Investors Buy General Motors (GM) on Weakness After Insider Selling
Investors purchased shares of General Motors (NYSE:GM) (TSE:GMM.U) on weakness during trading hours on Friday following insider selling activity. $148.06 million flowed into the stock on the tick-up and $84.18 million flowed out of the stock on the tick-down, for a money net flow of $63.88 million into the stock. Of all stocks tracked, General Motors had the 18th highest net in-flow for the day. General Motors traded down ($0.71) for the day and closed at $43.15Specifically, EVP Nysschen Carel J. De sold 123,645 shares of the stock in a transaction on Friday, October 27th. The stock was sold at an average price of $44.59, for a total transaction of $5,513,330.55. Following the transaction, the executive vice president now owns 150,484 shares of the company’s stock, valued at approximately $6,710,081.56. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Charles K. Stevens III sold 265,458 shares of the stock in a transaction on Friday, October 27th. The stock was sold at an average price of $44.49, for a total value of $11,810,226.42. Following the transaction, the chief financial officer now directly owns 326,510 shares in the company, valued at approximately $14,526,429.90. The disclosure for this sale can be found here. In the last three months, insiders have sold 602,741 shares of company stock worth $26,678,072. Corporate insiders own 0.04% of the company’s stock.
A number of brokerages have weighed in on GM. Zacks Investment Research raised General Motors from a “sell” rating to a “hold” rating in a research note on Tuesday, January 9th. Barclays reaffirmed a “buy” rating and issued a $61.00 target price on shares of General Motors in a research report on Tuesday, January 9th. Vetr lowered General Motors from a “hold” rating to a “sell” rating and set a $40.10 target price on the stock. in a research report on Monday, January 1st. Evercore ISI increased their target price on General Motors from $40.00 to $41.38 in a research report on Friday, December 29th. Finally, Royal Bank of Canada raised General Motors from a “sector perform” rating to an “outperform” rating and increased their target price for the stock from $51.00 to $52.00 in a research report on Tuesday, December 19th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $44.07.
The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.94. The firm has a market cap of $61,290.00, a PE ratio of 9.34, a P/E/G ratio of 0.81 and a beta of 1.55.
General Motors (NYSE:GM) (TSE:GMM.U) last released its quarterly earnings data on Tuesday, October 24th. The auto manufacturer reported $1.32 EPS for the quarter, beating the consensus estimate of $1.07 by $0.25. General Motors had a return on equity of 20.95% and a net margin of 2.00%. The company had revenue of $30.48 billion for the quarter, compared to analyst estimates of $29.93 billion. During the same period last year, the company posted $1.72 earnings per share. The firm’s revenue was down 16.6% compared to the same quarter last year. analysts forecast that General Motors will post 6.41 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, December 21st. Shareholders of record on Friday, December 8th were given a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 3.52%. The ex-dividend date was Thursday, December 7th. General Motors’s dividend payout ratio (DPR) is presently 32.90%.
A number of large investors have recently added to or reduced their stakes in GM. Berkshire Hathaway Inc. raised its position in General Motors by 20.0% in the second quarter. Berkshire Hathaway Inc. now owns 60,000,000 shares of the auto manufacturer’s stock valued at $2,095,800,000 after purchasing an additional 10,000,000 shares during the period. Janus Henderson Group PLC raised its position in General Motors by 290.9% in the second quarter. Janus Henderson Group PLC now owns 10,247,171 shares of the auto manufacturer’s stock valued at $357,944,000 after purchasing an additional 7,625,809 shares during the period. Assenagon Asset Management S.A. purchased a new position in General Motors in the third quarter valued at about $202,352,000. Parametric Portfolio Associates LLC raised its position in General Motors by 72.9% in the second quarter. Parametric Portfolio Associates LLC now owns 4,210,479 shares of the auto manufacturer’s stock valued at $147,072,000 after purchasing an additional 1,775,924 shares during the period. Finally, Capital World Investors raised its position in General Motors by 5.0% in the second quarter. Capital World Investors now owns 31,327,192 shares of the auto manufacturer’s stock valued at $1,094,259,000 after purchasing an additional 1,500,500 shares during the period. 73.02% of the stock is currently owned by institutional investors.
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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