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

Zacks Investment Research cut shares of General Motors (NYSE:GM) (TSE:GMM.U) from a strong-buy rating to a hold rating in a research report released on Wednesday morning.

According to Zacks, “General Motors will increase the production of Chevrolet Bolt electric vehicle to meet its growing demand. Also, 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. 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. However, frequent vehicle recalls, high inventory level of passenger cars and unfavorable currency translation effects are few headwinds for the company. Also, in the last six months, shares of General Motors have underperformed the industry it belongs to. “

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A number of other equities research analysts have also weighed in on the stock. Vetr lowered shares of General Motors from a hold rating to a sell rating and set a $40.10 price objective on the stock. in a report on Tuesday, December 26th. Barclays reissued a buy rating and set a $61.00 price objective on shares of General Motors in a report on Tuesday, January 9th. Royal Bank of Canada raised shares of General Motors from a sector perform rating to an outperform rating and boosted their price objective for the company from $51.00 to $52.00 in a report on Tuesday, December 19th. Goldman Sachs set a $33.00 price objective on shares of General Motors and gave the company a sell rating in a report on Tuesday, February 6th. Finally, Morgan Stanley upgraded shares of General Motors from an equal weight rating to an overweight rating and set a $45.00 target price for the company in a research report on Monday, April 9th. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Buy and an average target price of $44.65.

Shares of GM opened at $38.73 on Wednesday. The firm has a market cap of $54,480.16, a PE ratio of 5.85, a P/E/G ratio of 0.74 and a beta of 1.63. The company has a debt-to-equity ratio of 1.86, a quick ratio of 0.76 and a current ratio of 0.89. General Motors has a 1-year low of $31.92 and a 1-year high of $46.76.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its quarterly earnings data on Tuesday, February 6th. The auto manufacturer reported $1.65 earnings per share for the quarter, beating analysts’ consensus estimates of $1.34 by $0.31. The firm had revenue of $34.48 billion for the quarter, compared to analyst estimates of $34.28 billion. General Motors had a negative net margin of 2.58% and a positive return on equity of 22.86%. The business’s quarterly revenue was down 7.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.28 earnings per share. sell-side analysts anticipate that General Motors will post 6.24 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 23rd. Shareholders of record on Friday, March 9th were given a $0.38 dividend. The ex-dividend date of this dividend was Thursday, March 8th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.92%. General Motors’s dividend payout ratio (DPR) is currently 22.96%.

In other General Motors news, Director Retiree Medical Benefits T. Uaw sold 40,000,000 shares of the company’s stock in a transaction dated Friday, March 2nd. The shares were sold at an average price of $39.71, for a total value of $1,588,400,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Thomas S. Timko sold 8,461 shares of the company’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $42.06, for a total transaction of $355,869.66. Following the completion of the transaction, the chief accounting officer now owns 33,519 shares of the company’s stock, valued at approximately $1,409,809.14. The disclosure for this sale can be found here. In the last quarter, insiders sold 40,294,848 shares of company stock valued at $1,600,664,861. Insiders own 0.04% of the company’s stock.

Several institutional investors have recently modified their holdings of GM. Fox Run Management L.L.C. raised its position in shares of General Motors by 3.1% during the 4th quarter. Fox Run Management L.L.C. now owns 38,782 shares of the auto manufacturer’s stock worth $1,590,000 after purchasing an additional 1,182 shares during the last quarter. Rathbone Brothers plc raised its position in shares of General Motors by 22.7% during the 4th quarter. Rathbone Brothers plc now owns 7,560 shares of the auto manufacturer’s stock worth $310,000 after purchasing an additional 1,400 shares during the last quarter. Camelot Portfolios LLC raised its position in shares of General Motors by 14.0% during the 4th quarter. Camelot Portfolios LLC now owns 11,923 shares of the auto manufacturer’s stock worth $489,000 after purchasing an additional 1,468 shares during the last quarter. YorkBridge Wealth Partners LLC raised its position in shares of General Motors by 60.3% during the 4th quarter. YorkBridge Wealth Partners LLC now owns 4,204 shares of the auto manufacturer’s stock worth $166,000 after purchasing an additional 1,582 shares during the last quarter. Finally, Gofen & Glossberg LLC IL raised its position in shares of General Motors by 14.7% during the 4th quarter. Gofen & Glossberg LLC IL now owns 12,458 shares of the auto manufacturer’s stock worth $511,000 after purchasing an additional 1,600 shares during the last quarter. Institutional investors and hedge funds own 73.55% of the company’s stock.

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About General Motors

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

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