General Motors Shares Experience Volatility Amid Positive Earnings Report

General Motors Company (GM), with a market capitalization of $47.8 billion, is a prominent player in the global automotive manufacturing industry. Headquartered in Detroit, Michigan, GM designs, builds, and sells a range of vehicles including trucks, crossovers, cars, and automobile parts. Furthermore, it offers software-enabled services and subscriptions worldwide.

Fitting into the “large-cap” stock category, GM operates through four main segments: GM North America, GM International, Cruise, and GM Financial. The company markets its vehicles under well-known brands such as Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling.

Despite its strong market position, GM’s stock price has seen a decline of 21.5% from its 52-week high of $61.24. In the last three months, GM shares fell 8.8%, underperforming the broader Dow Jones Industrial Average’s ($DOWI) loss of 5.1% during the same period.

Over a longer timeframe, GM saw a year-to-date decline of 9.7%, trailing the DOWI’s 1.5% drop. However, over the past 52 weeks, General Motors shares have increased by 21.7%, which is a solid performance compared to the Dow Jones’ almost 8.1% rise.

Since last year, GM has been trading above its 50-day and 200-day moving averages. Yet, it has recently dipped below its 50-day average since December 2024 and its 200-day average since February.

The company reported better-than-expected Q4 2024 adjusted earnings per share (EPS) of $1.92 and revenues of $47.7 billion. Nevertheless, GM’s shares dropped 8.9% on January 28, due in part to a range of factors. While the company projected a 2025 net income between $11.2 billion and $12.5 billion and adjusted EBIT of $13.7 billion to $15.7 billion—both higher than Wall Street forecasts—this guidance did not consider potential policy shifts. The possibility of repealing EV tax credits and imposing a 25% tariff on Canadian and Mexican imports could increase vehicle costs and negatively impact demand.

Moreover, management did not provide updates regarding capital return plans, raising uncertainty about future share buybacks and dividends and adding to investor concerns.

In contrast to GM, rival Ford Motor Company (F) has struggled over the past 52 weeks, with a decline of 18.2% in its stock price. However, Ford’s shares have shown slight year-to-date growth, surpassing GM’s performance.

Despite recent challenges, analysts maintain a cautiously optimistic outlook for GM. Currently, 24 analysts rate the stock as a “Moderate Buy,” although GM is trading below the average price target of $59.92.

On the date of publication, Sohini Mondal did not hold positions in any securities mentioned in this article. All information is for informational purposes only. Please review the Barchart Disclosure Policy here.

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