Weiss Ratings Downgrades General Motors to Hold Amid Mixed Analyst Views

General Motors (NYSE:GM) has been downgraded from a buy rating to a hold rating by Weiss Ratings, according to a report released on Saturday. The new rating reflects a shift in investor sentiment towards the automotive giant, which has seen varied responses from other financial analysts recently.

On October 21, 2023, the Goldman Sachs Group reaffirmed a “buy” rating for General Motors, indicating confidence in the company’s long-term prospects. Conversely, Wells Fargo & Company adjusted its target price on the stock from $40.00 to $46.00, assigning it an “underweight” rating. Additionally, UBS Group raised its price target from $81.00 to $85.00 while maintaining a “buy” rating.

Analysts from Tigress Financial also increased their price target from $88.00 to $92.00, offering a “strong-buy” rating. As of now, General Motors has received two strong buy ratings, thirteen buy ratings, seven holds, and two sell ratings from various analysts. According to data from MarketBeat.com, the average rating for the company is classified as a “moderate buy,” with an average price target set at $70.00.

General Motors Stock Performance and Earnings Report

General Motors opened trading at $69.36 on Friday, and the company boasts a market capitalization of $64.70 billion. It has a price-to-earnings ratio of 13.95 and a beta of 1.33, indicating moderate volatility compared to the market. Over the past year, the stock has fluctuated between a low of $41.60 and a high of $69.70.

In its latest earnings report, released on October 21, General Motors reported earnings per share of $2.80, surpassing analysts’ expectations of $2.32 by $0.48. The company achieved revenue of $48.59 billion for the quarter, exceeding projections of $44.60 billion. However, this revenue figure reflects a slight decline of 0.3% year-over-year. The net margin stood at 1.62%, with a return on equity of 12.29%. General Motors has projected earnings per share guidance for fiscal year 2025 between $9.750 and $10.500.

Dividend Announcement and Insider Trading Activity

In a recent announcement, General Motors declared a quarterly dividend of $0.15, scheduled for payment on December 18, 2023. Investors on record as of December 5 will benefit from this dividend, which translates to an annualized dividend of $0.60 and a yield of 0.9%. The company’s current payout ratio stands at 12.07%.

Recent insider trading activity has also drawn attention. On October 22, President Mark L. Reuss sold 260,600 shares at an average price of $66.45, totaling approximately $17.32 million. This transaction reduced his holdings by 72.67%. CEO Mary T. Barra also sold 907,024 shares on August 28 at an average price of $58.24, amounting to around $52.83 million and resulting in a 62.16% decrease in her stake.

In the past 90 days, insiders have sold 2,335,424 shares worth approximately $139.69 million. Currently, insiders hold 0.54% of the stock.

Institutional investors have also been active with their shares. Vanguard Group Inc. increased its stake by 11.5% during the second quarter, acquiring an additional 11,418,367 shares, bringing its total ownership to 110,759,703 shares valued at around $5.45 billion. Other major investors, including Dimensional Fund Advisors and Invesco Ltd., have also raised their positions in General Motors, reflecting strong institutional interest. Collectively, hedge funds and institutional investors own 92.67% of the company’s stock.

General Motors continues to navigate a complex landscape while maintaining its position as a leading automotive manufacturer. With a diverse portfolio of vehicles and growing market dynamics, the company remains a focal point for investors and analysts alike.