General Motors (NYSE:GM) Shares Gap Up on Better-Than-Expected Earnings

General Motors (NYSE:GM) (TSE:GMM.U) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $43.21, but opened at $45.89. General Motors shares last traded at $45.30, with a volume of 8,988,857 shares trading hands.

The auto manufacturer reported $2.62 EPS for the quarter, topping the consensus estimate of $2.02 by $0.60. The business had revenue of $43.01 billion during the quarter, compared to analysts’ expectations of $41.09 billion. General Motors had a net margin of 5.89% and a return on equity of 14.34%. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same period last year, the company posted $2.21 earnings per share.

General Motors Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 20th. Stockholders of record on Friday, June 7th will be given a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.06%. General Motors’s dividend payout ratio is 6.57%.

Analysts Set New Price Targets

A number of research firms have recently commented on GM. Morgan Stanley lifted their price target on shares of General Motors from $43.00 to $46.00 and gave the company an “overweight” rating in a research report on Wednesday, April 10th. Piper Sandler initiated coverage on shares of General Motors in a research note on Friday, March 15th. They issued a “neutral” rating and a $44.00 price objective on the stock. Wedbush raised their price objective on shares of General Motors from $40.00 to $45.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 31st. Royal Bank of Canada raised their price objective on shares of General Motors from $54.00 to $56.00 and gave the stock an “overweight” rating in a research note on Tuesday. Finally, The Goldman Sachs Group lifted their price target on shares of General Motors from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, January 31st. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, General Motors presently has an average rating of “Moderate Buy” and a consensus price target of $52.52.

Insider Activity at General Motors

In related news, CAO Christopher Hatto sold 3,500 shares of General Motors stock in a transaction dated Thursday, March 28th. The stock was sold at an average price of $45.00, for a total value of $157,500.00. Following the completion of the transaction, the chief accounting officer now directly owns 12,007 shares of the company’s stock, valued at $540,315. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other news, EVP Rory Harvey sold 5,100 shares of the company’s stock in a transaction dated Thursday, March 21st. The stock was sold at an average price of $43.04, for a total value of $219,504.00. Following the completion of the sale, the executive vice president now directly owns 12,658 shares of the company’s stock, valued at approximately $544,800.32. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Christopher Hatto sold 3,500 shares of the company’s stock in a transaction dated Thursday, March 28th. The shares were sold at an average price of $45.00, for a total value of $157,500.00. Following the completion of the sale, the chief accounting officer now directly owns 12,007 shares of the company’s stock, valued at $540,315. The disclosure for this sale can be found here. Insiders sold 86,248 shares of company stock valued at $3,614,078 over the last ninety days. 0.54% of the stock is owned by insiders.

Hedge Funds Weigh In On General Motors

Several institutional investors and hedge funds have recently modified their holdings of GM. SouthState Corp grew its position in shares of General Motors by 173.8% in the 3rd quarter. SouthState Corp now owns 764 shares of the auto manufacturer’s stock valued at $25,000 after purchasing an additional 485 shares during the period. Highlander Capital Management LLC acquired a new position in General Motors during the 4th quarter worth approximately $27,000. Cape Investment Advisory Inc. raised its stake in shares of General Motors by 75.9% during the 4th quarter. Cape Investment Advisory Inc. now owns 832 shares of the auto manufacturer’s stock worth $30,000 after purchasing an additional 359 shares in the last quarter. BluePath Capital Management LLC bought a new stake in shares of General Motors during the 3rd quarter worth approximately $33,000. Finally, Sachetta LLC bought a new stake in shares of General Motors during the 4th quarter worth approximately $33,000. 92.67% of the stock is currently owned by institutional investors and hedge funds.

General Motors Trading Up 4.8 %

The company has a market cap of $52.27 billion, a P/E ratio of 6.21, a PEG ratio of 0.50 and a beta of 1.51. The company has a current ratio of 1.08, a quick ratio of 0.90 and a debt-to-equity ratio of 1.21. The business has a 50 day moving average price of $41.73 and a 200-day moving average price of $35.96.

About General Motors

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