2. General Motors Company (NYSE:GM)
Soros Fund Management’s Stake Value: $50,422,000
Percentage of Soros Fund Management’s 13F Portfolio: 0.68%
Number of Hedge Fund Holders: 90
PE ratio: 6.20
This February General Motors Company (NYSE:GM) released earnings data for the fiscal fourth quarter of 2021. The company’s earnings per share for the quarter were valued at $1.35, beating expert EPS estimates by $0.20, and the company generated $33.58 billion in quarterly revenues.
On February 2, 2022, RBC Capital analyst Joseph Spak raised his price target on General Motors Company (NYSE:GM) to $85 from $74 and reiterated an Outperform rating on the shares in light of the company’s strong Q4 2021 earnings.
General Motors Company (NYSE:GM) has always been an investors’ favorite. As of the fourth quarter of 2021, 90 hedge funds were found to have held stakes in the company. The total value of these stakes amounted to $7.13 billion. This is compared to 77 positions in the third quarter of 2021, with a total stake of $6.41 billion. Judging by these numbers, it is evident that the hedge fund sentiment for General Motors Company (NYSE:GM) is positive.
Here’s what RLT Capital had to say about General Motors Company (NYSE:GM) in its fourth-quarter 2021 investor letter:
“Despite my enthusiasm for GM’s competitive positioning in the years to come, it’s the decidedly unsexy legacy operations that keep GM’s cash registers ringing in the here and now. On that front, investor enthusiasm for the current manufacturing – and financing – of internal combustion engines remains pretty muted by most measures. And understandably so:
-GM’s operations are capital intensive,
-GM’s marketplace is highly competitive (and with excess capacity to boot),
-GM’s supply chain is super complex (e.g., semi shortage, tariffs, etc),
-GM’s labor force is (very) unionized,
-GM’s liabilities are aplenty and long-dated (e.g., warranties, recalls, lawsuits, etc),
-GM’s operations have ample – and unavoidable – commodity exposure (in both raw materials & the resulting impact on product demand/mix), and
-There’s no shortage of debt to consider.Although that hardly represents a comprehensive accounting of the risks that crowd GM’s disclosures, it’s more than sufficient to obscure the many positives to be found under GM’s hood. Of particular note is GM’s strong showing across seemingly every facet of the changes looming over the broader automotive industry:
-Internal Combustion Engines (ICE): If you think all the talk about electric and/or autonomous vehicles is either total hogwash or still decades into the future . . . GM’s legacy business has you covered. For as long as consumers continue to demand ICE powered vehicles, GM will capably meet said demand. In fact, despite the many headwinds faced by the entire automotive industry in 2021, GM still capably sold ~6.3 million vehicles, and generated ~$113.6 billion of automotive-related revenues…” (Click here to see the full text)
