General Motors (NYSE:GM) Stock Gets Price Target Cut from Royal Bank Of Canada

General Motors (NYSE:GM) (TSE:GMM.U) had its price target reduced by Royal Bank Of Canada from $102.00 to $98.00 in a report published on Wednesday, Marketbeat.com reports. They currently have an outperform rating on the auto manufacturer’s stock.

Several other equities research analysts have also recently weighed in on the company. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $101.00 price target on shares of General Motors in a research note on Friday, October 9th. Yorkville Ives started coverage on shares of General Motors in a research report on Monday, October 5th. They set an “outperform” rating and a $100.00 target price for the company. Jefferies Financial Group upgraded shares of General Motors from a “hold” rating to a “buy” rating and raised their price target for the stock from $90.00 to $99.00 in a report on Monday, July 27th. Wells Fargo & Company boosted their price target on shares of General Motors from $60.00 to $61.00 and gave the stock an “underweight” rating in a research report on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. dropped their price target on shares of General Motors from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $99.86.

General Motors Stock Performance

NYSE GM opened at $75.90 on Wednesday. The company has a market capitalization of $64.02 billion, a price-to-earnings ratio of 5.73, a PEG ratio of 0.44 and a beta of 1.40. General Motors has a twelve month low of $66.75 and a twelve month high of $91.85. The stock has a fifty day simple moving average of $83.37 and a 200 day simple moving average of $81.25. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.32.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its earnings results on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.69 by $0.01. The business had revenue of $50.02 billion during the quarter, compared to analyst estimates of $48.78 billion. General Motors had a return on equity of 19.36% and a net margin of 2.12%. General Motors’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same period last year, the company earned $2.80 EPS. Sell-side analysts expect that General Motors will post 13.45 EPS for the current year.

General Motors Announces Dividend

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. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.72 annualized dividend and a dividend yield of 0.9%. General Motors’s dividend payout ratio (DPR) is 36.36%.

General Motors declared that its Board of Directors has initiated a share repurchase plan on Tuesday, October 20th that allows the company to buy back $20.00 billion in shares. This repurchase authorization allows the auto manufacturer to repurchase up to 27.5% of its stock through open market purchases. Share repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, EVP Grant Dixton sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $88.44, for a total transaction of $3,537,600.00. Following the completion of the sale, the executive vice president owned 54,992 shares of the company’s stock, valued at $4,863,492.48. This trade represents a 42.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Mark L. Reuss sold 71,079 shares of General Motors stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $89.97, for a total value of $6,394,977.63. Following the completion of the sale, the president owned 92,293 shares of the company’s stock, valued at approximately $8,303,601.21. The trade was a 43.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 549,665 shares of company stock worth $49,010,828 over the last three months. Insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On General Motors

A number of institutional investors and hedge funds have recently modified their holdings of GM. BlackRock Inc. bought a new stake in shares of General Motors in the 2nd quarter valued at $5,958,995,000. Bank of America Corp DE bought a new position in General Motors during the second quarter worth $629,465,000. Legal & General Group Plc bought a new position in General Motors during the second quarter worth $599,066,000. Bank of New York Mellon Corp bought a new position in General Motors during the second quarter worth $522,916,000. Finally, Deutsche Bank AG acquired a new stake in General Motors in the second quarter worth $383,939,000. 92.67% of the stock is currently owned by institutional investors.

More General Motors News

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: GM announced a planned $20 billion share-repurchase program. The buyback could support per-share earnings and signal management’s confidence in cash generation, though investors remain focused on whether it can improve operating performance. GM beat and added a $20 billion buyback
• Positive Sentiment: GM is expanding its hybrid lineup as gasoline prices remain elevated and consumer demand shifts away from both traditional combustion vehicles and some pure EVs. Stronger adoption of Super Cruise and continued development of more efficient batteries could create additional revenue and margin opportunities. GM is expanding its hybrid lineup
• Positive Sentiment: The company is emphasizing AI, self-driving technology and “intelligence-defined” vehicles, including an AI-enhanced OnStar assistant and faster software updates. These initiatives could increase recurring software revenue, but meaningful financial benefits remain longer term. GM unveils plan for the intelligence-defined vehicle
• Neutral Sentiment: Several analysts continue to recommend buying the weakness, but one fair-value estimate was reduced from $104.22 to $101.22, reflecting lower price targets across parts of Wall Street. GM stock sees a modest fair-value cut
• Negative Sentiment: GM is shutting a U.S. battery-and-motor plant, highlighting slower-than-expected EV demand and the costs of adjusting its EV strategy. Electric trucks have also sold below expectations, raising concerns about utilization and future capital spending. GM is shutting one of its battery and motor plants
• Negative Sentiment: The cancellation of a long-term rare-earth magnet supply agreement adds uncertainty to GM’s EV supply chain and may indicate changes in its vehicle-production plans. GM terminates rare-earth magnet supply agreement
• Negative Sentiment: GM’s shares are also being dragged lower by weakness across the auto sector, with investors concerned about upcoming quarterly results, tightened guidance and the durability of earnings growth. Automaker stocks decline ahead of quarterly reports

About General Motors

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.

GM’s product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.