Erste Group Bank Forecasts General Motors FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for General Motors to $13.45, above its prior estimate of $13.40 and the consensus estimate of $13.29. The bank projects FY2027 EPS of $15.07.
• Analyst sentiment remains favorable, with GM carrying a “Moderate Buy” consensus rating and an average price target of $101.41 versus its reported share price of $86.31.
• GM recently beat quarterly earnings and revenue expectations and declared a quarterly dividend of $0.18 per share, but faces a key risk from an NHTSA engineering analysis of nearly 1 million vehicles over potential L87 V-8 engine failures.

General Motors Company (NYSE:GM - Free Report) TSE: GMM.U - Equities researchers at Erste Group Bank boosted their FY2026 earnings estimates for General Motors in a report released on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now expects that the auto manufacturer will earn $13.45 per share for the year, up from their prior forecast of $13.40. The consensus estimate for General Motors' current full-year earnings is $13.29 per share. Erste Group Bank also issued estimates for General Motors' FY2027 earnings at $15.07 EPS.

Several other brokerages have also recently weighed in on GM. Benchmark restated a "buy" rating on shares of General Motors in a report on Tuesday, July 21st. Tigress Financial increased their price target on General Motors from $92.00 to $130.00 and gave the company a "strong-buy" rating in a report on Tuesday, July 28th. Barclays lifted their price objective on General Motors from $105.00 to $110.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 22nd. Evercore reissued an "outperform" rating and set a $100.00 price objective on shares of General Motors in a research note on Monday, May 4th. Finally, TD Cowen upped their target price on General Motors from $126.00 to $132.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $101.41.

General Motors Stock Up 0.0%

Shares of NYSE GM opened at $86.31 on Monday. The stock has a market cap of $75.73 billion, a PE ratio of 43.59, a P/E/G ratio of 0.39 and a beta of 1.30. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 1.42. General Motors has a 12-month low of $54.33 and a 12-month high of $91.85. The company has a 50-day moving average of $82.54 and a 200 day moving average of $79.63.

General Motors (NYSE:GM - Get Free Report) TSE: GMM.U last posted its quarterly earnings results on Tuesday, July 21st. The auto manufacturer reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.19 by $0.38. The firm had revenue of $48.03 billion for the quarter, compared to the consensus estimate of $47.01 billion. General Motors had a net margin of 1.05% and a return on equity of 18.18%. The company's revenue for the quarter was up 1.9% on a year-over-year basis. During the same period last year, the firm posted $2.53 earnings per share. General Motors has set its FY 2026 guidance at 12.000-14.000 EPS.

Hedge Funds Weigh In On General Motors

Several large investors have recently modified their holdings of the business. Laurel Wealth Advisors LLC purchased a new stake in General Motors in the 4th quarter valued at about $25,000. Evergreen Advisors LLC purchased a new position in General Motors during the first quarter worth about $26,000. SouthState Bank Corp increased its position in shares of General Motors by 101.7% during the fourth quarter. SouthState Bank Corp now owns 351 shares of the auto manufacturer's stock valued at $29,000 after acquiring an additional 177 shares during the last quarter. Kelleher Financial Advisors acquired a new stake in shares of General Motors during the third quarter valued at about $29,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of General Motors in the 4th quarter valued at approximately $30,000. Institutional investors and hedge funds own 92.67% of the company's stock.

Insider Buying and Selling at General Motors

In other news, EVP Rory Harvey sold 8,882 shares of General Motors stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $86.95, for a total transaction of $772,289.90. Following the sale, the executive vice president owned 28,513 shares of the company's stock, valued at approximately $2,479,205.35. The trade was a 23.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Christopher Hatto sold 6,895 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $90.00, for a total value of $620,550.00. Following the completion of the transaction, the chief accounting officer owned 18,899 shares in the company, valued at $1,700,910. This represents a 26.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 669,486 shares of company stock worth $59,205,537. Insiders own 0.44% of the company's stock.

General Motors Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.18 per share. The ex-dividend date is Friday, September 4th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.8%. General Motors's dividend payout ratio (DPR) is currently 36.36%.

General Motors News Roundup

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: Ultium Cells is recalling laid-off workers at its Lordstown, Ohio, battery plant as orders from GM increase. The development suggests improving utilization of GM’s EV battery operations and could support progress toward better EV economics. Ultium Cells in Lordstown recalls laid-off workers as GM battery orders rise
• Positive Sentiment: Analyst coverage remains constructive: brokerages reportedly assign GM a consensus price target of $101.41, implying further upside from current levels if the company meets earnings expectations. General Motors Company Receives $101.41 Consensus PT from Brokerages
• Positive Sentiment: Industry analysts cite resilient U.S. vehicle demand, evolving EV trends and new tax benefits as potential supports for domestic automakers, including GM. 4 Domestic Auto Biggies Poised to Benefit From Industry Resilience
• Positive Sentiment: From a technical perspective, GM is holding support near $86 and forming a bullish-flag pattern, which may attract momentum-oriented investors if resistance is broken. Tesla, Ford and GM Stocks Test Key Technical Boundaries
• Neutral Sentiment: GM is giving first-time franchise owners an opportunity to take over a troubled dealership, a potentially positive distribution initiative but one unlikely to materially affect near-term earnings. General Motors gives first-time dealers a chance to turn around troubled store
• Neutral Sentiment: Reports on GM’s V8-engine standardization, experimental engines and planned 2027 model updates provide product and strategy context but do not signal a clear immediate earnings impact. GM is making major changes to some of its biggest models in 2027
• Negative Sentiment: NHTSA opened an engineering analysis covering 997,743 GM pickups and SUVs with the L87 V-8 engine, including the Chevrolet Silverado 1500, GMC Yukon and Cadillac Escalade. Potential engine failures could lead to recalls, repair costs, warranty expense and reputational damage, making this the principal near-term risk for GM. General Motors Faces Safety Probe Over Engine Failures in Nearly 1 Million Vehicles

General Motors Company Profile

General Motors Company NYSE: GM is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world's largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM's operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.

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