General Motors (GM) Lifted to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a hold rating to a strong-buy rating in a research note published on Tuesday morning. The firm currently has $38.00 price objective on the auto manufacturer’s stock.

According to Zacks, “General Motors is gaining from strong crossover & truck sales. Moreover, the restructuring which includes closure of production in many facilities and job cuts, are supporting its profits. Also, the company is making serious efforts in the self-driving front. The company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and focus on self-driving and 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. “

GM has been the topic of several other research reports. Morgan Stanley increased their price objective on General Motors from $43.00 to $44.00 and gave the stock an overweight rating in a research note on Tuesday, November 6th. Bank of America reaffirmed a buy rating and set a $60.00 target price on shares of General Motors in a research report on Wednesday, September 12th. Citigroup dropped their target price on General Motors from $60.00 to $57.00 and set a buy rating on the stock in a research report on Thursday, October 4th. BMO Capital Markets raised General Motors from a market perform rating to an outperform rating in a research report on Monday. Finally, JPMorgan Chase & Co. raised their price objective on General Motors from $48.00 to $53.00 and gave the stock an overweight rating in a research report on Tuesday, November 27th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. General Motors presently has a consensus rating of Buy and a consensus price target of $44.91.

GM stock traded up $2.67 during midday trading on Tuesday, reaching $37.40. 25,510,166 shares of the company traded hands, compared to its average volume of 9,921,302. General Motors has a 52-week low of $30.56 and a 52-week high of $45.52. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.89 and a quick ratio of 0.76. The company has a market cap of $49.65 billion, a PE ratio of 5.65, a price-to-earnings-growth ratio of 0.70 and a beta of 1.22.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its quarterly earnings data on Wednesday, October 31st. The auto manufacturer reported $1.87 earnings per share (EPS) for the quarter, topping the 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 for the quarter, compared to analysts’ expectations of $34.85 billion. During the same quarter in the prior year, the firm earned $1.32 earnings per share. General Motors’s revenue was up 6.4% compared to the same quarter last year. Equities research analysts expect that General Motors will post 6.27 EPS for the current year.

The business also recently announced a quarterly dividend, which was paid on Thursday, December 20th. Stockholders of record on Friday, December 7th were issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 4.06%. The ex-dividend date of this dividend was Thursday, December 6th. General Motors’s dividend payout ratio is currently 22.96%.

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of General Motors by 2.9% during the 3rd quarter. Vanguard Group Inc. now owns 96,849,509 shares of the auto manufacturer’s stock valued at $3,260,923,000 after buying an additional 2,699,178 shares during the period. Vanguard Group Inc raised its position in General Motors by 2.9% in the third quarter. Vanguard Group Inc now owns 96,849,509 shares of the auto manufacturer’s stock valued at $3,260,923,000 after purchasing an additional 2,699,178 shares during the period. Capital World Investors raised its position in General Motors by 15.4% in the third quarter. Capital World Investors now owns 83,910,382 shares of the auto manufacturer’s stock valued at $2,825,263,000 after purchasing an additional 11,218,495 shares during the period. Franklin Resources Inc. raised its position in General Motors by 38.9% in the third quarter. Franklin Resources Inc. now owns 27,084,102 shares of the auto manufacturer’s stock valued at $911,922,000 after purchasing an additional 7,578,850 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in General Motors by 1.3% in the third quarter. Dimensional Fund Advisors LP now owns 15,079,324 shares of the auto manufacturer’s stock valued at $507,718,000 after purchasing an additional 188,426 shares during the period. Institutional investors and hedge funds own 75.69% of the company’s stock.

About General Motors

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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