General Motors Company (NYSE: GM) stock fell -1.74% on Friday to $36.13 against a previous-day closing price of $36.77. With 13.01 million shares changed hands, the volume of the stock remained lighter than its average volume of 16.29 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $36.96 whereas the lowest price it dropped to was $36.11. The 52-week range on GM shows that it touched its highest point at $67.21 and its lowest point at $30.33 during that stretch. It currently has a 1-year price target of $52.30. Beta for the stock currently stands at 1.28.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GM was up-trending over the past week, with a rise of 8.37%, but this was up by 12.24% over a month. Three-month performance dropped to -6.03% while six-month performance fell -31.48%. The stock lost -36.65% in the past year, while it has lost -38.38% so far this year. A look at the trailing 12-month EPS for GM yields 5.26 with Next year EPS estimates of 6.39. For the next quarter, that number is 1.96. This implies an EPS growth rate of 54.70% for this year and -6.42% for next year. EPS is expected to grow by 2.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.20%.
Float and Shares Shorts:
At present, 1.46 billion GM shares are outstanding with a float of 1.39 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 31.25 million, which was 2.14% higher than short shares on Jun 14, 2022. In addition to Ms. Mary T. Barra as the firm’s Chairman & CEO, Mr. Mark L. Reuss serves as its Pres.
Through their ownership of 83.32% of GM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.80% of GM, in contrast to 37.60% held by mutual funds. Shares owned by individuals account for 14.74%. As the largest shareholder in GM with 6.84% of the stake, The Vanguard Group, Inc. holds 99,786,914 shares worth 99,786,914. A second-largest stockholder of GM, Capital Research & Management Co, holds 81,227,171 shares, controlling over 5.57% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in GM, holding 74,587,645 shares or 5.12% stake. With a 2.65% stake in GM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 38,690,186 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 2.22% of GM stock, is the second-largest Mutual Fund holder. It holds 32,434,128 shares valued at 1.03 billion. Vanguard 500 Index Fund holds 2.21% of the stake in GM, owning 32,272,496 shares worth 1.02 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GM since 24 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GM analysts setting a high price target of $95.00 and a low target of $29.00, the average target price over the next 12 months is $50.39. Based on these targets, GM could surge 162.94% to reach the target high and fall by -19.73% to reach the target low. Reaching the average price target will result in a growth of 39.47% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GM will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $7.30 being high and $5.86 being low. For GM, this leads to a yearly average estimate of $6.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. General Motors Company surprised analysts by -$0.09 when it reported $1.14 EPS against a consensus estimate of $1.23. The surprise factor in the prior quarter was $0.44. Based on analyst estimates, the high estimate for the next quarter is $2.44 and the low estimate is $1.69. The average estimate for the next quarter is thus $1.96.
Summary of Insider Activity:
Insiders traded GM stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 10,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 1,213,819 while 785,753 shares were sold.