General Motors (GM) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a sell rating to a hold rating in a research note published on Tuesday.

According to Zacks, “General Motors outperformed the industry it belongs to over the last six months. The company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and focus on technology development are likely to benefit. Moreover, the company's focus on capital deployment is expected to boost shareholder returns. Its restructuring activities are also expected to benefit in the long run. Also, the company is raising investment in emerging markets to boost global sales. It is trying to take advantage of emerging markets growth via product launches and joint ventures.”

GM has been the topic of several other reports. UBS Group restated a buy rating and set a $50.00 target price (up from $39.00) on shares of General Motors in a report on Wednesday, October 11th. Vetr lowered General Motors from a strong-buy rating to a hold rating and set a $43.99 target price on the stock. in a report on Monday, December 4th. Craig Hallum set a $45.00 target price on General Motors and gave the company a hold rating in a report on Wednesday, October 25th. Royal Bank of Canada upgraded General Motors from a sector perform rating to an outperform rating and raised their target price for the company from $51.00 to $52.00 in a report on Tuesday, December 19th. Finally, Piper Jaffray Companies set a $51.00 target price on General Motors and gave the company a buy rating in a report on Tuesday, October 24th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus price target of $44.29.

Shares of General Motors (GM) traded down $0.12 during trading hours on Tuesday, hitting $44.07. The company had a trading volume of 14,911,914 shares, compared to its average volume of 12,800,000. General Motors has a twelve month low of $31.92 and a twelve month high of $46.76. The company has a current ratio of 0.94, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The stock has a market capitalization of $62,600.00, a price-to-earnings ratio of 9.54, a price-to-earnings-growth ratio of 0.82 and a beta of 1.55.

General Motors (NYSE:GM) (TSE:GMM.U) last posted its earnings results on Tuesday, October 24th. The auto manufacturer reported $1.32 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.07 by $0.25. General Motors had a return on equity of 20.95% and a net margin of 2.00%. The company had revenue of $30.48 billion for the quarter, compared to analyst estimates of $29.93 billion. During the same period last year, the company earned $1.72 earnings per share. The business’s revenue was down 16.6% compared to the same quarter last year. sell-side analysts anticipate that General Motors will post 6.25 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 21st. Stockholders of record on Friday, December 8th were given a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 3.45%. The ex-dividend date of this dividend was Thursday, December 7th. General Motors’s dividend payout ratio is currently 32.90%.

In related news, insider Barry L. Engle II sold 50,443 shares of General Motors stock in a transaction dated Monday, December 4th. The stock was sold at an average price of $43.08, for a total transaction of $2,173,084.44. Following the sale, the insider now directly owns 57,091 shares of the company’s stock, valued at $2,459,480.28. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Charles K. Stevens III sold 265,458 shares of General Motors stock in a transaction dated Friday, October 27th. The stock was sold at an average price of $44.49, for a total value of $11,810,226.42. Following the sale, the chief financial officer now directly owns 326,510 shares in the company, valued at $14,526,429.90. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 552,298 shares of company stock worth $24,408,137. 0.04% of the stock is currently owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in GM. YorkBridge Wealth Partners LLC boosted its holdings in General Motors by 43.5% during the second quarter. YorkBridge Wealth Partners LLC now owns 2,838 shares of the auto manufacturer’s stock valued at $101,000 after purchasing an additional 860 shares in the last quarter. Fieldpoint Private Securities LLC acquired a new stake in General Motors during the third quarter valued at approximately $119,000. Ropes Wealth Advisors LLC boosted its holdings in General Motors by 240.2% during the second quarter. Ropes Wealth Advisors LLC now owns 4,600 shares of the auto manufacturer’s stock valued at $161,000 after purchasing an additional 3,248 shares in the last quarter. Fayez Sarofim & Co. acquired a new stake in General Motors during the third quarter valued at approximately $202,000. Finally, Capital Investment Advisory Services LLC acquired a new stake in General Motors during the third quarter valued at approximately $203,000. 73.01% of the stock is currently owned by institutional investors and hedge funds.

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About General Motors

General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC.

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