On October 12, 2023, investment analysts at Citigroup released a report on General Motors (GM) lowering its target price from $95.00 to $90.00. Despite the decrease, Citigroup maintained its “buy” rating on the company’s stock. According to the report, this adjusted price target reflects a potential upside of 190.98% from GM’s current trading price.
During Wednesday’s trading session, shares of GM traded down by $0.55 and closed at $30.93. The volume of shares traded was approximately 6,012,757, compared to the daily average volume of 14,014,687 shares. GM has a debt-to-equity ratio of 1.08 and possesses a current ratio of 1.15 along with a quick ratio of 0.96.
In terms of market capitalization, GM currently stands at $42.56 billion and has an attractive price-to-earnings (PE) ratio of 4.32 and a PEG ratio of 0.41, indicating potentially undervalued stock relative to earnings growth expectations in the future with respect to its size in the market*. Furthermore*, it has a beta value of 1.37 which suggests that the stock is likely to be more volatile than the overall market.
When considering GM’s performance over time, it is noteworthy that its fifty-two week low stands at $29.72 while its high reaches $43.63*.
Several institutional investors and hedge funds have made modifications to their existing holdings in GM recently as well*. BlackRock Inc., for example, increased its stake in General Motors by 0.7% during the first quarter*.
On July 25th*, General Motors announced its latest earnings results for the quarter*. The auto manufacturer reported earnings per share (EPS) of $1.91*, surpassing consensus estimates by $0.05. The company’s revenue for the quarter amounted to $44.75 billion, beating analysts’ expectations of $42.13 billion*. This increase in revenue represents a growth rate of 25.1% compared to the same period last year*. Analysts expect General Motors to achieve earnings per share of $7.59 for the current fiscal year.
In conclusion, investment analysts at Citigroup have lowered their target price for General Motors stock but maintained their “buy” rating on the company. The current price adjustment offers a potential upside of 190.98% from the current trading price*. However, investors should keep in mind that market conditions are always subject to change and should consider conducting further research before making any investment decisions regarding GM or any other securities.
*Note: The information provided is based on the reference date (October 12, 2023) and may no longer be accurate at present.
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Analysts Divided on General Motors as President Sells Shares
General Motors Receives Mixed Ratings from Analysts, President Sells Shares
Date: October 12, 2023
General Motors (GM), one of the world’s leading automobile manufacturers, has recently faced mixed reviews from equities research analysts. As reported on Tuesday, October 3rd, TheStreet downgraded GM’s rating from “b-” to “c+,” potentially reflecting concerns within the industry. This adjustment could have implications for investors and stakeholders alike.
Furthermore, renowned financial services company Jefferies Financial Group has raised its target price for General Motors shares from $37.00 to $39.00 in a report issued on Friday, July 7th. Conversely, UBS Group has decreased their target price for GM from $44.00 to $43.00 but maintained a “buy” rating for the company in their research report released recently.
Royal Bank of Canada (RBC) reaffirmed an “outperform” rating and set a price objective of $48.00 for GM shares. This move was announced on Wednesday, August 9th by RBC analysts who believe that General Motors holds significant potential within the market.
On another note, Mizuho reduced their target price for General Motors to $40.00 in a research report published on Wednesday, July 19th. Each analyst provides unique insights into GM’s performance and future prospects.
The ratings landscape indicates diverse opinions regarding the investment potential of General Motors stock as it is deliberated among industry experts and financial analysts. While one researcher rates the stock with a sell rating, six have proposed holding GM shares until further developments unfold. Another seven analysts have assigned a buy rating and one even issued a strong buy rating for the company.
According to data sourced from Bloomberg.com, the average rating given by these experts falls under the category of “Moderate Buy.” Additionally, there seems to be consensus among analysts through an average target price of $50.47 for General Motors stock.
In other developments, President Mark L. Reuss recently sold 9,300 shares of GM stock in a transaction completed on Thursday, July 13th. The shares were sold at an average price of $41.00, resulting in a total transaction value of $381,300.00. Following this sale, President Reuss currently holds approximately 282,973 shares in the company with an estimated valuation of around $11,601,893. These figures reflect the president’s personal investment decisions and may not necessarily be indicative of the company’s overall performance.
The transaction was legally disclosed by General Motors in a filing with the Securities and Exchange Commission (SEC). Investors can access more detailed information about this transaction through the SEC’s official website.
As corporate insiders hold approximately 0.54% of General Motors’ stock ownership as per current records, it is worth noting that such transactions by key executives potentially influence market sentiment and investor confidence.
In conclusion, General Motors has attracted varied ratings from equities research analysts in recent reports. With some downgrades alongside target price adjustments and positive assertions regarding its outlook within the industry, investors should consider various perspectives before making any investment decisions related to GM stock.
