General Motors Co (NYSE:GM) has seen significant stock activity from one of its top executives, according to recent filings. Executive Vice President Harvey Rory has sold a substantial number of shares, amounting to over $736,000. The transactions took place over two different days, with a total of 13,097 shares sold at prices ranging from $47.31 to $49.04.
On August 23, Rory sold 2,302 shares of General Motors stock at an average price of $47.31 per share. This sale was followed by two separate transactions on August 26. In the first transaction of the day, Rory sold 10,952 shares at a weighted average price of $49.04, with individual sales prices varying from $49.00 to $49.16. Later that same day, an additional 1,843 shares were sold at an average price of $48.87 per share.
These sales come after Rory acquired the same number of shares, 10,952, through the exercise of options on August 26 at a set price of $35.49 per share. The total value for the options exercised amounted to $388,686. The options were initially granted on February 12, 2020, and were fully vested at the time of exercise.
Following these transactions, Rory's holdings in General Motors stock have changed, but the executive still retains a significant number of shares in the company. As is customary, the transactions were reported in a Form 4 filing with the Securities and Exchange Commission, providing transparency into the trading activities of the company's insiders.
Investors and market watchers often pay close attention to insider trading patterns as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that trading activity by insiders can be influenced by a variety of factors and may not necessarily indicate a specific trend.
In other recent news, Uber Technologies Inc . (NYSE:UBER) has announced a significant autonomous vehicle (AV) partnership with GM-owned Cruise. The collaboration, set to commence in early FY25, will allow Uber customers to choose self-driving vehicles from Cruise in a city yet to be disclosed. Deutsche Bank (ETR:DBKGn) has maintained its Buy rating and $95.00 price target for Uber following this development.
Meanwhile, General Motors (GM) has been undergoing major changes. The company recently laid off over 1,000 employees in its software and services units worldwide, aiming to streamline operations and focus on promising investments. GM is also facing a lawsuit from the state of Texas over allegations of selling private driver data without proper consent.
In addition, GM has issued a recall of 21,469 electric SUVs in the United States due to concerns about the anti-lock brake system, planning to address the issue through a software update. In response to these recent developments, RBC Capital has reduced its stock price target for GM, while maintaining an Outperform rating. These are among the recent developments affecting both Uber and GM.
InvestingPro Insights
General Motors Co (NYSE:GM) has been in the spotlight with recent insider trading activity. To provide a broader investment context, InvestingPro data and tips offer key insights into the company's financial health and market position. With a market capitalization of $55.22 billion, GM is trading at a low price-to-earnings (P/E) ratio of 5.56, which further adjusts to a lower 4.92 when considering the last twelve months as of Q2 2024. This low P/E ratio, particularly relative to near-term earnings growth, suggests that the stock may be undervalued.
Additionally, GM's PEG ratio for the same period stands at 0.22, indicating potential for growth compared to its earnings. The company's revenue growth has been steady, with a 4.93% increase over the last twelve months as of Q2 2024 and a quarterly growth rate of 7.2% in Q2 2024. These metrics underscore GM's capability to expand its income streams, which could be a positive signal for investors.
An InvestingPro Tip to consider is that 11 analysts have revised their earnings estimates upwards for the upcoming period, which may reflect a positive outlook on the company's financial performance. Moreover, GM is recognized as a prominent player in the Automobiles industry, and analysts predict the company will be profitable this year, having been profitable over the last twelve months.
For investors seeking a more detailed analysis, InvestingPro offers additional tips, including insights on share buybacks by management and GM's gross profit margins. In total, there are 9 InvestingPro Tips available for GM, which can be accessed for further investment research and decision-making.
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