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Unveiling 13 Analyst Insights On General Motors

Author: Benzinga Insights | July 10, 2024 01:00pm

Ratings for General Motors (NYSE:GM) were provided by 13 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 6 4 1 2 0
Last 30D 1 0 0 0 0
1M Ago 2 0 0 1 0
2M Ago 0 0 0 0 0
3M Ago 3 4 1 1 0

Analysts have recently evaluated General Motors and provided 12-month price targets. The average target is $57.0, accompanied by a high estimate of $96.00 and a low estimate of $30.00. This upward trend is evident, with the current average reflecting a 5.07% increase from the previous average price target of $54.25.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of General Motors among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Patrick Hummel UBS Raises Buy $64.00 $61.00
Colin Langan Wells Fargo Raises Underweight $32.00 $30.00
Patrick Hummel UBS Raises Buy $61.00 $58.00
John Murphy B of A Securities Maintains Buy $75.00 $75.00
Dan Levy Barclays Raises Overweight $60.00 $55.00
Daniel Roeska Bernstein Announces Outperform $55.00 -
Tom Narayan RBC Capital Raises Outperform $58.00 $56.00
Itay Michaeli Citigroup Raises Buy $96.00 $95.00
Patrick Hummel UBS Raises Buy $58.00 $56.00
Colin Langan Wells Fargo Raises Underweight $30.00 $28.00
Alexander Potter Piper Sandler Raises Neutral $45.00 $44.00
Daniel Ives Wedbush Raises Outperform $55.00 $45.00
Vijay Rakesh Mizuho Raises Buy $52.00 $48.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to General Motors. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of General Motors compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of General Motors's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of General Motors's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on General Motors analyst ratings.

About General Motors

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021. 2023's share was 16.5%. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. It should restart in at least one city in 2024. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

Financial Milestones: General Motors's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: General Motors's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 7.58%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: General Motors's net margin is impressive, surpassing industry averages. With a net margin of 6.9%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): General Motors's ROE excels beyond industry benchmarks, reaching 4.54%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): General Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.08%, the company showcases efficient use of assets and strong financial health.

Debt Management: General Motors's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.84, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: GM

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