GM breaking out of flag on weeklyGreat risk vs reward on this one. Lot of support below. Manage risk!
GM trade ideas
General Motors Rallied. Now it’s Pulled Back.General Motors recently hit a two-year year high, and some traders may see opportunity in its latest pullback.
The first pattern on today’s chart is the price area between roughly $45.70 and $46. The automaker stalled at this level in early April and remained below it all of May. It then broke out sharply on June 10 and has remained above it since. GM tested the zone last week and bounced. Has old resistance become new support?
Second, a pair of bullish gaps after the last two quarterly reports may reflect positive fundamentals.
Third, stochastics have dipped to an oversold condition.
Finally, prices have remained above the 50-day simple moving average. The 8-day exponential moving average (EMA) is also above the 21-day EMA. Those patterns may suggest GM has bullish intermediate and short-term trends.
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General Motors Company (GM)General Motors Company witnessed a rebound after forming a higher low at 45.93, to violate the minor resistance level of 48.04 by yesterday's session. then remaining above this level, will drive GM to test the last peak at 49.35, which is the level that needs to be violated to confirm the current uptrend, with higher targets near 50.35 - 50.80 - 51.50 - 52.90 - 54.35.
The stop-loss lies below 47.00.
the indicators are heading toward the positive side, which confirms the mentioned positive scenario.
The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
General Motors Navigates Challenges, Sees Bright Spots in 2024
General Motors ( NYSE:GM ) is making headlines after a roller-coaster ride in the fourth quarter of 2023, marked by a 9.50% surge in premarket trading on Tuesday. Despite a 41.5% decline in adjusted earnings and a slight drop in revenue, the automotive giant's positive outlook for 2024 and strategic moves have caught the attention of investors. We'll delve into the key factors shaping GM's current trajectory and explore what lies ahead for the company.
Q4 Performance and Hurdles:
NYSE:GM 's Q4 report showed a 41.5% decline in adjusted earnings to $1.24 per share, the first drop in five quarters, attributed to factors such as unsold electric vehicles and a 40-day strike. However, these results were less severe than expected, with FactSet analysts predicting a 45% decline to $1.16 per share. The impact of unsold EVs led to a $1.6 billion charge, and an additional $800 million charge was tied to the recall of Chevy Bolt batteries.
Promising U.S. and China Deliveries:
Despite the challenges, NYSE:GM delivered 2.6 million vehicles in the U.S. during 2023, boasting a 14% YoY increase. The company claimed a 16.2% total market share in the United States for 2023. Furthermore, NYSE:GM and its joint ventures delivered 2.1 million cars to China, underlining the global reach of the automaker.
Strategic Moves and Shareholder Returns:
NYSE:GM 's management outlined a positive outlook for 2024, emphasizing a resilient U.S. economy and continued demand for vehicles. The company aims to capitalize on strong demand for combustion trucks and SUVs in North America, cost-cutting initiatives, and the increasing sales of its new generation of electric vehicles.
In a bid to reward shareholders, NYSE:GM has already returned $12 billion in 2023 through a $10 billion share buyback and a 33% dividend increase. The company pledged to "consistently return excess free cash flow to shareholders" and outlined a forecast of adjusted pre-tax profits in the range of $12 billion to $14 billion for 2024.
Electric Vehicle Focus:
NYSE:GM is banking on the growing popularity of electric vehicles, with plans to increase overall EV sales to 10% of the U.S. market in 2024, up from 7% in 2023. The company's Chief Financial Officer, Paul Jacobson, expressed confidence that GM's electric vehicle operations would start generating variable profit by the second half of the year.
Cruise Unit Challenges and China Market Dynamics:
While NYSE:GM faces challenges in its Cruise robo-taxi unit, marked by a $1 billion spending cut and an external law firm's report faulting Cruise management's response to an incident, the company aims to refocus and relaunch Cruise. Meanwhile, in China, NYSE:GM acknowledges deepening challenges with domestic automakers and Tesla gaining share. The company expects a loss for the current quarter in the Chinese market.
