General Motors Stock Buy Hold or Sell Recommendation
| GM Stock | USD 54.87 0.24 0.44% |
Allowing for the 90-day total investment horizon and your typical level of risk aversion, our recommendation regarding General Motors is 'Hold'. The recommendation algorithm takes into account all of GM's available fundamental, technical, and predictive indicators you will find on this site.
Check out GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as GM and provide practical buy, sell, or hold advice based on investors' constraints. General Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
GM |
Execute GM Buy or Sell Advice
The GM recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on General Motors. Macroaxis does not own or have any residual interests in General Motors or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute GM's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
GM Trading Alerts and Improvement Suggestions
| General Motors is unlikely to experience financial distress in the next 2 years | |
| Over 87.0% of the company shares are owned by institutional investors | |
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GM Returns Distribution Density
The distribution of GM's historical returns is an attempt to chart the uncertainty of GM's future price movements. The chart of the probability distribution of GM daily returns describes the distribution of returns around its average expected value. We use General Motors price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of GM returns is essential to provide solid investment advice for GM.
| Mean Return | 0.30 | Value At Risk | -2.76 | Potential Upside | 3.74 | Standard Deviation | 2.19 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of GM historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
GM Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as GM, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading General Motors back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2024-06-30 | 14.4 M | Bank Of America Corp | 2024-06-30 | 14.3 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 13.8 M | Amvescap Plc. | 2024-06-30 | 13.8 M | Norges Bank | 2024-06-30 | 13.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 13 M | Legal & General Group Plc | 2024-06-30 | 11.3 M | Diamond Hill Capital Management Inc | 2024-09-30 | 11.1 M | Capital Research Global Investors | 2024-09-30 | 10.8 M | Blackrock Inc | 2024-06-30 | 110.2 M | Vanguard Group Inc | 2024-09-30 | 94.4 M |
GM Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Dividends Paid | 2.4B | 669M | 186M | 397M | 597M | 567.2M | |
| Capital Expenditures | 24.0B | 20.5B | 22.1B | 21.2B | 24.6B | 20.7B | |
| Net Income | 6.7B | 6.3B | 9.9B | 9.7B | 9.8B | 9.9B | |
| Change To Inventory | (761M) | (104M) | (3.2B) | (2.6B) | (757M) | (794.9M) | |
| End Period Cash Flow | 22.9B | 23.1B | 23.5B | 21.9B | 21.9B | 22.1B | |
| Change In Cash | (553M) | 174M | 425M | (1.6B) | (31M) | (32.6M) | |
| Free Cash Flow | (9.0B) | (3.9B) | (6.9B) | (5.1B) | (3.7B) | (3.9B) | |
| Depreciation | 14.1B | 12.8B | 12.1B | 11.3B | 11.9B | 10.0B | |
| Other Non Cash Items | (1.9B) | (3.0B) | (3.5B) | (2.4B) | (2.8B) | (3.0B) | |
| Change To Netincome | (1.9B) | (2.3B) | (3.4B) | (2.2B) | (2.5B) | (2.6B) | |
| Investments | 13.0B | (1.2B) | 6.4B | (17.9B) | (19.0B) | (18.1B) | |
| Net Borrowings | (2.5B) | 6.1B | 406M | 6.6B | 5.9B | 7.0B |
GM Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to GM or Automobiles sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that GM's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a GM stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 1.37 | |
σ | Overall volatility | 2.16 | |
Ir | Information ratio | 0.09 |
GM Volatility Alert
General Motors currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GM's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact GM's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.GM Fundamentals Vs Peers
Comparing GM's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze GM's direct or indirect competition across all of the common fundamentals between GM and the related equities. This way, we can detect undervalued stocks with similar characteristics as GM or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of GM's fundamental indicators could also be used in its relative valuation, which is a method of valuing GM by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare GM to competition |
| Fundamentals | GM | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.027 | -0.14 |
| Profit Margin | 0.06 % | (1.27) % |
| Operating Margin | 0.08 % | (5.51) % |
| Current Valuation | 155.96 B | 16.62 B |
| Shares Outstanding | 1.1 B | 571.82 M |
| Shares Owned By Insiders | 0.23 % | 10.09 % |
| Shares Owned By Institutions | 87.29 % | 39.21 % |
| Number Of Shares Shorted | 29.65 M | 4.71 M |
| Price To Earning | 6.76 X | 28.72 X |
| Price To Book | 0.85 X | 9.51 X |
| Price To Sales | 0.33 X | 11.42 X |
| Revenue | 171.84 B | 9.43 B |
| Gross Profit | 21.15 B | 27.38 B |
| EBITDA | 9.3 B | 3.9 B |
| Net Income | 9.84 B | 570.98 M |
| Cash And Equivalents | 19.15 B | 2.7 B |
| Cash Per Share | 18.45 X | 5.01 X |
| Total Debt | 122.65 B | 5.32 B |
| Debt To Equity | 1.65 % | 48.70 % |
| Current Ratio | 1.14 X | 2.16 X |
| Book Value Per Share | 64.49 X | 1.93 K |
| Cash Flow From Operations | 20.93 B | 971.22 M |
| Short Ratio | 2.28 X | 4.00 X |
| Earnings Per Share | 9.37 X | 3.12 X |
| Price To Earnings To Growth | 6.44 X | 4.89 X |
| Target Price | 59.26 | |
| Number Of Employees | 163 K | 18.84 K |
| Beta | 1.41 | -0.15 |
| Market Capitalization | 60.34 B | 19.03 B |
| Total Asset | 273.06 B | 29.47 B |
| Retained Earnings | 55.39 B | 9.33 B |
| Working Capital | 7.17 B | 1.48 B |
GM Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as GM . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About GM Buy or Sell Advice
When is the right time to buy or sell General Motors? Buying financial instruments such as GM Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having GM in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Is Automobile Manufacturers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.218 | Dividend Share 0.45 | Earnings Share 9.37 | Revenue Per Share 155.11 | Quarterly Revenue Growth 0.105 |
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.