General Motors Company (NYSE:GM) has a beta of 1.44, a 12-month trailing P/E ratio of 9.36, and a growth ratio of 1.64. The stock’s Relative Strength Index (RSI) is 73.39, with weekly volatility at 3.67% and ATR at 1.40. The GM stock’s 52-week price range has touched low of $14.32 and a $41.90 high. Its shares traded higher over the last trading session, gaining 4.97% on 06/05/20. The shares fell to a low of $29.81 before closing at $30.61. Intraday shares traded counted 29.23 million, which was -54.74% lower than its 30-day average trading volume of 18.89M. GM’s previous close was $29.16 while the outstanding shares total 1.43B.
Investors have identified the Auto Manufacturers 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 $41.73 billion, 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 38.51 billion on their books with 45.06 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 97699000000 million total, with 91292000000 million as their total liabilities.
GM were able to record -3.4 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 18.22 billion. In cash movements, the company had a total of 1.56 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 32.71 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.63% coming in sequential stages and their sales for the third quarter increasing by 5.76%.
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 30.08 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.63 billion. This allows shareholders to hold on to 1.43B with the revenue now reading 0.17 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.18 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.82 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.
Is the stock of GM attractive?
In related news, Executive Vice President, Blissett Julian G. bought 9,300 shares of the company’s stock in a transaction that recorded on May 29. The purchase was performed at an average price of 26.00, for a total value of 241,800. As the purchase deal closes, the Director, RUSSO PATRICIA F now bought 12,700 shares of the company’s stock, valued at 294,386. Also, Executive Vice President, Tsien Matthew bought 22,400 shares of the company’s stock in a deal that was recorded on Mar 25. The shares were cost at an average price of 22.97 per share, with a total market value of 514,528. Following this completion of disposal, the Director, SOLSO THEODORE M now holds 1,561 shares of the company’s stock, valued at 49,983. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
13 out of 18 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on General Motors Company. 0 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 $33.94.