GM Buy Hold or Sell Recommendation

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GM -- USA Stock  

Report: 29th of July 2020  

Allowing for the 30-days total investment horizon, and your above-average risk tolerance our recommendation regarding General Motors is 'Buy'. Macroaxis provides GM buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GM positions. The advice algorithm takes into account all of General Motors available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from GM buy-and-hold perspective. Please check GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool.

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Sell GMBuy GM
Buy

Hype Condition

Current Valuation

Odds of Distress

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon General Motors has a risk adjusted performance of 0.2653, jensen alpha of 0.2965, total risk alpha of 0.2115, sortino ratio of 0.1149 and treynor ratio of 0.3374
Our buy or sell recommendations module can be used to complement current analysts and expert consensus on General Motors. Our buy, hold, or sell recommendation engine utilizes analyzes the firm potential to grow using all fundamental data market data available at the time. To make sure General Motors is not overpriced, please check out all GM fundamentals, including its price to earning, cash per share, price to earnings to growth, as well as the relationship between the gross profit and book value per share . Given that General Motors has a price to earning of 7.18 X, we strongly advise you to confirm General Motors market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

GM Trading Alerts and Improvement Suggestions

General Motors has very high historical volatility over the last 30 days
Over 78.0% of the company shares are owned by institutional investors
Latest headline from simplywall.st: Should You Investigate General Motors Company At US25.13 - Simply Wall St

GM current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. GM analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. GM analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Median Price34.00
Target Mean Price36.94
Recommendation Mean1.90
Target High Price59.00
Number Of Analyst Opinions17
Target Low Price23.00
Average Consensus Buy
The consensus estimates and target price estimation is comprised of individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

GM Returns Distribution Density

The chart of the probability distribution of GM stock daily returns describes the distribution of returns around its average expected value. We use General Motors' stock's Value At Risk and its Upside Potential as a relative measure of the distribution. The distribution of GM returns is essential to provide solid investment advice for GM stock.
Mean Return0.57Value At Risk-5.74
Potential Upside8.37Standard Deviation4.03
 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.

Institutional Investors

Security TypeSharesValue
Cacti Asset Management LlcCommon Shares248.3 K6.8 M
Park National CorpCommon Shares56 K1.4 M
Nelson Van Denburg Campbell Wealth Management Group LlcCommon Shares8.4 K212 K
Vanguard Group IncCommon Shares104.4 M2.2 B
Blackrock IncCommon Shares104 M2.2 B
Capital World InvestorsCommon Shares100.4 M2.1 B
Berkshire Hathaway IncCommon Shares74.7 M1.6 B

GM Cash Flow Accounts

2014201520162017201820192020 (projected)
Capital Expenditure(7.09 B)(6.81 B)(8.38 B)(8.45 B)(8.76 B)(7.59 B)(8.19 B)
Depreciation Amortization and Accretion7.24 B7.49 B9.82 B12.26 B13.67 B14.12 B12.73 B
Net Cash Flow or Change in Cash and Cash Equivalents(853 M)(3.86 B)(2.17 B)2.69 B5.65 B(553 M)(567.55 M)
Net Cash Flow Business Acquisitions and Disposals(26 M)(1.73 B)(53 M)(927 M)(804 M)(723.6 M)(742.64 M)
Issuance Purchase of Equity Shares(3.28 B)(3.52 B)(2.5 B)(4.49 B)(190 M)(171 M)(184.5 M)
Issuance Repayment of Debt Securities12.24 B18.02 B21.03 B18.45 B11.66 B(2.53 B)(2.6 B)
Payment of Dividends and Other Cash Distributions(1.69 B)(3.17 B)(2.24 B)(2.37 B)(2.23 B)(2.35 B)(2.54 B)
Net Cash Flow from Financing5.67 B13.61 B17.08 B12.58 B11.45 B(4.68 B)(4.8 B)
Net Cash Flow from Investing(15.36 B)(27.71 B)(35.64 B)(27.57 B)(20.76 B)(10.9 B)(11.76 B)
Net Cash Flow Investment Acquisitions and Disposals(4.28 B)(4.48 B)(8.18 B)(3.24 B)(6.33 B)(343 M)(370.08 M)
Net Cash Flow from Operations10.06 B11.77 B16.61 B17.33 B15.26 B15.02 B15.1 B
Effect of Exchange Rate Changes on Cash(1.23 B)(1.52 B)(213 M)348 M(299 M)2 M2.16 M

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 Driverless Cars 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 stock'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
=0.30
β
Beta against DOW=1.66
σ
Overall volatility
=3.74
Ir
Information ratio =0.1

GM Volatility Alert

General Motors shows above-average downside volatility of 3.5 for the selected time horizon. We advise investors to inspect General Motors further and to ensure all market timing and asset allocation strategies are consistent with estimation about GM future alpha.
    
 Better Than Average     
    
 Worse Than Average Compare GM to competition

GM Fundamental Vs Peers

FundamentalsGMPeer Average
Return On Equity10.81 %(0.31) %
Return On Asset1.69 %(0.14) %
Profit Margin3.60 %(1.27) %
Operating Margin8.86 %(5.51) %
Current Valuation134.13 B16.62 B
Shares Outstanding1.43 B571.82 M
Shares Owned by Insiders7.19 %10.09 %
Shares Owned by Institutions78.03 %39.21 %
Number of Shares Shorted21.03 M4.71 M
Price to Earning7.18 X28.72 X
Price to Book0.82 X9.51 X
Price to Sales0.25 X11.42 X
Revenue135.07 B9.43 B
Gross Profit14.14 B27.38 B
EBITDA11.97 B3.9 B
Net Income4.71 B570.98 M
Cash and Equivalents34.53 B2.7 B
Cash per Share24.13 X5.01 X
Total Debt128.76 B5.32 B
Debt to Equity2.90 %48.70 %
Current Ratio1.07 X2.16 X
Book Value Per Share28.65 X1.93 K
Cash Flow from Operations16.66 B971.22 M
Short Ratio1.25 X4.00 X
Earnings Per Share3.26 X3.12 X
Price to Earnings To Growth4.17 X4.89 X
Number of Employees164 K18.84 K
Beta1.42-0.15
Market Capitalization33.52 B19.03 B
Total Asset194.52 B29.47 B
Retained Earnings23.35 B9.33 B
Working Capital6.54 B1.48 B
Current Asset78.01 B9.34 B
   Disposition of 1199 shares by Daniel Ammann of GM subject to Rule 16b-3 [view details]

About GM Buy or Sell Advice

When is the right time to buy or sell General Motors? Buying stocks such as GM isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock 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 bases. Although GM investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply. Please read more on our stock advisor page.
 2017 2018 2019 2020 (projected)
Receivables28.68 B33.4 B33.4 B27.48 B
Inventories10.66 B9.82 B10.4 B12.84 B

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Please check GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page