Published: Fri, February 08, 2019
Business | By Eloise Houston

GM reports strong earnings as job cuts begin

GM reports strong earnings as job cuts begin

Finally, Supplemental Annuity Collective Trust of NJ grew its holdings in General Motors by 27.3% during the 4th quarter. "We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value", said CEO Mary Barra, under fire recently for GM's latest round of USA and Canada factory job cuts and "non-allocations" (but none in China or Mexico, as U.S. president Donald Trump has observed on Twitter). After buying 275,166 shares in the last quarter, the firm now controls 7,193,288 shares of Square, Inc. which are valued at $403,471,524. Finally, Gradient Investments LLC lifted its holdings in shares of General Motors by 89.7% during the fourth quarter. Institutional investors and hedge funds own 75.55% of the company's stock.

Total North America vehicle sales dipped 4.2% to 917,000 but GM's bottom line was boosted by pickup truck sales, which are a profitable and growing share of its product lineup. 5,474,409 shares of the company's stock traded hands, compared to its average volume of 11,155,458.

The stock is trading -12.67% away from its 52 week high of $45.00 and 28.6% far from the stock's low point over the past 52 weeks, which was $30.56.

The Detroit-based company is trying to manage what CEO Barra described as an "increasingly challenging" market in China.

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.

Shortly after General Motors confirmed the layoffs of thousands of workers at several plants across the country, the automaker announced it's bringing a thousand new jobs to a MI assembly plant. Excluding restructuring charges, the company made $1.43, beating Wall Street estimates of $1.24 a share. General Motors had a net margin of 0.56% and a return on equity of 25.81%.

Revenues rose 1.8 percent to $38.4 billion. During the same period in the prior year, the business posted $1.65 EPS. Analysts polled by Refinitiv IBES had expected earnings of $1.22.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 22nd. General Motors's dividend payout ratio (DPR) is presently 22.96%. BMO Capital Markets raised their price objective on shares of General Motors from $41.00 to $47.00 and gave the stock an "outperform" rating in a research note on Monday, January 14th. Zacks Investment Research raised General Motors from a sell rating to a hold rating in a report on Tuesday, October 9th. Deutsche Bank initiated coverage on General Motors in a research note on Thursday, December 13th. JPMorgan Chase & Co. increased their target price on General Motors from $48.00 to $53.00 and gave the stock an overweight rating in a research note on Tuesday, November 27th. They issued a "buy" rating for the company. They set a "buy" rating on the stock. On average, equities analysts predict that General Motors will post 6.3 EPS for the current year.

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