General Motors (NYSE:GM) Shares Gap Down – Should You Sell?

General Motors Company (NYSE:GM) (TSE:GMM.U) shares gapped down prior to trading on Tuesday. The stock had previously closed at $82.75, but opened at $77.22. General Motors shares last traded at $78.2020, with a volume of 4,107,045 shares traded.

General Motors News Roundup

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

• Positive Sentiment: GM reported third-quarter revenue of approximately $50.0 billion and adjusted EBIT of $4.1 billion, up about 22% year over year. Adjusted earnings were $3.70 per share, above consensus, while revenue also exceeded estimates. General Motors Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: The automaker raised its 2026 adjusted automotive free-cash-flow outlook to $11.5 billion-$12.5 billion from $9.5 billion-$11.5 billion, signaling stronger cash generation. The board also authorized a new $20 billion share-repurchase program and declared a quarterly dividend. GM Third-Quarter Results and Guidance Update
• Neutral Sentiment: GM’s revenue increased even though it sold fewer vehicles, reflecting pricing discipline and a favorable mix led by pickup trucks. However, the broader market was also weaker, with technology stocks and major indexes under pressure, potentially amplifying volatility in GM shares. General Motors Revenue Rises Despite Selling Fewer Cars
• Negative Sentiment: GM narrowed or lowered its full-year profit expectations and plans to pause some truck production as it manages inventory and demand. Investors viewed the revised outlook as more important than the quarterly beat, raising concerns about slowing sales, rising costs and future earnings momentum. Why GM’s Stock Is Having Its Worst Day in Over a Year
• Negative Sentiment: GM Financial reported lower quarterly net income of $487 million, compared with $589 million a year earlier, adding to concerns about pressure in the company’s financing business. GM Financial Third-Quarter Operating Results

Analyst Ratings Changes

GM has been the topic of several recent research reports. Jefferies Financial Group raised shares of General Motors from a “hold” rating to a “buy” rating and raised their price target for the company from $90.00 to $99.00 in a research report on Monday, July 27th. Truist Financial set a $105.00 price objective on General Motors in a report on Wednesday, October 7th. Royal Bank Of Canada increased their price objective on General Motors from $100.00 to $102.00 and gave the stock an “outperform” rating in a research note on Monday, October 12th. BNP Paribas Exane raised their target price on General Motors from $102.00 to $112.00 and gave the company an “outperform” rating in a report on Monday, August 31st. Finally, Daiwa Securities Group raised their target price on General Motors from $83.00 to $86.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $101.18.

General Motors Stock Performance

The company has a 50-day simple moving average of $84.23 and a two-hundred day simple moving average of $81.22. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 1.42. The firm has a market cap of $68.46 billion, a PE ratio of 39.40, a PEG ratio of 0.46 and a beta of 1.40.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its quarterly earnings data on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.69 by $0.01. General Motors had a return on equity of 18.18% and a net margin of 1.05%. The firm had revenue of $50.02 billion during the quarter, compared to the consensus estimate of $48.78 billion. During the same quarter in the prior year, the company earned $2.80 EPS. The business’s revenue for the quarter was up 2.9% on a year-over-year basis. As a group, equities research analysts forecast that General Motors Company will post 13.53 earnings per share for the current year.

Insider Buying and Selling

In other General Motors news, EVP Grant Dixton sold 40,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $88.44, for a total value of $3,537,600.00. Following the transaction, the executive vice president directly owned 54,992 shares in the company, valued at $4,863,492.48. The trade was a 42.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Rory Harvey sold 8,882 shares of the stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $86.95, for a total transaction of $772,289.90. Following the transaction, the executive vice president directly owned 28,513 shares of the company’s stock, valued at $2,479,205.35. This represents a 23.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last ninety days. Corporate insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On General Motors

Several institutional investors have recently bought and sold shares of GM. Sumitomo Mitsui DS Asset Management Company Ltd lifted its position in shares of General Motors by 1.7% during the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 146,140 shares of the auto manufacturer’s stock valued at $11,253,000 after buying an additional 2,451 shares during the last quarter. LexAurum Advisors LLC increased its holdings in General Motors by 2.5% in the 3rd quarter. LexAurum Advisors LLC now owns 5,995 shares of the auto manufacturer’s stock worth $462,000 after acquiring an additional 148 shares during the last quarter. Kaufman Rossin Wealth LLC increased its holdings in General Motors by 7.9% in the 3rd quarter. Kaufman Rossin Wealth LLC now owns 8,874 shares of the auto manufacturer’s stock worth $683,000 after acquiring an additional 647 shares during the last quarter. Brown Lisle Cummings Inc. raised its stake in General Motors by 86.0% in the 3rd quarter. Brown Lisle Cummings Inc. now owns 865 shares of the auto manufacturer’s stock valued at $67,000 after acquiring an additional 400 shares during the period. Finally, IFP Advisors Inc raised its stake in General Motors by 5.6% in the 3rd quarter. IFP Advisors Inc now owns 15,517 shares of the auto manufacturer’s stock valued at $1,195,000 after acquiring an additional 825 shares during the period. Hedge funds and other institutional investors own 92.67% of the company’s stock.

General Motors Company Profile

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.