Mary Barra, Chair and CEO of General Motors Co (NYSE:GM), recently sold a significant portion of her holdings in the company. According to an SEC filing, Barra sold 506,824 shares of GM stock on October 23, 2024, in two separate transactions. The shares were sold at a weighted average price range between $53.16 and $53.58, amounting to a total of approximately $27 million.
The filing also revealed that Barra exercised stock options to acquire 206,824 shares at a price of $41.40 per share, totaling around $8.56 million. Following these transactions, Barra holds 694,548 shares directly and an additional 169,128 shares indirectly through a Grantor Retained Annuity Trust (GRAT).
These transactions come as part of Barra's ongoing management of her equity in GM, where she has served as CEO since 2014.
In other recent news, General Motors (GM) has been the subject of several recent developments. The company has exceeded expectations, raising its full-year EBIT guidance by approximately 4%, following a positive investor day. Wells Fargo has maintained its Underweight rating on GM but increased the price target to $38.00, citing the company's plans to repurchase around 100 million additional shares and a surprising increase in pricing in GM's North America operations.
Despite these positive developments, GM has faced increased warranty costs, a detail Wells Fargo analysts found concerning. Barclays, on the other hand, has raised its price target for GM from $64 to $70, maintaining an Overweight rating, after GM's third-quarter earnings showed a 10% increase in revenue to $49 billion and an increase in adjusted automotive free cash flow to $5.8 billion.
GM's commitment to electric vehicles (EVs) is evident as it aims to produce around 200,000 EVs in North America this year. Despite challenges in the China market, the company remains optimistic, though it anticipates a $1.5 billion decrease in adjusted EBIT for the fourth quarter. These are some of the recent developments that have caught the attention of investors and analysts.
InvestingPro Insights
Mary Barra's recent stock transactions at General Motors Co (NYSE:GM) reflect a dynamic period for the automaker. According to InvestingPro data, GM's stock has shown impressive performance, with a 87.33% total return over the past year. This aligns with the company's strong financial position, as evidenced by its low P/E ratio of 5.64, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips highlight that GM has been aggressively buying back shares, which could be seen as a vote of confidence from management in the company's future prospects. Additionally, GM has raised its dividend for three consecutive years, demonstrating a commitment to shareholder returns that complements Barra's equity management strategy.
The company's financial health is further underscored by its substantial revenue of $182.72 billion over the last twelve months and a gross profit of $21.95 billion. These figures support GM's position as a prominent player in the automobile industry, as noted in another InvestingPro Tip.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 11 more tips available for GM on the platform.
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