Shares of General Motors Company (NYSE:GM) recorded 7.05% gain during trading session on January 11th, 2019. The script traded as low as $36.25 and last traded at $37.18. 32.39 million shares changed exchanged hands during trading, a drop of -146.66% from the 30-day average session volume of 13.13M shares. The firm had previously closed at $34.73. The company has $1.32B outstanding shares, a price-to-earnings ratio of 6.31, price-to-earnings-growth ratio of 0.33 and a beta of 1.21. The company has a RSI of 62.99, ATR of 1.47 and a volatility of 3.55% this week. GM has a 52 week low price of $30.56 and a 52 week high price of $45.52.
Investors have identified the tech company General Motors Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 49.02B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
General Motors Company (GM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GM, the company has in raw cash 18.44 billion on their books with 25.15 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 74.85 billion total, with 14 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
GM were able to record 10.39 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 3.01 billion. In cash movements, the company had a total of 9.23 billion as operating cash flow.
Potential earnings growth for General Motors Company (GM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, General Motors Company recorded a total of 35.79 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.06% coming in sequential stages and their sales for the third quarter reducing by -0.03%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 31.6 billion trying to sell their products during the last quarter, with the result yielding a gross income of 4.19 billion. This allows shareholders to hold on to 1.32B with the revenue now reading 2534000000 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.21 cents a share).
Is the stock of GM attractive?
Having a look at the company’s valuation, the company is expected to record 5.86 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GM sounds very interesting.
In related news, Executive Vice President Batey Alan S. sold 215,685 shares of the company’s stock in a transaction that recorded on June 1st, 2019. The sale was performed at an average price of 43.01, for a total value of 9,276,798. As the sale deal closes, the Executive Vice President & CFO Batey Alan S. now sold 35,000 shares of the company’s stock, valued at 1,263,500. Also, Director UAW Retiree Medical Benefits T sold 40,000,000 shares of the company’s stock in a deal that was recorded on March 2nd, 2019. The shares were sold at an average price of 39.71 per share, with a total market value of 100,150,000. Following this completion of acquisition, the VP, Controller & CAO now holds 8,461 shares of the company’s stock, valued at 355,870. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.22%.
5 out of 21 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on General Motors Company stock. 1 analysts has assigned a Sell rating on the GM stock. The 12-month mean consensus price target for the company’s shares has been set at $44.28.