Citigroup Reiterates "Hold" Rating for General Motors (GM)

Mindy Sparks
May 16, 2018

In other General Motors news, insider Charles K. Stevens III sold 35,000 shares of the firm's stock in a transaction that occurred on Monday, April 2nd. Trexquant Investment LP's holdings in General Motors were worth $3,395,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of GM. During the same quarter previous year, the company earned $1.70 EPS. Finally, SG Americas Securities LLC raised its position in shares of General Motors by 4,992.3% during the fourth quarter. Cerebellum GP LLC bought a new stake in shares of General Motors in the 4th quarter valued at $123,000. This will give analytical advantage to a shorter-term trader since it pursues the price more intimately, and consequently produces less "lag" as comparison to the longer-term moving average. Sawtooth Solutions LLC acquired a new stake in shares of General Motors in the 1st quarter worth $522,000. In other words, EPS reveals how profitable a company is on a share owner basis.

A number of brokerages recently issued reports on GM. ValuEngine downgraded General Motors from a "buy" rating to a "hold" rating in a research report on Wednesday, May 2nd. Citigroup reaffirmed a "hold" rating and set a $70.00 price target on shares of General Motors in a research report on Friday, April 27th. The outer bands are based on volatility in price, which means that they expand when price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends. Wall Street analysts have a consensus 2.40 recommendation on the stock. This company shares are 29.87% off its target price of $47.57 and the current market capitalization stands at $50.75B.

In related news, Director John C. Lechleiter bought 5,000 shares of the company's stock in a transaction on Friday, February 9th. The shares were sold at an average price of $41.85, for a total transaction of $6,944,756.40. Earnest Prtn Limited Liability Company accumulated 1,644 shares or 0% of the stock. Also, EVP Mark L. Reuss sold 165,944 shares of the business's stock in a transaction dated Thursday, February 15th. The shares were purchased at an average cost of $10.28 per share, for a total transaction of $51,400.00. Following the completion of the sale, the insider now directly owns 67,741 shares in the company, valued at $2,445,450.10. The disclosure for this sale can be found here. The stock appeared $24.37 above its 52-week highs and is up 1.94% for the last five trades. The expected future increase in earnings per share ("EPS") is an incredibly important identifying an under-valued stock. A beta of greater than 1 indicates that the security's price is theoretically more volatile than the market. Ford Motor has a 52 week low of $10.14 and a 52 week high of $13.48. The Price to Book ratio for General Motors Company NYSE:GM is 1.515957.

General Motors Company (NYSE:GM), maintained return on investment for the last twelve months at 4.41, higher than what Reuters data shows regarding industry's average. The auto manufacturer reported $1.43 EPS for the quarter, topping the Zacks' consensus estimate of $1.24 by $0.19. The company had revenue of $36.10 billion for the quarter, compared to the consensus estimate of $34.67 billion. Ford Motor had a net margin of 4.85% and a return on equity of 21.71%.

Performance Review: Over the last 5.0 days, General Motors Company's shares returned 0.8 percent, and in the past 30.00 days, the figure appeared at -5.42 percent. During the same period last year, the company posted $1.70 EPS. sell-side analysts forecast that General Motors will post 6.37 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 22nd. Stockholders of record on Friday, June 8th will be given a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 4.15%.

On 4/10/2018 NYSE:F - Ford Motor announced a quarterly dividend of $0.15 5.2% with an ex dividend date of 4/19/2018 which will be payable on 6/1/2018.

When looking at the performance of General Motors Company, you have to understand the macro picture.

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

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