to repurchase $6.00 billion in shares. This buyback authorization allows the automaker to buy up to 10.8% of its shares through open market purchases. Stock buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Insider trading at General Motors

In other General Motors news, CFO Paul A. Jacobson purchased 25,000 shares of the company’s stock in a transaction dated Friday, July 26th. The shares were bought at an average cost of $44.11 per share, with a total value of $1,102,750.00. Following the completion of the transaction, the chief financial officer now directly owns 261,872 shares in the company, valued at approximately $11,551,173.92. The trade was a 0.00 % increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed via this link. In other news, EVP Rory Harvey sold 12,795 shares of the stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $49.02, for a total value of $627,210.90. Following the completion of the sale, the executive vice president now owns 8,513 shares in the company, valued at $417,307.26. This represents a 0.00 % decrease in ownership of the shares. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Paul A. Jacobson acquired 25,000 shares of the company’s stock in a transaction that occurred on Friday, July 26th. The stock was purchased at an average price of $44.11 per share, for a total transaction of $1,102,750.00. Following the completion of the purchase, the chief financial officer now owns 261,872 shares of the company’s stock, valued at $11,551,173.92. The trade was a 0.00 % increase in their position. Disclosure for this purchase can be found here. 0.72% of shares are owned by insiders.

Hedge funds affect General Motors

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Capital World Investors boosted its holdings in General Motors by 14.6% in the first quarter. Capital World Investors now owns 48,767,573 shares of the auto maker’s stock worth $2,211,609,000 after purchasing an additional 6,201,777 shares during the last quarter. Putnam Investments LLC grew its position in General Motors by 16.8% in the fourth quarter. Putnam Investments LLC now owns 20,237,820 shares of the auto maker’s stock worth $726,942,000 after purchasing an additional 2,905,689 shares in the last quarter. Hotchkis & Wiley Capital Management LLC lifted its position in shares of General Motors by 21.9% during the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 18,097,486 shares of the auto maker’s stock valued at $650,062,000 after which bought an additional 3,247,050 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of General Motors by 1.1% in the second quarter. Bank of New York Mellon Corp now owns 12,951,561 shares of the auto maker’s stock worth $601,730,000 after acquiring an additional 135,717 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in General Motors by 9.2% in the second quarter. Dimensional Fund Advisors LP now owns 12,922,021 shares of the auto maker’s stock worth $600,291,000 after acquiring an additional 1,091,137 shares during the period. Hedge funds and other institutional investors own 92.67% of the company’s shares.

About General Motors

(Get a free report)

General Motors Company designs, builds and sells trucks, crossovers, cars and auto parts; and offers services and software-enabled subscriptions worldwide. The company operates through the GM North America, GM International, Cruise and GM Financial segments. It mainly markets its vehicles under the Buick, Cadillac, Chevrolet, GMC, Baojun and Wuling brands.