General Motors Company Receives Underweight Rating from Morgan Stanley (GM)
General Motors Company (NYSE:GM)‘s stock had its “underweight” rating restated by investment analysts at Morgan Stanley in a note issued to investors on Thursday. They currently have a $33.00 price objective on the stock. Morgan Stanley’s target price points to a potential downside of 11.03% from the company’s current price.
The analysts wrote, “Life’s already hard enough for the D3. Antiquated US franchise laws make it harder for GM and F to provide best execution for their customers. Tesla’s quest to own its own stores has brought to light issues that have long faced the industry. On June 16th, the New Jersey Assembly approved legislation allowing Tesla to own 4 stores in the state. This passed by unanimous vote of 77 to 0 (1 abstention). “As TSLA grows in significance and expands its sales network, we expect more debate (at the Federal level) on the double-standard in the application of dealer franchise laws. Tesla is the only OEM that can truly control the customer experience at its stores, while all others are prevented by law. We see this is a major advantage for TSLA and a disadvantage for all others. To be clear, we see the franchise model as superior for the vast majority of US vehicle sales with no law required to enforce it.”
Shares of General Motors Company (NYSE:GM) traded down 1.63% on Thursday, hitting $36.485. 2,647,223 shares of the company’s stock traded hands. General Motors Company has a 52 week low of $31.70 and a 52 week high of $41.85. The stock’s 50-day moving average is $35.25 and its 200-day moving average is $36.35. The company has a market cap of $58.512 billion and a P/E ratio of 19.81. General Motors Company also saw a large increase in short interest in the month of June. As of June 13th, there was short interest totalling 41,491,666 shares, an increase of 19.9% from the May 30th total of 34,610,138 shares. Approximately 3.1% of the shares of the stock are sold short. Based on an average trading volume of 16,181,637 shares, the short-interest ratio is currently 2.6 days.
General Motors Company (NYSE:GM) last issued its quarterly earnings data on Thursday, April 24th. The company reported $0.29 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.06 by $0.23. The company had revenue of $37.40 billion for the quarter, compared to the consensus estimate of $38.43 million. During the same quarter last year, the company posted $0.67 earnings per share. General Motors Company’s revenue was up 1.4% compared to the same quarter last year. On average, analysts predict that General Motors Company will post $3.08 earnings per share for the current fiscal year.
GM has been the subject of a number of other recent research reports. Analysts at Zacks reiterated a “neutral” rating on shares of General Motors Company in a research note on Friday, June 6th. They now have a $38.00 price target on the stock. Separately, analysts at Citigroup Inc. reiterated a “buy” rating on shares of General Motors Company in a research note on Wednesday, May 21st. They now have a $47.00 price target on the stock, down previously from $48.00. Finally, analysts at Craig Hallum downgraded shares of General Motors Company from a “buy” rating to a “hold” rating in a research note on Friday, April 25th. They now have a $37.00 price target on the stock, down previously from $41.00. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $41.37.
General Motors Corporation (NYSE:GM) designs, build and sell cars, trucks and automobiles parts globally.
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