General Motors (NYSE:GM) Releases Earnings Results, Beats Estimates By $0.48 EPS

Key Points

• General Motors reported earnings of $2.80 per share, surpassing analysts' estimates of $2.32 by $0.48, despite a slight year-over-year revenue decline of 0.3% to $48.59 billion.
• The company announced a quarterly dividend of $0.15 per share, with an upcoming payout date of December 18th, reflecting an annualized yield of 1.0%.
• Analysts have increased their price targets for GM, with Mizuho raising it to $67.00 and UBS raising it to $81.00, indicating a generally positive outlook for the stock.

General Motors (NYSE:GM - Get Free Report) TSE: GMM.U issued its earnings results on Tuesday. The auto manufacturer reported $2.80 earnings per share for the quarter, topping analysts' consensus estimates of $2.32 by $0.48, Zacks reports. General Motors had a return on equity of 12.98% and a net margin of 2.54%.The company had revenue of $48.59 billion for the quarter, compared to analyst estimates of $44.60 billion. During the same period in the prior year, the firm earned $2.96 earnings per share. General Motors's revenue for the quarter was down .3% on a year-over-year basis. General Motors updated its FY 2025 guidance to 9.750-10.500 EPS.

General Motors Trading Down 0.7%

Shares of General Motors stock opened at $57.95 on Tuesday. General Motors has a 1 year low of $41.60 and a 1 year high of $62.14. The firm has a market cap of $55.17 billion, a PE ratio of 9.20, a P/E/G ratio of 1.72 and a beta of 1.33. The stock has a fifty day moving average price of $58.13 and a 200-day moving average price of $52.24. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.22 and a quick ratio of 1.05.

General Motors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 18th. Stockholders of record on Friday, December 5th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, December 5th. This represents a $0.60 annualized dividend and a dividend yield of 1.0%. General Motors's dividend payout ratio (DPR) is currently 9.52%.

Insiders Place Their Bets

In other news, EVP Rory Harvey sold 6,600 shares of the firm's stock in a transaction on Friday, September 26th. The stock was sold at an average price of $61.95, for a total transaction of $408,870.00. Following the completion of the sale, the executive vice president directly owned 8,513 shares of the company's stock, valued at $527,380.35. This trade represents a 43.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Mary T. Barra sold 753,720 shares of the firm's stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $59.95, for a total value of $45,185,514.00. Following the sale, the chief executive officer directly owned 433,527 shares of the company's stock, valued at approximately $25,989,943.65. This represents a 63.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,074,824 shares of company stock valued at $122,377,213. 0.54% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Viking Global Investors LP grew its stake in shares of General Motors by 81.1% during the 2nd quarter. Viking Global Investors LP now owns 13,018,874 shares of the auto manufacturer's stock worth $640,659,000 after acquiring an additional 5,830,050 shares during the period. Ameriprise Financial Inc. grew its stake in shares of General Motors by 8.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 5,699,105 shares of the auto manufacturer's stock worth $280,457,000 after acquiring an additional 424,396 shares during the period. Man Group plc grew its stake in shares of General Motors by 11.6% during the 2nd quarter. Man Group plc now owns 2,906,366 shares of the auto manufacturer's stock worth $143,022,000 after acquiring an additional 301,722 shares during the period. Worldquant Millennium Advisors LLC grew its stake in shares of General Motors by 436.8% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 2,658,525 shares of the auto manufacturer's stock worth $130,826,000 after acquiring an additional 2,163,274 shares during the period. Finally, Sei Investments Co. grew its stake in shares of General Motors by 5.0% during the 2nd quarter. Sei Investments Co. now owns 1,247,553 shares of the auto manufacturer's stock worth $61,392,000 after acquiring an additional 58,964 shares during the period. Institutional investors own 92.67% of the company's stock.

Analysts Set New Price Targets

GM has been the topic of a number of research reports. Mizuho upped their target price on General Motors from $58.00 to $67.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 23rd. UBS Group raised General Motors from a "neutral" rating to a "buy" rating and upped their target price for the stock from $56.00 to $81.00 in a research report on Wednesday, September 24th. Citigroup upped their target price on General Motors from $61.00 to $75.00 and gave the stock a "buy" rating in a research report on Monday, September 22nd. Jefferies Financial Group upped their target price on General Motors from $50.00 to $55.00 and gave the stock a "hold" rating in a research report on Monday, October 6th. Finally, Barclays increased their price target on General Motors from $73.00 to $77.00 and gave the company an "overweight" rating in a research report on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $65.00.

About General Motors

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.

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