Zacks Investment Research upgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a hold rating to a buy rating in a report released on Wednesday morning. The firm currently has $46.00 price objective on the auto manufacturer’s stock.
According to Zacks, “General Motors reported fourth-quarter 2017 adjusted earnings per share of $1.65, beating the Zacks Consensus Estimate of $1.34.During the quarter, revenues also surpassed the the Zacks Consensus Estimate.For any fourth quarter, adjusted EBIT set a record. This was aided by sales of crossovers, strong pricing and cost-control initiatives, which were partly offset by a wholesale volume decline. Also, the company outperformed the industry it belongs to over the last six months. The company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and focus on technology development are likely to benefit. Its restructuring activities are also expected to benefit in the long run. Also, the company is raising investment in emerging markets to boost global sales. Howrver, weak used car pricing, a challenging pricing environment as well as more pressure on commodity costs are headwinds before it.”
Several other equities research analysts have also commented on GM. Berenberg Bank set a $34.00 price objective on General Motors and gave the stock a sell rating in a research report on Wednesday, February 7th. Bank of America increased their target price on General Motors from $57.00 to $60.00 and gave the company a buy rating in a research report on Wednesday, February 7th. Nomura set a $45.00 target price on General Motors and gave the company a neutral rating in a research report on Thursday, February 8th. Royal Bank of Canada set a $52.00 target price on General Motors and gave the company a buy rating in a research report on Tuesday, February 6th. Finally, Vetr upgraded General Motors from a sell rating to a hold rating and set a $40.24 target price on the stock in a research report on Monday. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, eleven have given a buy rating and two have issued a strong buy rating to the company’s stock. General Motors currently has an average rating of Hold and a consensus price target of $44.44.
General Motors (NYSE:GM) (TSE:GMM.U) last released its quarterly earnings data on Tuesday, February 6th. The auto manufacturer reported $1.65 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.34 by $0.31. General Motors had a positive return on equity of 22.86% and a negative net margin of 2.58%. The business had revenue of $34.48 billion for the quarter, compared to analyst estimates of $34.28 billion. During the same quarter in the prior year, the firm posted $1.28 EPS. The business’s quarterly revenue was down 7.7% compared to the same quarter last year. sell-side analysts forecast that General Motors will post 6.25 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 23rd. Investors of record on Friday, March 9th will be paid a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 3.62%. The ex-dividend date of this dividend is Thursday, March 8th. General Motors’s dividend payout ratio is currently 29.51%.
In related news, CFO Charles K. Stevens III sold 35,000 shares of the stock in a transaction on Friday, February 9th. The stock was sold at an average price of $40.88, for a total value of $1,430,800.00. Following the completion of the transaction, the chief financial officer now directly owns 26,052 shares of the company’s stock, valued at approximately $1,065,005.76. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Barry L. Engle II sold 50,443 shares of the stock in a transaction on Monday, December 4th. The shares were sold at an average price of $43.08, for a total value of $2,173,084.44. Following the completion of the transaction, the insider now directly owns 57,091 shares of the company’s stock, valued at $2,459,480.28. The disclosure for this sale can be found here. Over the last three months, insiders sold 203,847 shares of company stock valued at $8,793,908. 0.04% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Bramshill Investments LLC acquired a new stake in shares of General Motors in the 4th quarter worth $353,000. Millennium Management LLC increased its stake in shares of General Motors by 78.1% in the 4th quarter. Millennium Management LLC now owns 6,810,691 shares of the auto manufacturer’s stock worth $279,170,000 after acquiring an additional 2,986,293 shares during the last quarter. DSC Advisors L.P. acquired a new stake in shares of General Motors in the 4th quarter worth $2,209,000. Sciencast Management LP increased its stake in shares of General Motors by 25.8% in the 4th quarter. Sciencast Management LP now owns 15,624 shares of the auto manufacturer’s stock worth $676,000 after acquiring an additional 3,202 shares during the last quarter. Finally, Meadow Creek Investment Management LLC increased its stake in shares of General Motors by 22.7% in the 4th quarter. Meadow Creek Investment Management LLC now owns 190,638 shares of the auto manufacturer’s stock worth $7,814,000 after acquiring an additional 35,326 shares during the last quarter. 73.38% of the stock is owned by hedge funds and other institutional investors.
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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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