General Motors (NYSE:GM) Sees Large Volume Increase After Earnings Beat

Shares of General Motors (NYSE:GM) (TSE:GMM.U) saw unusually-strong trading volume on Tuesday following a better than expected earnings announcement. Approximately 13,064,281 shares traded hands during mid-day trading, a decline of 17% from the previous session’s volume of 15,674,671 shares.The stock last traded at $46.43 and had previously closed at $49.56.

The auto manufacturer reported $3.06 earnings per share (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 the consensus estimate of $45.13 billion. General Motors had a net margin of 6.13% and a return on equity of 14.40%. The firm’s quarterly revenue was up 7.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.91 earnings per share.

General Motors Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 19th. Shareholders of record on Friday, September 6th will be given a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.03%. General Motors’s dividend payout ratio (DPR) is currently 5.87%.

General Motors declared that its Board of Directors has authorized a share repurchase program on Tuesday, June 11th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the auto manufacturer to buy up to 10.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on GM. Barclays upped their price objective on shares of General Motors from $55.00 to $60.00 and gave the stock an “overweight” rating in a research report on Friday, April 26th. Wells Fargo & Company upped their price objective on shares of General Motors from $30.00 to $32.00 and gave the stock an “underweight” rating in a research report on Tuesday, June 25th. StockNews.com upgraded shares of General Motors from a “hold” rating to a “buy” rating in a research report on Saturday, June 1st. Wedbush upped their price target on shares of General Motors from $45.00 to $55.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 24th. Finally, UBS Group upped their price target on shares of General Motors from $61.00 to $64.00 and gave the stock a “buy” rating in a research report on Wednesday, July 10th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $55.96.

Insider Activity at General Motors

In related news, President Mark L. Reuss sold 14,858 shares of the company’s stock in a transaction dated Friday, June 7th. The shares were 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 owns 162,049 shares of the company’s stock, valued at approximately $7,455,874.49. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, CEO Mary T. Barra sold 626,316 shares of the stock in a transaction that occurred on Tuesday, May 28th. The shares were sold at an average price of $43.46, for a total value of $27,219,693.36. Following the completion of the sale, the chief executive officer now owns 1,198,648 shares of the company’s stock, valued at approximately $52,093,242.08. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, President Mark L. Reuss sold 14,858 shares of the stock in a transaction that occurred on Friday, June 7th. The shares were 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 disclosure for this sale can be found here. In the last quarter, 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 Trading of General Motors

Hedge funds have recently made changes to their positions in the company. LifeSteps Financial Inc. purchased a new position in shares of General Motors during the 1st quarter worth approximately $25,000. Highlander Capital Management LLC purchased a new position in shares of General Motors during the 4th quarter worth approximately $27,000. Fortitude Family Office LLC boosted its position in shares of General Motors by 56.1% during the 2nd quarter. Fortitude Family Office LLC now owns 626 shares of the auto manufacturer’s stock worth $29,000 after purchasing an additional 225 shares during the period. Cape Investment Advisory Inc. boosted its position in shares of General Motors by 75.9% during the 4th quarter. Cape Investment Advisory Inc. now owns 832 shares of the auto manufacturer’s stock worth $30,000 after purchasing an additional 359 shares during the period. Finally, Montag A & Associates Inc. purchased a new position in shares of General Motors during the 1st quarter worth approximately $30,000. Hedge funds and other institutional investors own 92.67% of the company’s stock.

General Motors Price Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.97 and a current ratio of 1.16. The stock has a market cap of $53.00 billion, a PE ratio of 5.69, a PEG ratio of 0.51 and a beta of 1.43. The stock’s 50-day moving average is $46.51 and its two-hundred day moving average is $42.81.

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.