General Motors (GM) Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of General Motors (NYSE:GM) (TSE:GMM.U) from a strong-buy rating to a hold rating in a report published on Wednesday, Zacks.com reports.

According to Zacks, “General Motors is gaining from strong crossover & truck sales. The company’s capital allocation strategy, initiatives to make vehicles more advanced, safer and fuel efficient, and focus on technology development are benefiting it. Also, it is increasing investment in emerging markets to boost global sales. Weak used-car pricing, increased launch-related costs and a challenging pricing environment are headwinds for the company.”

GM has been the topic of several other reports. Goldman Sachs Group reissued a neutral rating and set a $36.00 target price on shares of General Motors in a research note on Tuesday, March 26th. Seaport Global Securities began coverage on shares of General Motors in a research note on Wednesday, February 13th. They set a buy rating on the stock. Deutsche Bank began coverage on shares of General Motors in a research note on Thursday, December 13th. They set a buy rating on the stock. Royal Bank of Canada increased their target price on shares of General Motors from $50.00 to $52.00 and gave the stock an outperform rating in a research note on Thursday, February 7th. Finally, BMO Capital Markets increased their target price on shares of General Motors from $41.00 to $47.00 and gave the stock an outperform rating in a research note on Monday, January 14th. Six research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus target price of $47.20.

GM traded up $0.21 during midday trading on Wednesday, hitting $39.46. 77,544 shares of the company were exchanged, compared to its average volume of 8,058,177. The company has a market capitalization of $55.32 billion, a P/E ratio of 6.04, a P/E/G ratio of 0.67 and a beta of 1.27. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.80 and a current ratio of 0.92. General Motors has a 1-year low of $30.56 and a 1-year high of $45.00.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its quarterly earnings results on Wednesday, February 6th. The auto manufacturer reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.22. The company had revenue of $38.40 billion for the quarter, compared to the consensus estimate of $36.31 billion. General Motors had a return on equity of 23.99% and a net margin of 5.45%. The firm’s revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period last year, the firm earned $1.65 EPS. Analysts forecast that General Motors will post 6.48 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, March 22nd. Investors of record on Friday, March 8th were paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 3.85%. The ex-dividend date of this dividend was Thursday, March 7th. General Motors’s dividend payout ratio is presently 23.24%.

In other General Motors news, insider Alan S. Batey sold 70,266 shares of the stock in a transaction dated Monday, February 11th. The shares were sold at an average price of $38.39, for a total value of $2,697,511.74. Following the completion of the sale, the insider now owns 205,906 shares in the company, valued at approximately $7,904,731.34. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Christopher Hatto sold 8,499 shares of the stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $40.00, for a total transaction of $339,960.00. Following the completion of the sale, the vice president now owns 10,040 shares of the company’s stock, valued at approximately $401,600. The disclosure for this sale can be found here. Insiders sold a total of 113,521 shares of company stock worth $4,337,346 over the last ninety days. 0.39% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in GM. Dynamic Technology Lab Private Ltd acquired a new stake in General Motors in the 3rd quarter valued at about $522,000. Capital International Investors acquired a new stake in General Motors in the 3rd quarter valued at about $9,697,000. Capital Research Global Investors acquired a new stake in General Motors in the 3rd quarter valued at about $480,782,000. Pacer Advisors Inc. raised its holdings in General Motors by 34.2% in the 3rd quarter. Pacer Advisors Inc. now owns 81,615 shares of the auto manufacturer’s stock valued at $2,748,000 after acquiring an additional 20,777 shares during the last quarter. Finally, Caxton Associates LP raised its holdings in General Motors by 31.0% in the 3rd quarter. Caxton Associates LP now owns 12,668 shares of the auto manufacturer’s stock valued at $427,000 after acquiring an additional 2,999 shares during the last quarter. Institutional investors own 77.58% of the company’s stock.

About General Motors

General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, GM Cruise, and GM Financial. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names.

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