Conclusion:
General Motors' ( NYSE:GM ) journey through Q4 2023 reflects a mix of challenges and promising innovations. As the automotive industry undergoes transformative shifts towards electric vehicles, NYSE:GM 's strategic moves and positive outlook for 2024 position the company for a dynamic year ahead. Investors will be watching closely as NYSE:GM navigates the evolving landscape, capitalizing on strengths and addressing challenges to drive future growth.
General Motors Company: AutomobilesKey arguments in support of the idea.
• GM's ongoing buyback programs could significantly reduce the number of
shares outstanding.
• The Company's Q2 results are likely to come in above expectations. New car
prices in the U.S. remain high.
• Momentum effects could support further upside for the stock.
Investment Thesis
General Motors Company is one of the largest automakers in North America,
involved in all aspects of the industry from vehicle design to the sale of finished
cars and parts. GM subsidiaries and joint ventures sell vehicles under the Chevrolet,
Buick, GMC, Cadillac, Baojun and Wuling brands.
On June 11, GM's Board of Directors adopted an additional $6 billion share
buyback program. Late last year, the automaker announced a large-scale program
to accelerate the repurchase of its own shares from the market (ASR) amounting to
$10 billion. The program was implemented in the first quarter of this year. GM will
spend another $1.1 billion to buy back its own shares by the end of the second
quarter. Thus, in addition to these payments, the Company can now spend up to
$6 billion on buybacks. We see GM increasing its profit distribution to shareholders
once again. According to our automotive analyst Michael P. Ward (CFA), the total
number of GM shares outstanding will fall to less than one billion by 2025 (30%
lower than the number of shares outstanding as of Q3 2023).
The new buyback program is a signal that we are in for a strong Q2 financial
performance. We expect North American auto sales to bring GM $3.8 billion in
operating profit for Q2, which is in line with Q1 2024 figures. Stable shipment
volumes and strong auto prices should support earnings for the current quarter.
The Company's total adjusted operating profit for the quarter may reach $4.0
billion (+25% y/y), while net income may rise to $3.16 billion (+23% y/y). The FactSet
consensus forecast suggests that net income will come in at $2.88 billion.
Technical factors also speak in favor of continued growth of GM stock price.
Since the end of 2023, GM shares have been on an upward trend, with each new
local high exceeding the previous one, as well as the lows. Additionally, since the
beginning of 2024, GM securities have demonstrated a significantly higher return
compared to the S&P 500 Index. This indicates the relative strength of the stock, a
positive factor from a technical perspective.
Shares of General Motors Company present an attractive buying opportunity,
especially considering that the financial results for the current quarter could
surpass expectations.
The target price for the Company is $55. We recommend to set the stop-loss at
$42.
GM - Increase in Probability of AppreciationFibo clouds have emerged from this latest pivot compacted and aligned in the sequence of timeframes (30', 60', H4 and D) in a way that provides support for the candles to reach the first target. There is a graphical reference that forces us to set the first target at 43.53.
However, if this first target is reached, with a partial realization of 50%, and as long as the stop loss is moved to the position where the trade was entered, it will be possible to let the candles develop towards the target or the loss repositioned
This is our strategy for trading this stock
Risk/Return is 3 and ideally an intermediate target should be placed between the initial and final target.
The original complex fib cloud technique used here was the same as that used in the studies on Exxom Mobil and Apple, as can be seen in the links below
🚗💡 General Motors (GM) Analysis 📈🔍Market Overview:
GM is experiencing strong pricing trends driven by robust demand and a focused strategy, according to CFO Paul Jacobson. Analysts are optimistic, with Bernstein assigning an outperform rating and a $55 price target, indicating significant upside potential.
