5 Stocks In Trouble as Americans Cut Back on Spending

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 76

General Motors Company (NYSE:GM) is a Michigan-based multinational automobile manufacturer that markets and sells its products under the Chevrolet, Buick, GMC, and Cadillac brands. Mark Delaney, a Goldman Sachs analyst, lowered the price target on General Motors Company (NYSE:GM) to $46 from $59 on June 1 and maintained a Buy rating on the shares. He is widely cutting estimates and price targets across the US auto sector to accurately account for additional supply chain challenges in the short-term and slower demand in the medium-term, the analyst told investors.

Among the hedge funds tracked by Insider Monkey, General Motors Company (NYSE:GM) was part of 76 public hedge fund portfolios at the end of Q1 2022, down from 90 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway is the largest shareholder of the company, with over 62 million shares worth $2.7 billion. 

Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:

“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are under-appreciated.”

You can also take a look at Michael Burry is Buying These 10 Stocks As Recession Fears Mount and Bill Gates’ Latest Stock Portfolio: Top 10 Picks. 

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