In recent trading, shares of General Motors Co (Symbol: GM) have crossed above the average analyst 12-month target price of $60.12, changing hands for $60.20 per share. When a stock reaches the target set by an analyst, they generally face two options: downgrade the stock based on valuation or raise their target price. The choice can also hinge on the business developments that may have influenced the stock price increase. If the company shows promising signs, it might indicate a higher target price is warranted.
General Motors’ target averages stem from 26 different analysts within the Zacks coverage universe. However, this average reflects a diverse range of opinions — some analysts project lower targets, such as $38.00, while others set their sights much higher, with one analyst projecting $98.00. The standard deviation among these targets is $13.932.
The rationale for considering the average price target for GM is to utilize the “wisdom of crowds,” where the combined insights of multiple analysts are more informative than the view of a single expert. As GM’s stock prices cross above the average target price of $60.12 per share, investors now have a significant opportunity to evaluate the company’s prospects. They must decide if this price is merely a checkpoint toward an even higher target or an indication that the valuation has become excessive, suggesting it might be wise to take some profit. Below is a table summarizing the current opinions of analysts covering General Motors Co:
| Recent GM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 11 | 11 | 11 | 13 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 10 | 10 | 10 | 7 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 3 | 3 | 2 | 2 |
| Average rating: | 2.29 | 2.29 | 2.21 | 2.0 |
The average rating shown in the table above uses a scale from 1 to 5, where 1 indicates a Strong Buy and 5 denotes a Strong Sell. This article utilizes data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on GM, feel free to explore more.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
