Traders Purchase High Volume of Put Options on General Motors (NYSE:GM)

General Motors (NYSE:GM) (TSE:GMM.U) was the target of some unusual options trading activity on Wednesday. Investors acquired 66,908 put options on the company. This represents an increase of 32% compared to the average volume of 50,611 put options.

General Motors Price Performance

Shares of NYSE:GM opened at $50.93 on Thursday. The company has a quick ratio of 0.98, a current ratio of 1.13 and a debt-to-equity ratio of 1.38. The company has a 50-day moving average price of $49.07 and a 200 day moving average price of $50.55. General Motors has a 52 week low of $38.96 and a 52 week high of $61.24. The company has a market cap of $50.68 billion, a P/E ratio of 8.28, a PEG ratio of 0.67 and a beta of 1.42.

General Motors (NYSE:GM) (TSE:GMM.U) last posted its quarterly earnings results on Tuesday, January 28th. The auto manufacturer reported $1.92 earnings per share for the quarter, beating analysts’ consensus estimates of $1.75 by $0.17. General Motors had a return on equity of 15.29% and a net margin of 3.21%. Research analysts predict that General Motors will post 11.44 earnings per share for the current year.

General Motors declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 26th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the auto manufacturer to purchase up to 12.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

General Motors Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 20th. Investors of record on Friday, March 7th were paid a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.94%. The ex-dividend date of this dividend was Friday, March 7th. General Motors’s dividend payout ratio (DPR) is 7.80%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on GM shares. TD Cowen began coverage on shares of General Motors in a research report on Friday, March 7th. They set a “buy” rating and a $105.00 price objective for the company. Hsbc Global Res downgraded shares of General Motors from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, December 11th. StockNews.com lowered General Motors from a “buy” rating to a “hold” rating in a report on Wednesday, February 5th. HSBC downgraded General Motors from a “buy” rating to a “hold” rating and set a $58.00 target price for the company. in a report on Wednesday, December 11th. Finally, Cowen started coverage on General Motors in a research note on Thursday, March 6th. They set a “buy” rating on the stock. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $63.06.

Insider Activity

In other General Motors news, Director Alfred F. Kelly, Jr. acquired 12,000 shares of the company’s stock in a transaction dated Thursday, January 30th. The shares were acquired at an average price of $50.66 per share, for a total transaction of $607,920.00. Following the acquisition, the director now owns 13,714 shares in the company, valued at $694,751.24. The trade was a 700.12 % increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.72% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Thrivent Financial for Lutherans lifted its holdings in shares of General Motors by 1.0% in the third quarter. Thrivent Financial for Lutherans now owns 52,193 shares of the auto manufacturer’s stock valued at $2,340,000 after purchasing an additional 539 shares in the last quarter. Advisors Asset Management Inc. lifted its stake in General Motors by 54.1% in the 3rd quarter. Advisors Asset Management Inc. now owns 7,075 shares of the auto manufacturer’s stock valued at $317,000 after buying an additional 2,484 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in General Motors during the 3rd quarter valued at $1,998,000. Nwam LLC purchased a new position in General Motors during the third quarter worth $247,000. Finally, Great Valley Advisor Group Inc. raised its holdings in shares of General Motors by 12.2% in the third quarter. Great Valley Advisor Group Inc. now owns 17,269 shares of the auto manufacturer’s stock worth $774,000 after acquiring an additional 1,881 shares during the last quarter. Hedge funds and other institutional investors own 92.67% of the company’s stock.

General Motors Company Profile

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.