GM stock: buy or sell?
August 19th, 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. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Just 1 of our buy setups matches with General Motors stock now:
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||Yes|
|100d MA crossing up 200d MA||No|
Is General Motors stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.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 General Motors closed today at $37.36 and raised a tiny 0.97%.
The auto maker shares raised 0.97% to $37.36 today. Today GM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since last Aug 6th when SMA50d and SMA100d crossed up, GM price slipped $-1.65 per share (-4.23%).
General Motors shares crossed up the SMA line of 200d, closing at $37.36. Last week GM collapsed a scary -7.05% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $41.90 resistance. Since SMA20w and SMA40w crossed up early March, GM price slid a -3.54%.
GM stock price history
GM stock went public on November 18th, 2010 with a price of $27.671. Since then, GM stock surged a 35.00%, with a yearly average of 4.40%. If you had invested right after GM's IPO a $1,000 in GM stock in 2010, it would worth $350.00 today.
1: Adjusted price after possible price splits or reverse-splits.
GM stock historical price chart
GM stock reached 52-week highs on August/1 at $41.90, and all-time highs 2017-10-24 with a price of 43.61.
GM stock price target is $53.90Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 10 price forecasts for the Detroit headquarted company 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 April, when General Motors published its last earnings report, it depreciated an ugly -3.06%. As soon as we get its actual EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw a tiny movement of 1.00% to $147,049.00 M USD. Instead, its profit margin (compared to sales) rose to 5.45%, that is $8,014.00 million. General Motors presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, General Motors TTM sales up to March 2019 were $145,828.00 and income $9,125.00 million dollars. When comparing this TTM figures with the last reported annuality, we can review General Motors business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained constant a lame -0.83%. Similarly, profit margin (net income/revenues) stayed stable at 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 million in revenues for 2019-Q1, a -9.17% less compared to previous quarter. Reported quarter earnings marked $2,157.00 M with a profit margin of 6.18%. Profit margin remained constant a 0.86% compared to previous quarter when profit margin was 5.32%. When comparing revenues to same quarter last year, General Motors sales marked a bad decrease and decreased 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 buy shares of a company, it's always worth to check 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.
The following table compares ownership indicators for other stocks related to General Motors:
|Market cap||$53.1 B||$35.1 B||$6.8 B||$41.0 B||$191.9 B|
|Total shares||1,420.0 M||3,920.0 M||255.6 M||1,760.0 M||1,490.0 M|
|Float shares||1,250.0 M||3,910.0 M||254.7 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%|
|Monday, August 19th, 2019|
|Day range||$37.19 - $37.60|
|Average true range||$1.06|
|50d mov avg||$38.45|
|100d mov avg||$37.87|
|200d mov avg||$37.04|
General Motors performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared General Motors against Ford Motor, Gentex, Honda Motor, , Tesla and Tata Motors in the following table:
General Motors competitorsOne check before trading any stock is to have a look a list of its competitors, in this case for General Motors. We selected 6 companies as General Motors competitors as they are in the same industry or have similar market objectives.
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