General Motors Updates FY23 Earnings Forecast, Analyst Ratings Adjust

On a recent Wednesday, General Motors (NYSE:GM), a prominent automotive leader, updated its financial outlook for the fiscal year 2023. The company set its EPS (earnings per share) guidance to range between $7.20 and $7.70. This new forecast sits on various points of the spectrum when juxtaposed with Wall Street's consensus EPS estimate of $7.47 for the company.

Wall Street Analysts Revise GM's Valuation

Concurrently, a number of equity analysts have scrutinized General Motors' stock, leading to a mix of revised ratings and price targets. Notably, Citigroup adjusted their price objective from $95 to $90 whilst maintaining a 'buy' rating. Meanwhile, other financial services such as StockNews.com initiated coverage with a 'hold' rating, and Royal Bank of Canada nudged their price target up to $48, suggesting an 'outperform' standing. Contrastingly, Wells Fargo & Company slashed their price target down to $29 and tagged the stock as 'underweight.' UBS Group also trimmed their price target marginally to $43, though they continued to endorse a 'buy' rating. The aggregate of these reports conveys a 'Moderate Buy' consensus rating for General Motors, with an average price target resting at $50.67 according to MarketBeat data.

Current Performance and Dividend Announcement

General Motors' stock witnessed a modest rise of 1.4% on the said Wednesday with an opening price of $28.89. The company's financial health indicators feature a current ratio of 1.14 and a quick ratio of 0.96, alongside a debt-to-equity ratio standing at 1.02. Additionally, GM roped a 52-week low at $26.30 and a peak at $43.63. The firm boasts a market capitalization of $39.56 billion, a compelling PE ratio of 4.06, and a favorable beta of 1.48, amidst a complex market environment.

In alignment with its fiscal policies, GM declared a quarterly dividend to be distributed on December 14th to shareholders on record as of December 1st. The dividend is marked at $0.09 per share, translating to an annualized figure of $0.36 and yielding 1.25% off the ex-dividend date, November 30th.

Investment Dynamics

GM's recent financial narrative also touches upon the ebb and flow of institutional investments. Notably, firms like Penserra Capital Management and VitalStone Financial among others have either bolstered their stakes or initiated new positions in GM's equity. Institutional investors and hedge funds are reported to hold a substantial 79.62% of the company's stock, reaffirming a considerable level of institutional confidence in the automobile behemoth.

About General Motors

General Motors Company, a global force in automotive design and production, sells a vast array of trucks, crossovers, and car models along with automotive parts. It also offers software-enabled services and subscriptions. The company operates under multiple segments including GM North America, GM International, Cruise, and GM Financial, and markets vehicles under well-known brands such as Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling.

GeneralMotors, EarningsGuidance, AnalystRatings