Key Stats for General Motors Stock
- Price change for General Motors stock: -7%
- $GM Stock Price as of Oct. 20: $77
- 52-Week High: $92
- $GM Stock Price Target: $104
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What Happened?
General Motors (GM) shares fell nearly 7% on Tuesday, even though the company beat Wall Street’s Q3 expectations.
- Adjusted earnings came in at $3.70 per share, above the $3.63 analysts expected.
- Revenue hit a record $50.02 billion, versus $48.76 billion expected.
North America did the heavy lifting and delivered $3.6 billion of GM’s $4.1 billion in adjusted EBIT.
Its margin was 8.7%, up 2.5 points from a year ago, and net income was $3.3 billion, up roughly $2 billion from last year.
GM also announced a new multiyear buyback of $20 billion, following a $6 billion repurchase program the company just completed.
It also raised its free cash flow outlook to $11.5 billion to $12.5 billion, up from $9.5 billion to $11.5 billion.
So why is General Motors stock down? The new earnings guidance fell short of expectations.
GM now sees adjusted EPS of $12.75 to $13.75, which puts the midpoint at $13.25, lower than what analysts were looking for: $13.41.
Higher costs are the main worry. GM expects about $2 billion in headwinds this year from commodities, logistics, and memory chip costs.
Copper prices are at record levels, and steel prices are at 4-year highs. GM also said its Q4 will be down from the third.
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What the Market Is Telling Us About General Motors Stock
Investors are focused on what comes next, not the quarter that just ended.
Analysts said the results were solid. But they questioned whether higher costs and pricing pressure could limit earnings growth next year.
GM’s CFO said vehicle pricing is fairly flat while costs keep rising, and the company says 2027 can still be better than 2026.
But that depends on strong demand and easing cost pressures. A new truck launch is also underway, and GM expects roughly the same truck volume next year.
The buyback shows management believes the shares are undervalued.
Still, General Motors stock is trading on the cost outlook for now. Investors will watch whether commodity prices cool before GM gives full 2027 guidance.
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So what is General Motors stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
