General Motors (NYSE:GM) Downgraded by Morgan Stanley to Underweight

Morgan Stanley lowered shares of General Motors (NYSE:GM) (TSE:GMM.U) from an equal weight rating to an underweight rating in a research report sent to investors on Wednesday morning, Marketbeat reports. They currently have $42.00 target price on the auto manufacturer’s stock, down from their previous target price of $47.00.

A number of other analysts also recently weighed in on GM. Nomura Securities raised shares of General Motors to a strong sell rating in a research report on Monday, August 5th. Nomura cut shares of General Motors from a neutral rating to a reduce rating and set a $34.00 price objective on the stock. in a report on Monday, August 5th. Wells Fargo & Company decreased their target price on shares of General Motors from $34.00 to $33.00 and set an underweight rating for the company in a research note on Tuesday, September 10th. Wedbush reissued an outperform rating and issued a $55.00 price target on shares of General Motors in a research report on Wednesday, July 24th. Finally, StockNews.com lowered General Motors from a buy rating to a hold rating in a research report on Wednesday, July 24th. Four analysts have rated the stock with a sell rating, six have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, General Motors currently has an average rating of Hold and a consensus target price of $54.92.

General Motors Stock Performance

Shares of GM opened at $46.48 on Wednesday. The company has a 50-day simple moving average of $46.02 and a two-hundred day simple moving average of $45.51. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.18 and a quick ratio of 0.99. The firm has a market capitalization of $53.03 billion, a PE ratio of 5.68, a price-to-earnings-growth ratio of 0.56 and a beta of 1.43. General Motors has a one year low of $26.30 and a one year high of $50.50.

General Motors (NYSE:GM) (TSE:GMM.U) last released its earnings results on Tuesday, July 23rd. The auto manufacturer reported $3.06 EPS for the quarter, beating analysts’ consensus estimates of $2.67 by $0.39. The company had revenue of $47.97 billion during the quarter, compared to analysts’ expectations of $45.13 billion. General Motors had a return on equity of 15.77% and a net margin of 6.22%. The firm’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.91 EPS. On average, analysts anticipate that General Motors will post 9.95 EPS for the current fiscal year.

General Motors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 19th. Investors of record on Friday, September 6th were issued a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.03%. The ex-dividend date was Friday, September 6th. General Motors’s dividend payout ratio is currently 5.87%.

General Motors announced that its Board of Directors has authorized a share repurchase plan on Tuesday, June 11th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the auto manufacturer to purchase up to 10.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Insider Activity

In other General Motors news, EVP Rory Harvey sold 12,795 shares of the stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $49.02, for a total value of $627,210.90. Following the transaction, the executive vice president now owns 8,513 shares of the company’s stock, valued at $417,307.26. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other General Motors news, EVP Rory Harvey sold 12,795 shares of the company’s stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $49.02, for a total value of $627,210.90. Following the completion of the transaction, the executive vice president now directly owns 8,513 shares in the company, valued at $417,307.26. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Paul A. Jacobson purchased 25,000 shares of the business’s stock in a transaction on Friday, July 26th. The stock was acquired at an average price of $44.11 per share, with a total value of $1,102,750.00. Following the purchase, the chief financial officer now directly owns 261,872 shares in the company, valued at approximately $11,551,173.92. The disclosure for this purchase can be found here. Insiders own 0.72% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. SJS Investment Consulting Inc. grew its position in General Motors by 34.5% in the second quarter. SJS Investment Consulting Inc. now owns 792 shares of the auto manufacturer’s stock worth $37,000 after acquiring an additional 203 shares in the last quarter. Fortitude Family Office LLC boosted its position in General Motors by 56.1% in the 2nd quarter. Fortitude Family Office LLC now owns 626 shares of the auto manufacturer’s stock valued at $29,000 after buying an additional 225 shares during the period. SeaCrest Wealth Management LLC grew its stake in General Motors by 3.5% in the 2nd quarter. SeaCrest Wealth Management LLC now owns 6,804 shares of the auto manufacturer’s stock worth $316,000 after acquiring an additional 227 shares in the last quarter. Institute for Wealth Management LLC. raised its stake in shares of General Motors by 0.6% during the second quarter. Institute for Wealth Management LLC. now owns 36,624 shares of the auto manufacturer’s stock valued at $1,702,000 after acquiring an additional 230 shares in the last quarter. Finally, Beech Hill Advisors Inc. grew its stake in General Motors by 1.6% in the second quarter. Beech Hill Advisors Inc. now owns 15,233 shares of the auto manufacturer’s stock worth $708,000 after purchasing an additional 233 shares in the last quarter. Hedge funds and other institutional investors own 92.67% of the company’s stock.

General Motors Company Profile

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.