Donald Smith & CO. Inc. Takes $125.32 Million Position in General Motors Company $GM

Key Points

• Donald Smith & Co. acquired 1.63 million GM shares worth approximately $125.3 million, making General Motors its 22nd-largest holding and representing about 2.2% of its portfolio.
• GM reported stronger-than-expected quarterly results, with EPS of $3.57 and revenue of $48.03 billion, while analysts maintain a “Moderate Buy” consensus and a $101.41 price target.
• Risks remain despite the positive earnings momentum: NHTSA is investigating nearly 1 million GM pickups and SUVs over alleged engine failures, and insiders have sold more than 1.24 million shares in the past 90 days.

Donald Smith & CO. Inc. purchased a new position in General Motors Company (NYSE:GM - Free Report) TSE: GMM.U in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 1,625,838 shares of the auto manufacturer's stock, valued at approximately $125,320,000. General Motors accounts for about 2.2% of Donald Smith & CO. Inc.'s investment portfolio, making the stock its 22nd biggest holding. Donald Smith & CO. Inc. owned 0.19% of General Motors at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. OneAscent Investment Solutions LLC purchased a new stake in shares of General Motors in the second quarter valued at approximately $328,000. OneAscent Wealth Management LLC acquired a new stake in General Motors in the 2nd quarter valued at $385,000. OneAscent Family Office LLC purchased a new stake in General Motors in the 2nd quarter worth $431,000. OneAscent Financial Services LLC acquired a new position in General Motors during the second quarter worth $886,000. Finally, Allworth Financial LP purchased a new position in General Motors during the second quarter valued at $1,812,000. 92.67% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting General Motors

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

• Positive Sentiment: Analysts lifted some earnings expectations. Zacks Research raised its Q4 2026 EPS forecast to $2.56 from $2.52, while another analyst reportedly boosted full-year FY2026 estimates. GM’s current consensus EPS forecast is $13.29. FY2026 EPS Estimates for General Motors Boosted by Analyst
• Positive Sentiment: GM continues to benefit from better-than-expected earnings. The automaker’s latest quarterly results exceeded both EPS and revenue estimates, with earnings of $3.57 per share on $48.03 billion in revenue. The stock has also gained since that report, supporting near-term investor momentum. General Motors Up Since Last Earnings Report
• Positive Sentiment: Valuation expectations improved. One analysis raised GM’s fair-value estimate from $94.81 to $100.04 per share following mixed reactions to its second-quarter results and guidance. General Motors Fair Value Rises
• Neutral Sentiment: GM is generating higher profits while selling fewer vehicles. That strategy contrasts with Toyota’s volume-focused approach, which is reportedly bringing the rival closer to GM’s long-standing U.S. sales leadership. The development highlights both GM’s improved profitability and potential longer-term market-share risk. GM and Toyota U.S. Auto Sales
• Negative Sentiment: NHTSA opened a probe covering nearly 1 million GM pickups and SUVs. Regulators are reviewing 997,743 vehicles after 499 complaints involving engine failures, including concerns that an earlier recall may not have resolved the problem. The investigation raises potential risks of additional recalls, repair costs, legal exposure and reputational damage. NHTSA Probe Into GM Vehicles
• Negative Sentiment: Longer-term earnings estimates remain mixed. Zacks Research lowered its Q1 2028 EPS forecast to $3.09 from $3.20, signaling some caution about GM’s future earnings trajectory despite the improved near-term estimate.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on GM. TD Cowen lifted their target price on shares of General Motors from $126.00 to $132.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Morgan Stanley raised their price target on shares of General Motors from $100.00 to $101.00 and gave the company an "overweight" rating in a research note on Wednesday, July 22nd. Wedbush reiterated an "outperform" rating and issued a $95.00 price objective on shares of General Motors in a report on Monday, May 11th. UBS Group reiterated a "buy" rating on shares of General Motors in a research note on Wednesday, June 10th. Finally, Evercore reissued an "outperform" rating and set a $100.00 target price on shares of General Motors in a report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.41.

General Motors Trading Up 2.1%

GM opened at $87.98 on Friday. The firm has a market capitalization of $77.20 billion, a price-to-earnings ratio of 44.43, a price-to-earnings-growth ratio of 0.39 and a beta of 1.30. The company's 50 day simple moving average is $82.01 and its two-hundred day simple moving average is $79.58. General Motors Company has a 1-year low of $54.33 and a 1-year high of $91.85. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.14 and a quick ratio of 0.97.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.19 by $0.38. General Motors had a return on equity of 18.18% and a net margin of 1.05%.The business had revenue of $48.03 billion during the quarter, compared to analyst estimates of $47.01 billion. During the same period in the prior year, the business earned $2.53 earnings per share. The business's revenue was up 1.9% compared to the same quarter last year. General Motors has set its FY 2026 guidance at 12.000-14.000 EPS. Analysts expect that General Motors Company will post 13.29 EPS for the current fiscal year.

General Motors Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Friday, September 4th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 0.8%. The ex-dividend date is Friday, September 4th. General Motors's dividend payout ratio is presently 36.36%.

Insiders Place Their Bets

In related news, EVP Grant Michael Dixton sold 40,000 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $88.44, for a total value of $3,537,600.00. Following the completion of the sale, the executive vice president owned 54,992 shares of the company's stock, valued at approximately $4,863,492.48. This represents a 42.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Rory Harvey sold 8,882 shares of the firm's stock in a transaction dated Monday, July 27th. The stock was 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,241,401 shares of company stock worth $106,313,695. 0.44% of the stock is currently owned by company insiders.

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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