What happened Shares of General Motors (GM 0.60%) were trading lower on Thursday, amid a broader decline in consumer discretionary stocks triggered by investor worries about rising COVID-19 cases in U.S. states that have reopened. As of noon EDT, GM's shares were down about 6.4% from Wednesday's closing price.
Full Answer
Is General Motors worth $95 a share?
Johnson's peer at Bank of America, John Murphy, enacted a series of adjustments in recommendations and price targets for several automobile stocks. One was General Motors; he now believes the stock is worth $95 per share, down a bit from his previous price target of $100.
Is General Motors (GM) a long idea?
General Motors (GM) is this week’s Long Idea. I first made General Motors a Long Idea in March 2018. I reiterated the pick in November 2018 , July 2019, and again in January 2020. Since March 2018, General Motors’ stock (-29%) has underperformed the S&P 500 (+13%).
Is General Motors’ stock undervalued?
Since March 2018, General Motors’ stock (-29%) has underperformed the S&P 500 (+13%). The stock remains undervalued and, given the COVID-driven price decline, offers significant upside.
Should General Motors put its money where its mouths are?
The hot action in the vehicle sector these days is with more pure-play EV stocks like Tesla or Nio. Incumbents such as General Motors will need to really put their money where their mouths are with such products if they're going to bring the bulls back to any extent.
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Why did General Motors stock fall?
The company's stock is reeling as auto investors worry that sky-high inflation and the Federal Reserve's aggressive interest rate hikes could put too much pressure on the U.S. economy. The automotive stock was down by 7.6% as of 2:34 p.m. ET.
What happened to General Motors stock in 2009?
Isn't it? The old GM stock stopped trading on the New York Stock Exchange on June 1, 2009, the day that GM filed for bankruptcy. Each share of GM stock became a share in Motors Liquidation. While it was widely reported that the shares were worthless, those shares still traded, then and now, over the counter.
Is GM a good stock to buy 2022?
At the current market price of about $39 per share, GM stock trades at just about 5x the mid-point of projected 2022 earnings. Growth is also likely to pick up a bit this year, with revenue rising by about 20% per our estimates.
When did General Motors start declining?
General Motors is 110 years old. Founded in 1908, GM rose to dominate the US auto industry. But it declined in the 1980s and 1990s, and in 2009 it was bailed out and went bankrupt. By 2019, however, the definitive American corporation had recovered.
Did GM shareholders lose everything?
DETROIT (Reuters) - General Motors Corp on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.
Did GM pay back its bailout?
In total, GM received $52 billion from the U.S. government, but only $6.7 billion of this amount was considered a loan. The company already paid back $2 billion, so this $4.7 billion is the last payment.
Who owns the most GM stock?
Top 10 Owners of General Motors CoStockholderStakeShares ownedThe Vanguard Group, Inc.6.84%99,786,914Capital Research & Management Co....5.57%81,227,171Capital Research & Management Co....5.12%74,587,645BlackRock Fund Advisors4.56%66,491,7866 more rows
How high will GM stock go?
AIPickup expected the average GM future stock price to hit $39.91 in 2022, falling to $38.82 in 2023, $38.35 in 2024 and $34.48 in 2025.
Is GM a buy Hold or Sell?
Is GM Stock A Buy, Sell, or Hold? GM is a Hold.
What did General Motors do wrong?
Bankruptcy the only option In just four years, from 2005 to 2009, the company netted $51 billion in losses. Any company other than GM would have entered the history of defunct companies in 2009. The situation was so bad then that it was bleeding hundreds of millions of dollars in cash every single day.
How GM lost its way?
GM's U.S. market share had declined to 22% from 52% in the early 1960s. There were too many brands, too much debt, a cumbersome union contract as big as a phone book, and an enormous dealer network built for the glory years of yesterday instead of the market share of today.
When did GM go downhill?
Getting the new GM up and running Annual vehicle sales in 2009 had fallen to a staggering 10 million, a harrowing plunge for a market that had peaked above 17 million in prior years.
Though the company boosted guidance, investors focused on an earnings miss this quarter
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years.
What happened
General Motors ( NYSE:GM) reported its second-quarter 2021 earnings today, and the stock is reacting strongly. Revenue of $34.2 billion handily beat expectations of about $31 billion, but earnings per share came in short of estimates, which is what investors appear to be focusing on today. As of 12:50 p.m.
So what
Strong vehicle sales in the U.S. were led by Chevrolet trucks and crossovers.
Now what
GM did give investors some items of good news looking ahead. In a letter to shareholders, GM CEO Mary Barra said the company now expects full-year adjusted earnings before interest and taxes (EBIT) to be $12.5 billion at the midpoint of its range, compared to a previous midpoint estimate of $10.5 billion.
A prominent hedge fund manager threw in the towel
John Rosevear is the senior auto specialist for Fool.com. John has been writing about the auto business and investing for over 20 years, and for The Motley Fool since 2007. Follow @john__rosevear
What happened
Shares of General Motors ( NYSE:GM) are falling today, down 5.8% as of 1 p.m. EDT, following disappointing U.S. auto sales results for April and news that a prominent hedge fund manager had sold his stake in GM.
So what
GM no longer releases monthly sales results for the U.S., but you don't need official numbers to know that April was grim. With auto factories -- and many dealers -- shut down amid the COVID-19 pandemic, U.S. auto sales likely fell by 50% to 55% in April, based on estimates from Cox Automotive, Edmunds, and TrueCar subsidiary ALG.
Now what
GM will report its first-quarter earnings results before the market opens on Wednesday, May 6. They may be somewhat better than expected: Auto investors have taken note of the fact that unlike rival Ford Motor, GM hasn't yet warned investors to expect a loss.
How much did General Motors repurchase?
Before suspending repurchases, General Motors repurchased $10.7 billion (30% of current market cap) over the past five years and is authorized to purchase up to ~$3.4 billion more. A return to repurchasing shares once the economy stabilizes, or even returns to growth, would provide additional yield for investors.
When will General Motors make the first electric pickup?
This facility is expected to produce a variety of pickups and SUVs with General Motors’ first all-electric pickup scheduled for production in late 2021.
How many countries does General Motors have?
General Motors has manufacturing, assembly, distribution, office, or warehousing operations in 32 countries. In the U.S. alone, the company has 32 plants and facilities. General Motors uses its size to reduce the cost of implementing technological changes across different product lines in various markets.
Is General Motors a strong company?
The overall growth in the economy should lead to a rebound in consumer activity, which will drive demand for automobiles. General Motors’ Core Business Is Strong. Despite the decline in core earnings noted above, General Motors’ full-size trucks, crossovers, and Cadillac brand are strong and are growing market share.
Is General Motors profitable in 2020?
For reference, global auto sales are expected to fall 22% YoY in 2020. General Motors’ Profitability Is Among the Best. General Motors’ profitability was superior to most competitors before the crisis, and the firm is well-positioned to return to profit growth when the economy recovers.
