General Motors (NYSE:GM) Shares Break Above 200 Day Moving Average – What’s Next?

General Motors Company (NYSE:GM) (TSE:GMM.U)’s stock price crossed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $80.60 and traded as high as $81.59. General Motors shares last traded at $80.6390, with a volume of 13,427,594 shares trading hands.

General Motors News Roundup

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: Nasdaq move may broaden investor interest. GM plans to transfer its listing from the New York Stock Exchange to the Nasdaq Global Select Market, aligning the company with its technology, software and electronics ambitions. The move could also make GM eligible for potential Nasdaq-100 inclusion, which may attract additional index-fund demand, although inclusion is not guaranteed. GM is shifting gears to the Nasdaq
• Positive Sentiment: Hybrid SUV expansion could support near-term demand. GM reportedly plans to offer hybrid versions of the Chevrolet Traverse, GMC Acadia and Buick Enclave, while investing approximately $2 billion to build hybrids in Lansing, Michigan. The pivot gives GM more products for consumers who are not ready to adopt fully electric vehicles and may improve utilization of existing manufacturing assets. GM to Offer Hybrid Chevrolet Traverse, GMC Acadia, and Buick Enclave
• Neutral Sentiment: Underlying performance remains a supporting factor. GM recently reported quarterly revenue of $50.02 billion and adjusted earnings of $3.70 per share, exceeding analyst expectations. However, the company still faces uncertainty around EV profitability, software execution and market share, limiting the immediate impact of the technology-focused repositioning. What General Motors Holders Got Right
• Negative Sentiment: $220 million privacy settlement adds legal and reputational costs. GM will pay 36 states to resolve allegations that it sold drivers’ location and driving-behavior data to data brokers. The payment is manageable relative to GM’s scale, but the case could increase regulatory scrutiny and undermine customer trust in its connected-car and OnStar businesses. GM reaches $220M settlement over selling drivers’ private data

Analyst Upgrades and Downgrades

Several analysts have issued reports on GM shares. Barclays cut their price target on shares of General Motors from $110.00 to $105.00 and set an “overweight” rating for the company in a research report on Wednesday, October 21st. Weiss Ratings reissued a “hold (c)” rating on shares of General Motors in a research note on Thursday, October 15th. Tigress Financial increased their target price on General Motors from $130.00 to $132.00 and gave the company a “strong-buy” rating in a report on Wednesday. JPMorgan Chase & Co. reduced their price target on General Motors from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. Finally, Deutsche Bank Aktiengesellschaft set a $98.00 price target on General Motors in a research note on Wednesday, October 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, General Motors presently has an average rating of “Moderate Buy” and an average price target of $101.44.

General Motors Stock Performance

The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.94 and a current ratio of 1.09. The business’s 50-day moving average is $83.06 and its 200-day moving average is $80.60. The company has a market capitalization of $72.27 billion, a PE ratio of 19.65, a PEG ratio of 0.43 and a beta of 1.40.

General Motors (NYSE:GM) (TSE:GMM.U) last announced its quarterly earnings data on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.69 by $0.01. General Motors had a return on equity of 19.36% and a net margin of 2.12%. The business had revenue of $50.02 billion during the quarter, compared to analysts’ expectations of $48.78 billion. During the same quarter in the previous year, the business earned $2.80 earnings per share. The firm’s quarterly revenue was up 2.9% compared to the same quarter last year. On average, research analysts anticipate that General Motors Company will post 13.39 earnings per share for the current year.

General Motors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Friday, December 4th will be issued a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.72 annualized dividend and a yield of 0.8%. General Motors’s dividend payout ratio (DPR) is currently 16.51%.

General Motors announced that its board has initiated a share repurchase program on Tuesday, October 20th that authorizes the company to repurchase $20 billion in outstanding shares. This buyback authorization authorizes the auto manufacturer to buy up to 27.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at General Motors

In related news, EVP Grant Dixton sold 40,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $88.44, for a total value of $3,537,600.00. Following the transaction, the executive vice president directly owned 54,992 shares in the company, valued at approximately $4,863,492.48. This represents a 42.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Trek Financial LLC boosted its position in shares of General Motors by 28.3% during the 3rd quarter. Trek Financial LLC now owns 14,805 shares of the auto manufacturer’s stock valued at $1,140,000 after purchasing an additional 3,264 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of General Motors during the third quarter valued at approximately $21,798,000. Vise Technologies Inc. boosted its stake in General Motors by 11.7% in the 3rd quarter. Vise Technologies Inc. now owns 42,670 shares of the auto manufacturer’s stock worth $3,286,000 after purchasing an additional 4,484 shares during the period. Moss Adams Wealth Advisors LLC raised its stake in General Motors by 9.7% during the 3rd quarter. Moss Adams Wealth Advisors LLC now owns 3,691 shares of the auto manufacturer’s stock valued at $284,000 after purchasing an additional 326 shares during the period. Finally, Americana Partners LLC boosted its position in shares of General Motors by 12.1% in the third quarter. Americana Partners LLC now owns 2,921 shares of the auto manufacturer’s stock worth $225,000 after buying an additional 316 shares during the period. Institutional investors own 92.67% of the company’s stock.

General Motors Company Profile

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.

GM’s product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.