General Motors Company (GM) Upgraded to Buy by Bank of America Corporation
General Motors Company (NYSE:GM) (TSE:GMM.U) was upgraded by stock analysts at Bank of America Corporation from a “neutral” rating to a “buy” rating in a note issued to investors on Tuesday, MarketBeat.com reports. The brokerage currently has a $57.00 target price on the auto manufacturer’s stock, up from their previous target price of $40.00. Bank of America Corporation’s price objective would indicate a potential upside of 35.23% from the company’s previous close.
The analysts wrote, “gets it.” The firm’s John Murphy upgraded General Motors’ stock rating from Neutral to Buy with a price target boosted from $40 to $57 (see Murphy’s track record here).General Motors management time is showing investors it is dedicated to pursuing expansion opportunities at an “accelerated pace” while simultaneously maintaining the “strength” of its core truck and global auto business, Murphy argued in his upgrade note. Specifically, the company’s ability to include autonomous electric vehicles into a ride-hailing fleet that is integrated with OnStar gives it a “unique competitive first mover position.”As General Motors develops and commercializes its technology over time, the company will at the very least be able to “defend its current market share in whatever direction the new mobility world morphs into,” the analyst said. But the more likely scenario would consist of the company offering a “more valuable mobility product” that will drive shareholder value higher.At this time, General Motors’ vision of its future implies that management now “deserves the benefit of the doubt” and investors should treat the stock accordingly, Murphy said.”We are acutely aware of the cyclical risks that represent a material overhang and are the biggest impediment to upside in the stock,” Murphy concluded. “Nonetheless, we think GM possesses the requisite pieces of the puzzle to capitalize on the opportunities presented by thechanging mobility landscape, while leveraging the strength of its core auto business.”
Other equities analysts have also issued research reports about the stock. Deutsche Bank AG reiterated a “buy” rating and issued a $51.00 target price on shares of General Motors in a research note on Monday. Citigroup Inc. reissued a “buy” rating and issued a $53.00 price target on shares of General Motors in a research report on Monday. Morgan Stanley restated an “overweight” rating and set a $43.00 price target (up from $40.00) on shares of General Motors in a research note on Thursday, September 21st. Standpoint Research downgraded shares of General Motors from a “buy” rating to a “hold” rating in a report on Thursday, September 14th. Finally, Piper Jaffray Companies reaffirmed a “buy” rating and issued a $44.00 price objective on shares of General Motors in a report on Tuesday, September 12th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, eleven have assigned a buy rating and three have assigned a strong buy rating to the company’s stock. General Motors has a consensus rating of “Buy” and an average price target of $40.50.
General Motors (GM) traded up 2.89% on Tuesday, reaching $43.37. The company’s stock had a trading volume of 11,383,598 shares. The firm has a 50 day moving average of $37.52 and a 200 day moving average of $35.28. General Motors has a 12 month low of $30.21 and a 12 month high of $43.70. The firm has a market cap of $63.20 billion, a price-to-earnings ratio of 7.54 and a beta of 1.44.
General Motors (NYSE:GM) (TSE:GMM.U) last posted its quarterly earnings results on Tuesday, July 25th. The auto manufacturer reported $1.89 earnings per share for the quarter, topping the consensus estimate of $1.72 by $0.17. The company had revenue of $36.98 billion during the quarter, compared to the consensus estimate of $37.67 billion. General Motors had a return on equity of 22.45% and a net margin of 5.38%. The firm’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.86 EPS. Analysts anticipate that General Motors will post $6.13 earnings per share for the current year.
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In related news, VP Thomas S. Timko sold 17,255 shares of General Motors stock in a transaction on Friday, July 28th. The shares were sold at an average price of $35.79, for a total value of $617,556.45. Following the transaction, the vice president now owns 26,100 shares in the company, valued at approximately $934,119. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Charles K. Stevens III sold 16,000 shares of General Motors stock in a transaction on Friday, July 28th. The stock was sold at an average price of $35.80, for a total transaction of $572,800.00. Following the completion of the transaction, the insider now owns 77,052 shares in the company, valued at approximately $2,758,461.60. The disclosure for this sale can be found here. In the last ninety days, insiders sold 639,947 shares of company stock valued at $23,485,128. 0.04% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Intrust Bank NA grew its stake in shares of General Motors by 0.3% during the second quarter. Intrust Bank NA now owns 7,174 shares of the auto manufacturer’s stock valued at $250,000 after buying an additional 25 shares during the last quarter. IFC Holdings Incorporated FL increased its holdings in shares of General Motors by 0.3% in the second quarter. IFC Holdings Incorporated FL now owns 32,119 shares of the auto manufacturer’s stock worth $1,120,000 after buying an additional 88 shares during the period. Rehmann Capital Advisory Group increased its holdings in shares of General Motors by 1.8% in the second quarter. Rehmann Capital Advisory Group now owns 6,583 shares of the auto manufacturer’s stock worth $230,000 after buying an additional 115 shares during the period. Alpha Windward LLC lifted its stake in shares of General Motors by 2.3% in the 2nd quarter. Alpha Windward LLC now owns 5,542 shares of the auto manufacturer’s stock valued at $194,000 after acquiring an additional 125 shares during the last quarter. Finally, Heritage Investors Management Corp lifted its stake in shares of General Motors by 0.3% in the 2nd quarter. Heritage Investors Management Corp now owns 49,657 shares of the auto manufacturer’s stock valued at $1,735,000 after acquiring an additional 130 shares during the last quarter. Institutional investors and hedge funds own 72.21% of the company’s stock.
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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