General Motors (NYSE:GM) Stock Rating Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a buy rating to a hold rating in a research report released on Saturday,Wall Street Zen reports.

GM has been the subject of a number of other research reports. Deutsche Bank Aktiengesellschaft set a $98.00 price objective on General Motors in a report on Wednesday, October 21st. Yorkville Ives initiated coverage on General Motors in a report on Monday, October 5th. They set an “outperform” rating and a $100.00 target price on the stock. Truist Financial set a $105.00 target price on General Motors in a report on Wednesday, October 7th. BNP Paribas Exane boosted their target price on General Motors from $102.00 to $112.00 and gave the stock an “outperform” rating in a research report on Monday, August 31st. Finally, Wells Fargo & Company upped their price target on General Motors from $60.00 to $61.00 and gave the company an “underweight” rating in a research note on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $101.44.

General Motors Stock Performance

Shares of General Motors stock opened at $86.24 on Friday. The firm has a fifty day moving average of $83.35 and a two-hundred day moving average of $80.83. The stock has a market capitalization of $72.75 billion, a price-to-earnings ratio of 19.78, a PEG ratio of 0.49 and a beta of 1.40. General Motors has a 52 week low of $67.06 and a 52 week high of $93.70. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.94 and a current ratio of 1.09.

General Motors (NYSE:GM) (TSE:GMM.U) last posted 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 return on equity of 19.36% and a net margin of 2.12%. The company had revenue of $50.02 billion for the quarter, compared to the consensus estimate of $48.78 billion. During the same quarter in the prior year, the business posted $2.80 EPS. The firm’s quarterly revenue was up 2.9% on a year-over-year basis. As a group, equities research analysts predict that General Motors will post 13.37 EPS for the current year.

General Motors announced that its board has approved a share buyback plan on Tuesday, October 20th that permits the company to repurchase $20 billion in outstanding shares. This repurchase authorization permits the auto manufacturer to reacquire up to 27.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

General Motors Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Friday, December 4th will be issued 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 0.8%. General Motors’s payout ratio is 16.51%.

Insider Activity at General Motors

In related news, EVP Rory Harvey sold 16,513 shares of the firm’s stock in a transaction on Wednesday, November 4th. The stock was 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 of the company’s stock, valued at approximately $1,075,680. This trade represents a 57.91% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On General Motors

Large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of General Motors in the 2nd quarter valued at approximately $5,958,995,000. Dimensional Fund Advisors LP raised its holdings in General Motors by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 14,225,518 shares of the auto manufacturer’s stock worth $1,059,668,000 after buying an additional 77,100 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in General Motors by 1.2% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,559,990 shares of the auto manufacturer’s stock worth $659,804,000 after buying an additional 101,885 shares during the period. Bank of America Corp DE acquired a new stake in General Motors during the 2nd quarter worth approximately $629,465,000. Finally, Legal & General Group Plc bought a new position in General Motors in the second quarter valued at approximately $599,066,000. 92.67% of the stock is currently owned by institutional investors.

Key General Motors News

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

About General Motors

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.