Zacks Investment Research upgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a hold rating to a buy rating in a research note 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.”
Other equities analysts have also recently issued reports about the company. Evercore ISI raised their target price on General Motors from $40.00 to $41.38 in a report on Friday, December 29th. Vetr upgraded General Motors from a hold rating to a buy rating and set a $43.99 target price for the company in a report on Monday, November 6th. Deutsche Bank restated a buy rating on shares of General Motors in a report on Friday, November 17th. Piper Jaffray Companies set a $51.00 target price on General Motors and gave the company a buy rating in a report on Tuesday, October 24th. Finally, Guggenheim upgraded General Motors from a neutral rating to a buy rating and set a $37.00 target price for the company in a report on Monday, November 20th. Two analysts have rated the stock with a sell rating, twelve have given a hold rating, eleven have assigned 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 an average target price of $44.44.
General Motors (NYSE:GM) (TSE:GMM.U) last announced its earnings results on Tuesday, February 6th. The auto manufacturer reported $1.65 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $34.48 billion during the quarter, compared to analysts’ expectations of $34.28 billion. During the same period last year, the business posted $1.28 EPS. General Motors’s revenue for the quarter was down 7.7% on a year-over-year basis. research analysts predict that General Motors will post 6.25 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, March 23rd. Stockholders of record on Friday, March 9th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 3.62%. The ex-dividend date is Thursday, March 8th. General Motors’s dividend payout ratio (DPR) is presently 29.51%.
In other news, insider Barry L. Engle II sold 50,443 shares of the firm’s stock in a transaction dated Monday, December 4th. The stock was sold at an average price of $43.08, for a total transaction of $2,173,084.44. Following the sale, the insider now owns 57,091 shares of the company’s stock, valued at approximately $2,459,480.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mark L. Reuss sold 30,000 shares of the firm’s stock in a transaction dated Thursday, January 4th. The stock was sold at an average price of $43.09, for a total value of $1,292,700.00. Following the sale, the insider now directly owns 103,052 shares in the company, valued at approximately $4,440,510.68. The disclosure for this sale can be found here. Insiders have sold a total of 203,847 shares of company stock worth $8,793,908 in the last three months. Corporate insiders own 0.04% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Icon Wealth Partners LLC acquired a new position in General Motors during the fourth quarter worth approximately $106,000. Fieldpoint Private Securities LLC acquired a new position in General Motors during the third quarter worth approximately $119,000. Cerebellum GP LLC acquired a new position in General Motors during the fourth quarter worth approximately $123,000. Independence Bank of Kentucky acquired a new position in General Motors during the fourth quarter worth approximately $129,000. Finally, Stumpf Capital Management LLC acquired a new position in General Motors during the fourth quarter worth approximately $131,000. 73.38% of the stock is currently owned by institutional investors and hedge funds.
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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