DETROIT—Harvey Rory, Executive Vice President at General Motors Co (NYSE:GM), reported a significant transaction involving the company's common stock. According to a recent SEC filing, Rory sold 8,919 shares on November 25, 2024, at a weighted average price of $60.01 per share. This transaction amounted to a total value of approximately $535,229.
Additionally, Rory exercised stock options to acquire 8,919 shares at a price of $49.46 per share. Following these transactions, Rory's direct ownership of GM shares now stands at 8,513 shares.
These transactions were conducted under a pre-arranged trading plan, as noted in the filing.
In other recent news, General Motors (GM) has been the subject of several key developments. The company reported strong third-quarter earnings, with a 10% increase in revenue to $49 billion. Adjusted automotive free cash flow also saw an increase, reaching $5.8 billion. However, GM anticipates a $1.5 billion decrease in adjusted EBIT for the fourth quarter.
Investment banking firm Jefferies and research group Bernstein at SocGen have both revised their price targets for GM, raising them to $52 and $55 respectively. These adjustments were made following GM's announcement of exceeding expectations and raising its full-year EBIT guidance.
On the international front, the proposed U.S tariffs on all imports could lead to significant job losses and economic repercussions. Mexican Economy Minister Marcelo Ebrard estimated that such tariffs could lead to the loss of 400,000 jobs and affect major automotive companies, including GM. These are recent developments that investors should consider.
InvestingPro Insights
As Harvey Rory's recent stock transactions highlight executive activity at General Motors, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's current position.
General Motors has been demonstrating strong financial performance, with a notable revenue growth of 6.25% over the last twelve months as of Q3 2024, reaching $182.72 billion. This growth is further emphasized by the company's impressive year-to-date price total return of 53.77%, indicating significant investor confidence.
InvestingPro Tips reveal that GM's management has been aggressively buying back shares, which aligns with the company's strategy to return value to shareholders. This is complemented by GM raising its dividend for 3 consecutive years, with a current dividend yield of 0.88%.
The company's valuation metrics are particularly interesting, with a P/E ratio of 5.94, suggesting that GM might be undervalued relative to its earnings. This is further supported by an InvestingPro Tip indicating that GM is trading at a low earnings multiple, which could be attractive for value investors.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into GM's financial health and future prospects.
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