Erste Group Bank Predicts Lower Earnings for General Motors

General Motors Company (NYSE:GM) (TSE:GMM.U) – Analysts at Erste Group Bank decreased their FY2027 earnings per share (EPS) estimates for General Motors in a research report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now forecasts that the auto manufacturer will earn $13.88 per share for the year, down from their previous estimate of $14.13. The consensus estimate for General Motors’ current full-year earnings is $11.44 per share.

General Motors (NYSE:GM) (TSE:GMM.U) last released its earnings results on Tuesday, January 27th. The auto manufacturer reported $2.51 earnings per share for the quarter, topping the consensus estimate of $2.26 by $0.25. General Motors had a return on equity of 14.72% and a net margin of 1.46%.The firm had revenue of $45.29 billion for the quarter, compared to the consensus estimate of $45.81 billion. During the same period in the prior year, the business posted $1.92 earnings per share. The firm’s revenue for the quarter was down 5.1% compared to the same quarter last year. General Motors has set its FY 2026 guidance at 9.750-10.500 EPS.

A number of other research firms also recently commented on GM. Zacks Research downgraded General Motors from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. The Goldman Sachs Group set a $104.00 price objective on General Motors in a report on Tuesday, January 27th. Wells Fargo & Company raised their price objective on General Motors from $48.00 to $57.00 and gave the stock an “underweight” rating in a report on Wednesday, January 28th. Jefferies Financial Group raised their price objective on General Motors from $85.00 to $97.00 and gave the stock a “hold” rating in a report on Monday, February 2nd. Finally, JPMorgan Chase & Co. raised their price objective on General Motors from $85.00 to $100.00 and gave the stock an “overweight” rating in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $91.38.

General Motors Stock Performance

General Motors stock opened at $72.62 on Wednesday. The stock’s 50-day moving average is $78.07 and its 200-day moving average is $74.25. The company has a market cap of $65.64 billion, a price-to-earnings ratio of 24.12, a price-to-earnings-growth ratio of 0.39 and a beta of 1.34. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.17 and a quick ratio of 1.01. General Motors has a 12 month low of $41.63 and a 12 month high of $87.62.

Institutional Investors Weigh In On General Motors

Large investors have recently modified their holdings of the stock. CWM LLC lifted its holdings in shares of General Motors by 50.8% in the 3rd quarter. CWM LLC now owns 340,858 shares of the auto manufacturer’s stock worth $20,782,000 after purchasing an additional 114,756 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in shares of General Motors by 6.2% in the 2nd quarter. Corient Private Wealth LLC now owns 341,426 shares of the auto manufacturer’s stock worth $16,802,000 after purchasing an additional 20,017 shares during the last quarter. SteelPeak Wealth LLC bought a new stake in shares of General Motors in the 3rd quarter worth approximately $3,411,000. Burney Co. lifted its holdings in shares of General Motors by 18.7% in the 3rd quarter. Burney Co. now owns 82,037 shares of the auto manufacturer’s stock worth $5,002,000 after purchasing an additional 12,913 shares during the last quarter. Finally, Permanent Capital Management LP bought a new stake in shares of General Motors in the 3rd quarter worth approximately $1,102,000. Institutional investors and hedge funds own 92.67% of the company’s stock.

General Motors Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Friday, March 6th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from General Motors’s previous quarterly dividend of $0.15. The ex-dividend date was Friday, March 6th. General Motors’s payout ratio is 23.92%.

General Motors announced that its Board of Directors has initiated a stock repurchase program on Tuesday, January 27th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the auto manufacturer to reacquire up to 8.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

About General Motors

General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.