Electrification Strategy:
The imminent launch of the low-cost Chevrolet Equinox EV underscores GM's commitment to electrification, enhancing future profitability and market position.
Investment Outlook:
Bullish Stance: A bullish outlook on NYSE:GM is warranted above $38.00-$39.00.
Upside Target: Target set at $61.00-$62.00, reflecting confidence in strategic execution and growth prospects in the electric vehicle market.
📊🔋 Monitor GM's performance closely for investment decisions! #GM #StockAnalysis 📉🔍
GM 10/1/2023GM
About to blow.
After receiving those COVID bucks that propelled its stock into a nice uptrend, GM spent most of 2021 in a distribution stage, forming an M-top pattern. The price entered a downtrend in February '22 and finally found support in July '22.
The price entered a sideways range, initially resembling a rising wedge but later developing into a sideways channel.
Now price finds itself at the support level of this channel for the fourth time now. It's important to note that the more a support level is touched, the weaker it becomes. Additionally, it is currently under both the 50 and 200 EMA (Exponential Moving Average)
Entering trade short
Entry: 32.99
Stop Loss: 35.07, -6.30%
Target: 19.27, +41.59%, 6.6 RR ratio
GM General Motors Company Options Ahead of EarningsIf you haven`t bought the dip on GM:
Then analyzing the options chain and the chart patterns of GM General Motors Company prior to the earnings report this week,
I would consider purchasing the 45usd strike price Calls with
an expiration date of 2024-7-19,
for a premium of approximately $1.63.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
General Motors Surges 5% on First Quarter ResultsGeneral Motors ( NYSE:GM ), the Michigan-based automaker, exceeded Wall Street's predictions and raised its annual forecast in its first-quarter report, citing stable pricing and demand for its gas-engine vehicles. The company increased its adjusted pretax profit projection to $12.5 billion to $14.5 billion, from its previous range of $12 billion to $14 billion for the year.
GM's net income for the first quarter increased by 24.4% over the year-ago period to $3 billion, with the automaker reporting a 7.6% rise in revenue to $43 billion. Its adjusted earnings per share of $2.62 surpassed the average Wall Street target of $2.15, and revenue exceeded the Wall Street target of $41.9 billion in the March quarter.
Investors were pleased with strong vehicle pricing for gasoline-powered trucks, which continue to generate substantial profit and free cash flow, according to Tim Piechowski, portfolio manager at ACR Alpine Capital Research in St. Louis. Despite GM's struggles in China and with electric vehicles, its truck and SUV business remains strong.
GM's business in China, previously the automaker's largest market, has been declining, with Chinese automakers and Tesla gaining market share in the region through deep price cuts and refreshed technology offerings. NYSE:GM lost $106 million in China in the quarter, which CFO Jacobson explained to reporters was less than expected, as the company worked through inventory.
GM's CEO, Mary Barra, faces two significant challenges ahead: turning around GM's shrinking sales in China and salvaging Cruise, its robotaxi unit. Cruise halted operations last year after one of its self-driving cars dragged a woman down a San Francisco street. Earlier this year, company officials announced that NYSE:GM would cut spending on this unit by $1 billion. The robotaxi business lost $2.7 billion last year, not including $500 million in restructuring costs incurred in the fourth quarter as the unit cut staff. GM spent $400 million on Cruise in the first quarter.
GM's joint venture with LG Energy Solution, called Ultium Cells, is ramping up production of battery cells at plants in Ohio and Tennessee, as Barra noted. She also said that the company continues to see sequential and year-over-year improvements in profitability as it benefits from scale, material cost, and mix improvements.
Both NYSE:GM and crosstown rival Ford Motor are relying on profit from gas-engine trucks to alleviate investors' concerns as they funnel cash into costly EV development. While GM has not broken out financial results for its EV business, CFO Jacobson maintained previous forecasts for turning a profit. He expects variable profit, which excludes fixed costs, to be positive by the second half of 2024.
