General Motors (NYSE:GM) Upgraded to Strong-Buy at UBS Group

UBS Group upgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) to a strong-buy rating in a report published on Monday,Zacks reports.

GM has been the subject of several other research reports. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $100.00 price target on shares of General Motors in a report on Wednesday, July 22nd. Tigress Financial boosted their target price on shares of General Motors from $92.00 to $130.00 and gave the company a “strong-buy” rating in a research note on Tuesday, July 28th. TD Cowen boosted their target price on shares of General Motors from $126.00 to $132.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Citigroup upped their price objective on General Motors from $108.00 to $131.00 and gave the company a “buy” rating in a report on Monday, June 1st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of General Motors in a research report on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $101.82.

General Motors Stock Performance

GM stock opened at $87.16 on Monday. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 1.42. The company has a market capitalization of $76.48 billion, a price-to-earnings ratio of 44.02, a P/E/G ratio of 0.48 and a beta of 1.32. The firm has a 50 day moving average of $84.39 and a two-hundred day moving average of $80.03. General Motors has a 12 month low of $54.33 and a 12 month high of $91.85.

General Motors (NYSE:GM) (TSE:GMM.U) last posted its earnings results on Tuesday, July 21st. The auto manufacturer reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.19 by $0.38. The firm had revenue of $48.03 billion during the quarter, compared to analyst estimates of $47.01 billion. General Motors had a return on equity of 18.18% and a net margin of 1.05%.The company’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same period in the previous year, the company earned $2.53 EPS. General Motors has set its FY 2026 guidance at 12.000-14.000 EPS. As a group, equities analysts anticipate that General Motors will post 13.32 EPS for the current fiscal year.

General Motors Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Friday, September 4th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Friday, September 4th. General Motors’s dividend payout ratio is 36.36%.

Insider Activity

In related news, President Mark Reuss sold 71,079 shares of General Motors stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $89.97, for a total value of $6,394,977.63. Following the completion of the transaction, the president directly owned 92,293 shares in the company, valued at approximately $8,303,601.21. The trade was a 43.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mary Barra sold 318,448 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $90.38, for a total transaction of $28,781,330.24. Following the completion of the sale, the chief executive officer directly owned 428,994 shares in the company, valued at approximately $38,772,477.72. The trade was a 42.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 549,665 shares of company stock valued at $49,010,828. 0.44% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On General Motors

Institutional investors and hedge funds have recently made changes to their positions in the business. California State Teachers Retirement System grew its position in General Motors by 7,719.0% in the 2nd quarter. California State Teachers Retirement System now owns 107,671,896 shares of the auto manufacturer’s stock valued at $8,299,350,000 after acquiring an additional 106,294,840 shares during the last quarter. BlackRock Inc. purchased a new stake in General Motors in the 2nd quarter valued at about $5,958,995,000. Franklin Resources Inc. boosted its position in General Motors by 2.7% in the 4th quarter. Franklin Resources Inc. now owns 32,158,403 shares of the auto manufacturer’s stock valued at $2,615,121,000 after buying an additional 835,645 shares during the period. Geode Capital Management LLC increased its holdings in General Motors by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 22,242,381 shares of the auto manufacturer’s stock worth $1,802,668,000 after purchasing an additional 267,477 shares during the period. Finally, Capital World Investors increased its holdings in General Motors by 7.8% during the 4th quarter. Capital World Investors now owns 19,536,049 shares of the auto manufacturer’s stock worth $1,588,688,000 after purchasing an additional 1,405,530 shares during the period. Institutional investors own 92.67% of the company’s stock.

Key General Motors News

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: UBS raised its GM price target to $114 from $102, arguing that Wall Street may be undervaluing recurring, high-margin revenue from OnStar connected services and Super Cruise driver assistance. UBS views GM’s digital business as a significant growth driver beyond vehicle sales. General Motors has an underappreciated growth driver, UBS says
• Positive Sentiment: GM plans to introduce a new customer software experience in redesigned Chevrolet Silverado and GMC Sierra pickups later this year. A better infotainment platform could improve customer engagement and create more opportunities for digital-service revenue. GM launching new customer software experience with redesigned Chevy, GMC pickups
• Positive Sentiment: GM says it aims to source battery cells entirely within the United States within two to three years and is targeting domestic sodium-ion battery production by 2029. The strategy could reduce exposure to Chinese supply chains and improve supply security, although the financial benefits are longer term. GM pursues domestic battery supply chain as Ford faces China scrutiny
• Neutral Sentiment: GM’s Australia leadership transition and product-related coverage, including removal of the Corvette fuel-door lock and development of its next small-block V8, are unlikely to materially affect near-term earnings or valuation. GM Says Deleting The C8 Corvette’s Fuel-Door Lock is an Upgrade

General Motors Company Profile

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells cars, trucks and sport utility vehicles through its Chevrolet, Buick, GMC and Cadillac brands.

GM’s product portfolio includes gasoline-powered and electric vehicles, full-size pickup trucks, commercial vehicles and luxury automobiles. The company is developing battery-electric and other advanced vehicle technologies, while also offering connected-vehicle services through its OnStar platform.