Nomura Lowers General Motors (NYSE:GM) to Reduce

Nomura downgraded shares of General Motors (NYSE:GM) (TSE:GMM.U) from a neutral rating to a reduce rating in a research report sent to investors on Monday morning, Marketbeat reports. The firm currently has $34.00 price target on the auto manufacturer’s stock.

Several other brokerages have also weighed in on GM. Deutsche Bank Aktiengesellschaft increased their target price on General Motors from $44.00 to $50.00 and gave the stock a hold rating in a research report on Tuesday, April 23rd. Royal Bank of Canada increased their price target on General Motors from $54.00 to $56.00 and gave the stock an overweight rating in a research note on Tuesday, April 23rd. StockNews.com cut General Motors from a buy rating to a hold rating in a research note on Wednesday, July 24th. Piper Sandler raised their target price on General Motors from $44.00 to $45.00 and gave the company a neutral rating in a research note on Wednesday, April 24th. Finally, Barclays raised their target price on General Motors from $55.00 to $60.00 and gave the company an overweight rating in a research note on Friday, April 26th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, General Motors presently has an average rating of Moderate Buy and an average price target of $55.27.

General Motors Stock Performance

GM stock opened at $40.65 on Monday. The company has a current ratio of 1.18, a quick ratio of 0.99 and a debt-to-equity ratio of 1.23. The firm has a market cap of $46.38 billion, a P/E ratio of 4.97, a P/E/G ratio of 0.44 and a beta of 1.43. General Motors has a 12-month low of $26.30 and a 12-month high of $50.50. The stock’s 50 day simple moving average is $46.23 and its 200 day simple moving average is $43.40.

General Motors (NYSE:GM) (TSE:GMM.U) last issued its earnings results on Tuesday, July 23rd. The auto manufacturer reported $3.06 earnings per share for the quarter, topping the consensus estimate of $2.67 by $0.39. General Motors had a return on equity of 15.77% and a net margin of 6.22%. The firm had revenue of $47.97 billion for the quarter, compared to analyst estimates of $45.13 billion. During the same period last year, the company earned $1.91 earnings per share. The firm’s revenue for the quarter was up 7.2% on a year-over-year basis. As a group, equities research analysts predict that General Motors will post 9.94 EPS for the current year.

General Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 19th. Investors of record on Friday, September 6th will be paid a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.18%. The ex-dividend date of this dividend is Friday, September 6th. General Motors’s dividend payout ratio is currently 5.87%.

General Motors announced that its Board of Directors has initiated a stock repurchase program on Tuesday, June 11th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the auto manufacturer to purchase up to 10.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other news, President Mark L. Reuss sold 14,858 shares of the firm’s stock in a transaction dated Friday, June 7th. The stock was sold at an average price of $46.01, for a total transaction of $683,616.58. Following the completion of the sale, the president now directly owns 162,049 shares of the company’s stock, valued at approximately $7,455,874.49. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, President Mark L. Reuss sold 14,858 shares of the firm’s stock in a transaction dated Friday, June 7th. The stock was sold at an average price of $46.01, for a total transaction of $683,616.58. Following the completion of the sale, the president now directly owns 162,049 shares of the company’s stock, valued at approximately $7,455,874.49. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mary T. Barra sold 626,316 shares of the firm’s stock in a transaction dated Tuesday, May 28th. The stock was sold at an average price of $43.46, for a total value of $27,219,693.36. Following the sale, the chief executive officer now directly owns 1,198,648 shares of the company’s stock, valued at $52,093,242.08. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,152,621 shares of company stock valued at $51,818,111. Corporate insiders own 0.72% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Capital World Investors raised its stake in shares of General Motors by 14.6% in the 1st quarter. Capital World Investors now owns 48,767,573 shares of the auto manufacturer’s stock valued at $2,211,609,000 after acquiring an additional 6,201,777 shares in the last quarter. Putnam Investments LLC grew its holdings in General Motors by 16.8% in the 4th quarter. Putnam Investments LLC now owns 20,237,820 shares of the auto manufacturer’s stock valued at $726,942,000 after buying an additional 2,905,689 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its holdings in General Motors by 21.9% in the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 18,097,486 shares of the auto manufacturer’s stock valued at $650,062,000 after buying an additional 3,247,050 shares during the last quarter. Norges Bank acquired a new stake in General Motors in the 4th quarter valued at approximately $602,280,000. Finally, Franklin Resources Inc. grew its holdings in General Motors by 12.0% in the 4th quarter. Franklin Resources Inc. now owns 13,731,249 shares of the auto manufacturer’s stock valued at $493,226,000 after buying an additional 1,472,297 shares during the last quarter. 92.67% of the stock is owned by institutional investors.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.