GM stock: buy or sell?
October 18th, 2019
General Motors Company, together with its subsidiaries, designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.
Should I buy GM stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with General Motors stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is General Motors stock a buy?
Financial institutions and banks post stock ratings everyday.At Stocks2.com, we gathered 12 ratings published for GM stock in the last month. The general sentiment of these ratings is bullish for GM stock, with 9 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-22||Royal Bank of Canada||n/a||Outperform|
|2019-3-26||Goldman Sachs Group||n/a||Neutral|
|2019-2-7||Royal Bank of Canada||n/a||Outperform|
|2019-2-13||Seaport Global Securities||n/a||Buy|
|2019-1-7||BMO Capital Markets||Market Perform||Outperform|
|2019-1-28||BMO Capital Markets||n/a||n/a|
|2019-1-14||Royal Bank of Canada||n/a||Outperform|
|2019-1-14||BMO Capital Markets||Positive||Outperform|
GM stock analysis
Shares of the Detroit headquarted company closed on October/18 at $36.17 and remained constant a tight -0.06%.
General Motors remained constant a tight -0.06% and closed at $36.17. For the last 19 days when GM stock price broke down the SMA200d line, it slid $-1.31 per share (-3.50%).
Shares of General Motors grew a good 1.69% this week. Late September GM plummed a chilling -7.19% in just one week. Early September GM boosted a cool 5.31% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $41.48 resistance. Since SMA20d and SMA40w crossed up this week, GM price climbed $0.60 per share (1.69%). Since price and 40-weeks moving average lines crossed down late September, GM fell $-1.25 per share (-3.34%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.
GM stock price history
GM stock went public on November 18th, 2010 with a price of $27.391. Since then, GM stock grew a 32.10%, with an average of 4.00% per year. If you had invested right after GM's IPO a $1,000 in GM stock in 2010, it would worth $321.00 today.
1: Adjusted price after possible price splits or reverse-splits.
GM stock historical price chart
GM stock reached 52-week highs on August at $41.48, and all-time highs 2017-10-24 with a price of 43.18.
GM stock price target is $53.90Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 10 price forecasts for GM stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-22||Royal Bank of Canada||Raises Target||n/a||$52.00||-|
|2019-3-26||Goldman Sachs Group||Set Price Target||n/a||$36.00||-|
|2019-2-7||Royal Bank of Canada||Raises Target||$50.00||$52.00||4%|
|2019-1-28||BMO Capital Markets||Raises Target||$79.00||$84.00||6.3%|
|2019-1-14||Royal Bank of Canada||Raises Target||$45.00||$50.00||11.1%|
|2019-1-14||BMO Capital Markets||Raises Target||$6.65||$47.00||606.8%|
|2019-1-11||Buckingham Research||Set Price Target||n/a||$34.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince last April, when General Motors presented its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will update this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, General Motors annual turnover remained stable a slightly fine 1.00% to $147,049.00 million USD from $145,588.00 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) rose a 8.10% to 5.45%. To have an updated view of the financial situation of General Motors, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual General Motors TTM sales up to March 2019 were $145,828.00 and income was $9,125.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review the Detroit headquarted company business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, stayed steady a disappointing -0.83%. Regarding profit margin, General Motors remained stable 0.81% to 5.45%
|2013||$155,430 M||-||$5,350 M3.4%||-|
|2014||$155,929 M||0.32%||$3,949 M2.5%||-26.19%|
|2015||$152,356 M||-2.29%||$9,687 M6.4%||145.30%|
|2016||$166,380 M||9.20%||$9,427 M5.7%||-2.68%|
|2017||$145,588 M||-12.50%||$-3,864.00 M-2.7%||-140.99%|
|2018||$147,049 M||1.00%||$8,014 M5.4%||-307.40%|
|TTM||$145,828 M||-0.83%||$9,125 M6.3%||13.86%|
Quarterly financial resultsGeneral Motors posted $34,878.00 M in revenues for 2019-Q1, a -9.17% decline compared to previous quarter. Reported quarter earnings marked $2,157.00 million with a profit margin of 6.18%. Profit margin stayed steady a 0.86% compared to previous quarter when profit margin was 5.32%. When comparing sales to same quarter last year, General Motors sales marked a lame decrease and slightly fell a -3.38%.
|2017-Q2||$36,980 M||-||$2,430 M6.6%||-|
|2017-Q3||$33,623 M||-9.08%||$-2,981 M-8.9%||-222.67%|
|2017-Q4||$37,715 M||12.17%||$-5,151 M-13.7%||72.79%|
|2018-Q1||$36,099 M||-4.28%||$1,046 M2.9%||-120.31%|
|2018-Q2||$36,760 M||1.83%||$2,390 M6.5%||128.49%|
|2018-Q3||$35,791 M||-2.64%||$2,534 M7.1%||6.03%|
|2018-Q4||$38,399 M||7.29%||$2,044 M5.3%||-19.34%|
|2019-Q1||$34,878 M||-9.17%||$2,157 M6.2%||5.53%|
General Motors ownershipWhen you are planning to invest in shares of a stock, it's always worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For General Motors, 7.30% of all outstanding shares are owned by its staff.
In case of General Motors stock, 78.82% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GM stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$51.7 B||$36.4 B||$7.1 B||$47.0 B||$192.8 B|
|Total shares||1,430.0 M||3,920.0 M||254.8 M||1,760.0 M||1,420.0 M|
|Float shares||1,250.0 M||3,910.0 M||254.2 M||1,760.0 M||1,070.0 M|
|- Institutional holdings (%)||78.8%||7.6%||88.4%||2.1%||0.8%|
|- Insider holdings (%)||7.3%||23.8%||0.4%||0.0%||0.0%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, October 18th, 2019|
|Day range||$36.01 - $36.37|
|Average true range||$0.96|
|50d mov avg||$36.90|
|100d mov avg||$37.25|
|200d mov avg||$37.24|
General Motors performanceTo measure stock performance is always good to compare with competitors or related stocks. We compared General Motors against Ford Motor, Gentex, Honda Motor, , Tesla and Tata Motors in the following table:
General Motors competitorsWe selected a few stocks to conform a list of General Motors competitors to examine if you are interested in investing in GM:
Latest GM stock news
- InvestorPlaceGeneral Motors Earnings Preview: What GM Stock Investors Can ExpectJuly 31, 2019
- InvestorPlace3 Big Stock Charts for Thursday: Eastman Chemical, Verizon and General MotorsJuly 18, 2019
- InvestorPlaceGeneral Motors Air Bag Footdragging Adds Unnecessary Risk To GM StockJune 24, 2019
- InvestorPlaceWhy General Motors Stock Is Stuck in No-Man’s LandMay 7, 2019
- InvestorPlaceWill Earnings Even Matter for General Motors Stock?April 25, 2019