General Motors (GM, $49.56) shares got downgraded at Morgan Stanley
General Motors shares fell lower Tuesday, after analysts at Morgan Stanley lowered their rating and price target on the automaker’s stock.
Morgan Stanley analyst Adam Jonas slashed his rating on General Motors to equal-weight. The analyst lowered his price target by $20 to $55 per share. Jonas mentioned that GM’s shift to electric vehicles will likely lead to a negative compound annual growth rate of overall revenues, between now and the end of the decade.
According to Jonas, GM's near-term projections including 2022 earnings of around $14 billion, capital spending of around $10 billion a year for the next several years, has led to the "most significant estimates reduction” Morgan Stanley has made for GM since the start of Covid. The analyst’s revised forecast on earnings per share is $6.64 -- approximately 11% lower than the prior outlook.
"We now expect GM to remain one holistic company for at least the next 12-18 months as management builds out its EV, AV and connected capabilities," Jonas said. However, the analysts maintains concerns around the automaker’s shift from ICE to electrification.
GM in upward trend: price rose above 50-day moving average on May 08, 2025
GM moved above its 50-day moving average on May 08, 2025 date and that indicates a change from a downward trend to an upward trend. In of 28 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 08, 2025. You may want to consider a long position or call options on GM as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GM just turned positive on April 22, 2025. Looking at past instances where GM's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for GM crossed bullishly above the 50-day moving average on May 14, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 233 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GM moved out of overbought territory on May 19, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GM broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.815) is normal, around the industry mean (6.217). P/E Ratio (6.202) is within average values for comparable stocks, (17.826). Projected Growth (PEG Ratio) (0.846) is also within normal values, averaging (5.723). GM has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.042). P/S Ratio (0.362) is also within normal values, averaging (78.608).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles
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