General Motors Company (GM) Technical Signs to Spot a Rally

Looking into the technicals, General Motors Company (NYSE:GM) has scored 16% Buy indication. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the GM’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 13078105 shares. GM stock has overall a 0.75% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 14815660 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 13216660 shares, is 0% Hold on the basis of long term indicators.

The share price is currently staying around the first support level of $35.16. Below this, the next support is placed in the zone of $34.61. Till the time, the GM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.83 on daily chart, which may remain a cause for concern. If the price breaks below $34.61 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $36 mark may result into a pull-back move towards $36.29 level.

General Motors Company (GM) is projected to climb by 26.61 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $60-month high price target. This represents a whopping 68.07 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $44.75, which represents a return potential of 25.35 percent when compared to the closing price of the stock of $35.7 on Thursday, December 06. The lowest price target for the stock is $33 — slightly more than -7.56 percent from GM’s current share price.

Here’s a rundown of insider trading activity for sense of General Motors Company (NYSE:GM). The earliest insider trade took place on 06/01/2018. Batey Alan S. parted with a total of 215.69 thousand shares of company at average share price of $43.01. The total for the sales was set at $9.28 million. After this transaction, the Executive Vice President account balance stood at 84.59 thousand shares. The stock lost -18.53 percent since that insider sale. On 04/02/2018, Stevens Charles K. Iii, Executive Vice President & CFO, sold 35 thousand shares at a price per share of $36.1. This removed 1.26 million shares from the insider’s fortune and the stock saw a -2.94 percent retreat in value since the news became public. This transaction left 67.74 thousand shares in the Executive Vice President & CFO account. On 03/02/2018, Director Uaw Retiree Medical Benefits T performed a sale transaction worth $1588.4 million. This sale at $39.71 each has eliminated 40 million shares from the insider’s portfolio position. Meanwhile, shares have recorded -11.76 percent decrease since the transaction was reported. The insider now is left with 100 million shares remaining in the account. Timko Thomas S, who performs the VP, Controller & CAO job, sold 8.46 thousand shares for $355.87 thousand. The disposal occurred on 02/15/2018 was priced at $42.06 per share. The share price plunged -16.69 percent since the reporting date. Timko Thomas S now left with a stake of 33.52 thousand GM stock worth $1.2 million after the insider selling.

GM shares dropped -0.82 points or -2.25 percent on Thursday to $35.7 with a heavy trade volume of 14.474 million shares. After opening the session at $35.74, the shares went as high as $35.75 and as low as $34.91, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $48.8 billion and now has 1.37 billion shares outstanding. General Motors Company (GM) stock has lost -1.52 percent of market value in 21 trading days.

Analysts at Goldman, assumed coverage of General Motors Company (NYSE:GM) with Neutral recommendation, according to their opinion released on September 11. Morgan Stanley analysts again handed out a Overweight rating to GM stock but they lifted target price for the shares in a flash note to investors on August 17. The price target has been raised from $50 to $46. Morgan Stanley, analysts launched coverage of GM stock with a Overweight rating, according to their flash note to investors on August 17. Analysts at Evercore ISI issued an upgrade from In-line to Outperform for the stock, in a research note that dated back to May 31.

GM stock has a trailing 3-year beta of 1.27, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.89 a share in the trailing twelve months. The stock’s value has fallen -12.91 percent year to date (YTD) against a decline of -16.59 percent in 12 month’s time. The company’s shares still trade -21.57 percent away from its 1-year high of $45.52 and 16.82 percent up from 52-week low of $30.56. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of General Motors Company (GM) are trading at a P/E ratio of 6.23 times earnings reported for the past 12 months. The industry GM operates in has an average P/E of 14.57. Its P/E ratio went as low as 5.77X and as high as 21 over the 5-year span. Further, it is sporting a 0.33 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.22. 10.8 percent is the gross profit margin for General Motors Company and operating margin sits at 4.2 percent. Along with this, the net profit margin is 0.5 percent.

GM will be declaring its Q4 financial results on February 06. Analysts are forecasting revenue to suffer decline of -2.6 percent to $36.7B in the next fiscal quarter, while earnings are seen soaring by nearly -26.06 percent to $1.22 per share. History has shown that shares in General Motors Company have gone down on 16 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.87 per share, better than the $1.25, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $35.8B, better than the $34.8B analysts expected. Earnings are estimated to increase by -13.2 percent this year, -6.47 percent next year and continue to increase by 8.55 percent annually for the next 5 years.