General Motors (NYSE:GM) Reaches New 52-Week High – Here’s What Happened

General Motors Company (NYSE:GM) (TSE:GMM.U) hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $91.87 and last traded at $91.8590, with a volume of 987,135 shares trading hands. The stock had previously closed at $88.34.

General Motors News Summary

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

• Positive Sentiment: Zacks Research raised its earnings forecasts for several future periods, including FY2027 EPS to $14.48 from $13.44 and FY2028 EPS to $15.10 from $12.70. The upward revisions suggest stronger expected earnings, though they are analyst forecasts rather than company guidance. Zacks Research forecasts General Motors earnings
• Neutral Sentiment: GM’s 38% stake in Nevada’s Thacker Pass lithium project could support a domestic supply of battery materials for future EVs. The strategic benefit may take time to translate into earnings. General Motors takes 38% of Thacker Pass
• Negative Sentiment: GM is recalling about 67,000 electric vehicles after a software issue was reported that could cause a loss of braking. The recall adds safety and repair-cost risk, although an over-the-air fix is available. GM recalls EVs over braking software issue
• Negative Sentiment: Other reports describe additional recalls involving GM vehicles, including vans with a potential steering-gear issue, adding to quality-control concerns. GM recalls Chevy Express and GMC Savana vans
• Negative Sentiment: GM paid $220 million to settle allegations by 36 states related to the collection and sale of drivers’ data, creating a significant legal and reputational cost. GM dealer signups at center of driver data settlement
• Negative Sentiment: Industry warnings point to higher commodity, logistics and memory costs in 2027, while automakers may have less ability to pass increases on to customers. That could pressure GM’s margins if cost savings and pricing do not keep pace. Automakers face rising costs and a tighter market

Analysts Set New Price Targets

GM has been the subject of a number of research analyst reports. Benchmark reaffirmed a “buy” rating and set a $105.00 target price (up from $90.00) on shares of General Motors in a research report on Tuesday, July 21st. Morgan Stanley lowered their target price on General Motors from $101.00 to $95.00 and set an “overweight” rating for the company in a report on Wednesday, October 21st. JPMorgan Chase & Co. dropped their price target on General Motors from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. Barclays cut their price target on General Motors from $110.00 to $105.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 21st. Finally, Royal Bank Of Canada decreased their price objective on General Motors from $102.00 to $98.00 and set an “outperform” rating for the company in a report on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, General Motors presently has a consensus rating of “Moderate Buy” and an average price target of $101.44.

General Motors Trading Down 2.0%

The stock has a market capitalization of $73.82 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 0.52 and a beta of 1.40. The company has a current ratio of 1.09, a quick ratio of 0.94 and a debt-to-equity ratio of 1.32. The company has a 50-day moving average price of $83.34 and a 200 day moving average price of $80.79.

General Motors (NYSE:GM) (TSE:GMM.U) last issued its quarterly earnings data on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share for the quarter, beating analysts’ consensus estimates of $3.69 by $0.01. The company had revenue of $50.02 billion for the quarter, compared to the consensus estimate of $48.78 billion. General Motors had a return on equity of 19.36% and a net margin of 2.12%. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter last year, the company earned $2.80 earnings per share. On average, research analysts forecast that General Motors Company will post 13.37 earnings per share for the current fiscal year.

General Motors Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.72 dividend on an annualized basis and a yield of 0.8%. General Motors’s dividend payout ratio is presently 16.51%.

General Motors announced that its board has approved a share buyback plan on Tuesday, October 20th that permits the company to repurchase $20 billion in outstanding shares. This buyback authorization permits the auto manufacturer to repurchase up to 27.5% of its shares through open market purchases. Share buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On General Motors

Several institutional investors and hedge funds have recently bought and sold shares of the company. Richardson Financial Services Inc. lifted its stake in shares of General Motors by 75.7% in the 3rd quarter. Richardson Financial Services Inc. now owns 325 shares of the auto manufacturer’s stock valued at $25,000 after purchasing an additional 140 shares in the last quarter. Evergreen Advisors LLC acquired a new stake in General Motors during the 1st quarter worth approximately $26,000. Comprehensive Financial Planning Inc. PA acquired a new stake in General Motors during the 2nd quarter worth approximately $31,000. Burk Holdings LLC acquired a new stake in General Motors during the 2nd quarter worth approximately $31,000. Finally, Premier Financial Group purchased a new position in General Motors in the second quarter valued at approximately $31,000. 92.67% of the stock is owned by hedge funds and other institutional investors.

About General Motors

General Motors Company designs, manufactures and sells cars, trucks, crossovers and sport utility vehicles. Its vehicle brands include Chevrolet, Buick, GMC and Cadillac, and its offerings also include vehicle parts, software and related services. GM Financial provides automotive financing and leasing products to customers and dealers.

Founded in 1908, General Motors is headquartered in Detroit, Michigan. The company serves customers in North America and international markets, with operations and sales spanning multiple regions.

Mary Barra has served as GM’s chief executive officer since 2014.