General Motors (NYSE:GM) Stock Rating Lowered by Wall Street Zen

General Motors (NYSE:GM) (TSE:GMM.U) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

GM has been the topic of a number of other reports. Deutsche Bank Aktiengesellschaft set a $98.00 price objective on General Motors in a research report on Wednesday, October 21st. Benchmark reissued a “buy” rating and issued a $105.00 target price (up from $90.00) on shares of General Motors in a report on Tuesday, July 21st. UBS Group reduced their target price on shares of General Motors from $112.00 to $109.00 and set a “buy” rating for the company in a report on Wednesday, October 21st. Barclays decreased their target price on shares of General Motors from $110.00 to $105.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 21st. Finally, Tigress Financial lifted their price target on shares of General Motors from $130.00 to $132.00 and gave the company a “strong-buy” rating in a report on Wednesday, October 28th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, General Motors has a consensus rating of “Moderate Buy” and a consensus price target of $101.44.

General Motors Trading Up 0.1%

NYSE:GM opened at $86.24 on Friday. General Motors has a one year low of $67.06 and a one year high of $93.70. The business has a fifty day moving average price of $83.35 and a 200-day moving average price of $80.83. The firm has a market capitalization of $72.75 billion, a price-to-earnings ratio of 19.78, a price-to-earnings-growth ratio of 0.49 and a beta of 1.40. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.09 and a quick ratio of 0.94.

General Motors (NYSE:GM) (TSE:GMM.U) last released its earnings results on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share for the quarter, beating the consensus estimate 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 period in the previous year, the business earned $2.80 earnings per share. General Motors’s quarterly revenue was up 2.9% compared to the same quarter last year. Sell-side analysts forecast that General Motors will post 13.37 EPS for the current year.

General Motors announced that its Board of Directors has initiated a share repurchase plan on Tuesday, October 20th that authorizes the company to buy back $20 billion in shares. This repurchase authorization authorizes the auto manufacturer to reacquire up to 27.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other General Motors news, EVP Rory Harvey sold 16,513 shares of the stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $89.64, for a total transaction of $1,480,225.32. Following the completion of the transaction, the executive vice president owned 12,000 shares of the company’s stock, valued at $1,075,680. This represents a 57.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On General Motors

Several large investors have recently made changes to their positions in the company. McKinney Capital Management LLC purchased a new stake in shares of General Motors during the third quarter valued at about $1,429,000. Ibex Wealth Advisors boosted its holdings in shares of General Motors by 26.5% in the 3rd quarter. Ibex Wealth Advisors now owns 15,882 shares of the auto manufacturer’s stock valued at $1,223,000 after buying an additional 3,331 shares in the last quarter. Aberdeen Group plc boosted its holdings in shares of General Motors by 1.5% in the 3rd quarter. Aberdeen Group plc now owns 1,917,753 shares of the auto manufacturer’s stock valued at $147,667,000 after buying an additional 28,678 shares in the last quarter. Allworth Financial LP grew its position in shares of General Motors by 6.8% in the 3rd quarter. Allworth Financial LP now owns 25,109 shares of the auto manufacturer’s stock worth $1,935,000 after buying an additional 1,604 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its position in shares of General Motors by 12.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 2,925,457 shares of the auto manufacturer’s stock worth $225,877,000 after buying an additional 318,762 shares during the last quarter. 92.67% of the stock is owned by institutional investors.

Key Stories Impacting General Motors

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.