Traders Buy General Motors (GM) on Weakness

Investors purchased shares of General Motors (NYSE:GM) (TSE:GMM.U) on weakness during trading hours on Thursday. $114.46 million flowed into the stock on the tick-up and $86.40 million flowed out of the stock on the tick-down, for a money net flow of $28.06 million into the stock. Of all companies tracked, General Motors had the 21st highest net in-flow for the day. General Motors traded down ($0.12) for the day and closed at $36.47

Several research analysts have commented on the company. Morgan Stanley lowered their target price on General Motors from $50.00 to $46.00 and set an “overweight” rating for the company in a research note on Friday, August 17th. Goldman Sachs Group set a $36.00 target price on General Motors and gave the stock a “neutral” rating in a research note on Tuesday, September 11th. Citigroup lowered their target price on General Motors from $60.00 to $57.00 and set a “buy” rating for the company in a research note on Thursday, October 4th. ValuEngine downgraded General Motors from a “hold” rating to a “sell” rating in a research note on Tuesday, September 4th. Finally, Royal Bank of Canada boosted their target price on General Motors from $52.00 to $53.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 10th. One analyst has rated the stock with a sell rating, seven have given a hold rating and twelve have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $46.85.

The company has a debt-to-equity ratio of 1.75, a current ratio of 0.89 and a quick ratio of 0.74. The company has a market cap of $50.85 billion, a PE ratio of 5.33, a P/E/G ratio of 0.73 and a beta of 1.25.

General Motors (NYSE:GM) (TSE:GMM.U) last released its quarterly earnings data on Wednesday, October 31st. The auto manufacturer reported $1.87 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.25 by $0.62. General Motors had a return on equity of 25.81% and a net margin of 0.56%. The company had revenue of $35.79 billion during the quarter, compared to the consensus estimate of $34.85 billion. During the same quarter in the prior year, the firm posted $1.32 earnings per share. The firm’s revenue was up 6.4% compared to the same quarter last year. On average, equities research analysts predict that General Motors will post 6.12 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 20th. Stockholders of record on Friday, December 7th will be paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 4.22%. The ex-dividend date of this dividend is Thursday, December 6th. General Motors’s dividend payout ratio is currently 22.96%.

Several institutional investors have recently added to or reduced their stakes in GM. Ruffer LLP acquired a new position in shares of General Motors in the second quarter valued at approximately $120,141,000. Natixis increased its stake in shares of General Motors by 780.3% in the second quarter. Natixis now owns 3,170,930 shares of the auto manufacturer’s stock valued at $124,935,000 after buying an additional 2,810,730 shares during the period. Bank of New York Mellon Corp increased its position in General Motors by 20.0% during the 2nd quarter. Bank of New York Mellon Corp now owns 14,355,956 shares of the auto manufacturer’s stock valued at $565,624,000 after purchasing an additional 2,394,922 shares during the period. ING Groep NV increased its position in General Motors by 11,572.0% during the 2nd quarter. ING Groep NV now owns 1,635,827 shares of the auto manufacturer’s stock valued at $64,452,000 after purchasing an additional 1,621,812 shares during the period. Finally, Levin Capital Strategies L.P. increased its position in General Motors by 31.2% during the 3rd quarter. Levin Capital Strategies L.P. now owns 6,670,952 shares of the auto manufacturer’s stock valued at $224,611,000 after purchasing an additional 1,584,628 shares during the period. 73.84% of the stock is owned by institutional investors.

About General Motors (NYSE:GM)

General Motors Company, together with its subsidiaries, designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names.

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