General Motors Company (NYSE:GM) is making waves in the electric vehicle (EV) arena as sales of all-electric and hybrid models finally secured 20% of new car and truck sales across the U.S. through 2024. According to Motor Intelligence, over 3.2 million electrified vehicles were sold last year: 1.9 million hybrid vehicles and 1.3 million all-electric vehicles.
Traditional gas and diesel-powered vehicles still dominate the market with 79.8% of new vehicle sales; nevertheless, this marks the first time their market share dipped below 80% historically. Analysts project strong growth for the EV sector as Cox Automotive anticipates electric vehicles will comprise about 10% of new vehicle sales by 2025, with hybrids pushing the total to nearly one out of four.
This significant shift is partly influenced by fluctuated interest from institutional investors. Recent filings indicate Banco Santander S.A. cut its stake in GM by 98.5%, selling off 368,904 shares and retaining only 5,620 shares valued at $299,000. Conversely, ACR Alpine Capital Research LLC boosted its stake by 39.8%, now owning 7.4 million shares worth approximately $394 million, showcasing the mixed sentiment from institutional players.
Despite some drops, General Motors showed impressive growth during 2024. The company reported sales growth across its vehicle segments. Specifically, GM’s EV sales surged by 50% during the fourth quarter compared to the previous year, contributing to their overall sales jumping 21% from Q4 2023. The phenomenal growth marked GM as one of the top players among EV stocks according to billionaire investors, with 15 holding stakes and 68 hedge funds invested.
Highlighting the firm's commitment to electric future, GM completed its acquisition of Cruise Holdings, enhancing its autonomous vehicle technology and advanced driver assistance systems. The fusion of Cruise's technology with GM's existing services like the Super Cruise assisted driving system reveals GM's drive to innovate and lead the EV sector.
Current market evaluations show mixed opinions around GM's stock. Recently, Deutsche Bank upgraded GM from "hold" to "buy" with price targets lifted from $56 to $60. Meanwhile, analysts from UBS Group have opted to maintain their "buy" rating, showing confidence against some competing sentiments. Meanwhile, StockNews.com has shifted their ratings from "buy" to "hold".
Performance-wise, GM is benefitting from increased trading interest with stocks opening at $48.10. The company has navigated through some rough seas recently; it still holds concepts favorable to analysts' expectations. Notably, GM reported earnings per share of $1.92 beating the consensus estimate of $1.75 by $0.17.
Future growth indicators remain strong; for 2025, analysts expect GM’s earnings per share to be 11.44. Other markers such as the firm's recent stock repurchase plan, which authorizes up to $6 billion worth of shares to be bought back on the open market, signal confidence among the board concerning GM's stock valuation.
On the shareholder front, insiders are actively participating: Director Alfred F. Kelly, Jr. recently purchased 12,000 shares, enhancing his position significantly to 13,714 shares valued near $694,751 post-transaction. This insider activity signals trust and belief in GM's long-term prospects.
Also of importance is the recently declared dividend. GM announced it will pay $0.12 quarterly dividend on March 20 for shareholders as of record on March 7. This equates to $0.48 annually yielding around 1.00%. The company’s dividend payout ratio sits at 7.80%, indicating sustainable distributions.
Attention from major hedge funds continues to sway, as 92.67% of GM stock is owned by institutional investors. Firms like Amundi and Caisse DE Depot are strengthening their holdings dramatically, highlighting investor confidence and GM's potential for long-term growth.
With future projections leaning positively for the automotive giant, GM appears to be positioned for substantial momentum within the electric vehicle industry. Despite slight volatility and mixed ratings from analysts, factors underpinning the company's success veer toward optimism as the EV market continues to mature.
Overall, General Motors stands resilient amid changing market dynamics showcasing remarkable growth amid increasing competition from peers and paving its way forward toward more electrifying prospects.