The Case for and Against General Motors Company (GM)

General Motors Company (GM) is an interesting player in the Consumer Goods space, with a focus on Auto Manufacturers – Major. The stock has been active on the tape, currently trading at $44.45, up from yesterday’s close by 0.61%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

General Motors Company (GM) currently trades with a market capitalization of $62.19 Billion. That value represents a market adjusting for revenues that have been falling by -3.13 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$11.9 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.88 on a per share basis this quarter. Perhaps, that suggests something about why 0.21% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, General Motors Company recorded a 52-week high of $46.76. It is now trading 2.31% off that level. The stock is trading $38.95 its 50-day moving average by -5.5%. The stock carved out a 52-week low down at $33.86.

In recent action, General Motors Company (GM) has made a move of +20.33% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.95% with $1.31 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GM.

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