Tesla, the EV leader, recently laid off more than 10% of its global staff and slashed prices on its models across several markets. It is expected to post its first revenue drop and lowest gross margin in nearly four years, according to LSEG data.
NYSE:GM outlined a $10 billion stock buyback last year after reaching a costly new labor agreement with the United Auto Workers union. The company announced that the first tranche of this was completed in the first quarter.
GM may be pivoting down SHORTGM on the weekly chart has ascended to the top of the high volume area of the long term
volume profile. The predictive algorithm forecasts a bounce down from that level. The
MACD indicator shows lines crossing over the histogram while the RSI lines are in the 60s
about the same level as the market pivot in 2022. The Supply / Demand indicator has the lines
with zero slopes ( flat) and ready for a reversal. Fundamentally, GM is challenged by the
dynamic between EVs and hybrids moving foward and federal mandates on fleet production
efficiency quota. I will take a short trade here along with Ford.
General Motors (GM) Soars to New Heights Amidst Insider Sell-offGeneral Motors Company (NYSE: NYSE:GM ) has been dominating headlines recently, not only for its impressive stock performance but also for a notable insider sell-off by Executive Vice President Rory Harvey. Despite this sell-off, NYSE:GM 's stock surged to a fresh 52-week high, reaching $43.06 in the previous session.
Insider Sell-off Amidst Record Highs:
The recent insider sell-off by Executive Vice President Rory Harvey, who offloaded 5,100 shares of NYSE:GM , might raise eyebrows among investors. However, it's essential to put this transaction into context. Insider selling is not uncommon, and it doesn't always signal a lack of confidence in the company's future prospects. Instead, it could simply be a strategic move by an executive to diversify their portfolio or address personal financial needs.
Record-Breaking Performance:
Despite the insider sell-off, NYSE:GM 's stock has been on a remarkable uptrend, surging 8.5% over the past month alone. This surge has propelled the stock to new heights. The company's stock has gained 19.3% since the beginning of the year, showcasing its resilience amidst broader market volatility.
Earnings Beat and Future Projections:
GM's stellar performance is underpinned by its robust financials and consistent earnings beats. The company has a stellar track record of surpassing earnings consensus estimates, having not missed expectations in the last four quarters. In its most recent earnings report, NYSE:GM reported an EPS of $1.24, comfortably beating the consensus estimate of $1.12. Moreover, its revenue also exceeded expectations, further bolstering investor confidence.
Looking ahead, analysts remain bullish on NYSE:GM 's prospects, with expectations of continued growth. For the current fiscal year, NYSE:GM is projected to post earnings of $9 per share on revenues of $174.98 billion, representing a substantial increase in EPS and revenues. Similarly, for the next fiscal year, the company is expected to deliver solid earnings growth, further cementing its position as a market leader.
Valuation and Investment Outlook:
While GM's stock may be trading at a 52-week high, valuation metrics suggest that the company still has room to run. With a Value Score of A and strong Momentum Score, NYSE:GM appears to be attractively priced relative to its growth prospects. Investors should consider the company's strong fundamentals, consistent earnings performance, and positive outlook when evaluating its investment potential.
In conclusion, General Motors' ( NYSE:GM ) impressive performance and bullish outlook make it a compelling investment opportunity, despite the recent insider sell-off. With robust financials, consistent earnings beats, and favorable valuation metrics, NYSE:GM is well-positioned to sustain its momentum and deliver long-term value to investors.
General Motors (GM): Charting a Course for SuccessGeneral Motors (GM): NYSE:GM
General Motors has been added to our portfolio, starting our chart analysis from the COVID-19 low at $14.33. Since then, we've developed an overarching Wave (1) in blue and have also already completed Wave (2) at $26.30, characterized by an Expanded Flat and Zigzag correction. We are now in the midst of the overarching Wave (3), which is expected to exceed both Wave (1) and the local high of $67.06.
