Key Points
- GM EVP Rory Harvey sold 16,513 shares for about $1.48 million, reducing his position by 57.9% to 12,000 shares. The sale was made under a pre-arranged Rule 10b5-1 plan.
- GM’s latest quarter beat estimates narrowly, with EPS of $3.70 and revenue of $50.02 billion; revenue increased 2.9% year over year.
- The company authorized a $20 billion share repurchase program and announced a quarterly dividend of $0.18 per share. Analysts’ average rating is “Moderate Buy,” with an average price target of $101.44.
General Motors Company (NYSE:GM - Get Free Report) (TSE:GMM.U) EVP Rory Harvey sold 16,513 shares of the firm's stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $89.64, for a total transaction of $1,480,225.32. Following the sale, the executive vice president owned 12,000 shares in the company, valued at approximately $1,075,680. This trade represents a 57.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
General Motors Price Performance
Shares of General Motors stock opened at $86.24 on Friday. The stock's 50-day simple moving average is $83.35 and its 200-day simple moving average is $80.83. The company has a quick ratio of 0.94, a current ratio of 1.09 and a debt-to-equity ratio of 1.32. General Motors Company has a 52 week low of $67.06 and a 52 week high of $93.70. The company has a market capitalization of $72.75 billion, a price-to-earnings ratio of 19.78, a PEG ratio of 0.51 and a beta of 1.40.
General Motors (NYSE:GM - Get Free Report) (TSE:GMM.U) last issued its quarterly earnings results on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share for the quarter, beating analysts' consensus estimates of $3.69 by $0.01. General Motors had a net margin of 2.12% and a return on equity of 19.36%. The firm had revenue of $50.02 billion for the quarter, compared to analyst estimates of $48.78 billion. During the same period last year, the company posted $2.80 EPS. General Motors's quarterly revenue was up 2.9% compared to the same quarter last year. As a group, analysts expect that General Motors Company will post 13.37 earnings per share for the current fiscal year.
General Motors Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Friday, December 4th will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, December 4th. General Motors's dividend payout ratio (DPR) is presently 16.51%.
General Motors declared that its Board of Directors has initiated a share repurchase program on Tuesday, October 20th that permits the company to repurchase $20 billion in outstanding shares. This repurchase authorization permits the auto manufacturer to buy up to 27.5% of its stock through open market purchases. Share repurchase programs are typically a sign that the company's board believes its stock is undervalued.
Hedge Funds Weigh In On General Motors
Several large investors have recently bought and sold shares of the company. Cornerstone Wealth Management LLC grew its position in General Motors by 0.7% during the third quarter. Cornerstone Wealth Management LLC now owns 16,179 shares of the auto manufacturer's stock worth $1,246,000 after buying an additional 112 shares in the last quarter. Avior Wealth Management LLC grew its position in shares of General Motors by 2.6% in the third quarter. Avior Wealth Management LLC now owns 5,251 shares of the auto manufacturer's stock valued at $404,000 after purchasing an additional 134 shares in the last quarter. Silver Grove Financial Group Inc. lifted its position in shares of General Motors by 8.1% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 1,802 shares of the auto manufacturer's stock worth $139,000 after purchasing an additional 135 shares during the last quarter. Bogart Wealth LLC raised its holdings in General Motors by 17.0% during the second quarter. Bogart Wealth LLC now owns 949 shares of the auto manufacturer's stock worth $73,000 after purchasing an additional 138 shares during the last quarter. Finally, Richardson Financial Services Inc. boosted its position in General Motors by 75.7% during the 3rd quarter. Richardson Financial Services Inc. now owns 325 shares of the auto manufacturer's stock worth $25,000 after purchasing an additional 140 shares during the period. 92.67% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
Several research analysts recently commented on the stock. UBS Group reduced their price objective on shares of General Motors from $112.00 to $109.00 and set a "buy" rating for the company in a research note on Wednesday, October 21st. BNP Paribas Exane boosted their price objective on shares of General Motors from $102.00 to $112.00 and gave the stock an "outperform" rating in a report on Monday, August 31st. JPMorgan Chase & Co. cut their price target on General Motors from $120.00 to $110.00 and set an "overweight" rating for the company in a report on Monday, October 12th. TD Cowen reiterated a "buy" rating and set a $132.00 price target on shares of General Motors in a report on Wednesday, October 21st. Finally, Daiwa Securities Group boosted their price target on General Motors from $83.00 to $86.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $101.44.
Get Our Latest Stock Report on General Motors
General Motors News Roundup
Here are the key news stories impacting General Motors this week:
- Positive Sentiment: Higher long-term earnings forecasts: Zacks Research raised its estimates for GM’s 2027 and 2028 earnings, including its FY2028 EPS forecast to $15.10 from $12.70. Zacks Research earnings forecast
- Positive Sentiment: Domestic battery-materials exposure: GM holds a 38% stake in Nevada’s Thacker Pass lithium project, which could support its longer-term EV battery supply chain. GM’s Thacker Pass stake
- Neutral Sentiment: Executive share sale: EVP Rory Harvey sold 16,513 shares under a pre-arranged Rule 10b5-1 plan, reducing his direct holding by 57.9%. The planned nature of the transaction makes it a less clear signal about his outlook. SEC filing
- Negative Sentiment: EV braking recall: GM is recalling about 67,000 Chevrolet and Cadillac EVs over a software issue that could cause loss of braking. An over-the-air fix may limit repair costs, but the safety risk and added scrutiny are concerns. EV braking recall
- Negative Sentiment: Further recall and legal overhangs: Reports describe additional recalls affecting more than 80,000 vehicles, while GM recently agreed to a $220 million settlement with 36 states over allegations involving driver-data practices. Additional vehicle recalls Driver-data settlement
- Negative Sentiment: Costs and product uncertainty: Automakers face higher material, logistics, and memory costs as pricing power weakens. Separately, a report says GM has dropped a planned electric Corvette SUV, raising questions about its EV product strategy. Automaker cost pressures Electric Corvette SUV report
General Motors Company Profile
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Get Free Report)
General Motors Company designs, manufactures and sells cars, trucks, crossovers and sport utility vehicles. Its vehicle brands include Chevrolet, Buick, GMC and Cadillac, and its offerings also include vehicle parts, software and related services. GM Financial provides automotive financing and leasing products to customers and dealers.
Founded in 1908, General Motors is headquartered in Detroit, Michigan. The company serves customers in North America and international markets, with operations and sales spanning multiple regions.
Mary Barra has served as GM's chief executive officer since 2014.
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