The 4-hour chart provides a clearer view, indicating that we are currently near the conclusion of a circled Wave (i). In the coming weeks, we may see a downtrend towards Wave (ii), where the price should stabilize between the 50% and 78.6% retracement levels. The exact positioning of this phase is yet to be determined. Upon the first sign of weakness, we plan to place a limit order.
Turbulence in GM's Cruise: Leadership Exodus and the Road AheadGeneral Motors' ( NYSE:GM ) autonomous driving subsidiary, Cruise, finds itself navigating choppy waters yet again as the departure of Carl Jenkins, the head of hardware, marks another significant exit from the company. Jenkins' resignation, announced amid a series of departures since the suspension of U.S. operations in October, underscores the challenges facing Cruise in its quest for self-driving technology supremacy.
Jenkins, a stalwart of the autonomous vehicle (AV) industry with six years at Cruise, leaves behind a void in the development of crucial hardware components, including microchips and sensors. His departure follows the suspension of operations triggered by a tragic incident in San Francisco, where a pedestrian was fatally struck by a self-driving Cruise vehicle, prompting California authorities to suspend the company's permit for driverless vehicles.
The aftermath of the accident saw Cruise's then-CEO, Kyle Vogt, and co-founder Dan Kan resign, signaling a leadership shakeup. Now, with Jenkins' exit, questions arise about the stability of Cruise's leadership and its ability to regain momentum in the fiercely competitive AV landscape.
Mo Elshenawy, Cruise's Co-President, acknowledged Jenkins' departure in an internal communication, emphasizing the critical role of the autonomous vehicles platforms team in Cruise's efforts to resume testing. However, neither Jenkins nor Elshenawy provided a reason for the departure, leaving stakeholders speculating about underlying issues within the organization.
The timing of Jenkins' resignation, amid ongoing regulatory scrutiny and public skepticism surrounding self-driving technology, amplifies concerns about Cruise's future trajectory. With competitors such as Waymo and Tesla making significant strides in the AV space, Cruise faces mounting pressure to demonstrate its commitment to safety and innovation.
Yet, amidst the turbulence, Elshenawy strikes an optimistic tone, highlighting Cruise's position in a transitional phase as an opportunity for redefinition and growth. However, the road ahead remains fraught with challenges, from rebuilding public trust to addressing regulatory concerns and ensuring the seamless integration of hardware and software components.
As Cruise navigates these complexities, stakeholders, including investors and consumers, will be closely watching how the company adapts and evolves in the face of adversity. Jenkins' departure serves as a stark reminder of the hurdles inherent in pioneering autonomous technology and underscores the imperative for Cruise to chart a course towards a safer, more sustainable future for self-driving vehicles.
In the wake of Jenkins' resignation, the onus is on Cruise's leadership to instill confidence, foster innovation, and steer the company towards its vision of a world where autonomous vehicles redefine mobility. Only time will tell whether Cruise can weather the storm and emerge stronger on the other side.
Through strategic decision-making and a steadfast commitment to its mission, Cruise must prove that setbacks are but temporary detours on the road to revolutionizing transportation. As the AV industry continues to evolve, Cruise's ability to navigate uncertainty and stay the course will determine its legacy in shaping the future of mobility.
GM PennantI noticed a bunch of stocks forming pennants lately, small caps (IWM/RTY1!) has a huge on as I mentioned earlier today.
I think CPI numbers Tuesday determines the direction, the only thing that can tank the market is inflation. I might run a straddle with options Monday before close since I have no idea if CPI comes in above or below estimates. GM is a good one to play since it moves well relative to option premiums.
The return isn't all that great when you play straddles, but the most you can lose overnight is premium for one night and the spread between bid and ask. Just pick a stock that moves a lot with small spread.
Let me know if you have other stocks or ETFs that might be worth playing Monday.
Also, retail sales Thu and PPI numbers Friday.
