04. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
Share Price as of September 27: $46.48
General Motors Company (NYSE:GM) is a leading American automotive manufacturer known for its robust lineup of vehicles under the Chevrolet, Buick, GMC, and Cadillac brands. The company reported strong financial results for the second quarter of 2024, with earnings per share (EPS) of $3.06, surpassing analyst expectations of $2.7. This performance was driven by increased demand for its vehicles, especially in the electric vehicle (EV) segment, and strategic cost management initiatives.
General Motors Company (NYSE:GM) has shown impressive growth in its EV portfolio, with U.S. EV deliveries increasing by 40% year-over-year, well above the industry growth rate of 11%. The launch of new models, such as the Chevrolet Equinox EV and the Cadillac LYRIQ, has contributed significantly to this growth. The company’s EV strategy aims to capture more market share by introducing models that cater to a broad spectrum of customers, including affordable EVs like the Chevrolet Bolt EV. Furthermore, General Motors Company (NYSE:GM) efforts to secure a partnership with Tesla for access to its charging network and the continued rollout of the IONNA fast charging venture are likely to strengthen its position in the EV market.
On the financial front, General Motors Company (NYSE:GM) reported revenues of $48 billion for Q2 2024, a 7% increase from the previous year, driven by stable pricing and higher wholesale volumes in North America. The company’s EBIT-adjusted margin stood at 9.3%, showcasing strong operational efficiency. Additionally, General Motors Company (NYSE:GM) adjusted automotive free cash flow was $5.3 billion, reflecting robust core performance and disciplined capital allocation. The company has also been actively repurchasing shares, retiring 22 million shares in the second quarter and projecting a total retirement of around 250 million shares under its ongoing stock buyback programs.
General Motors Company (NYSE:GM) strong financial position and its commitment to shareholder returns are evident, with a significant reduction in its outstanding share count. The number of hedge funds holding GM’s stock also increased to 78 in Q2 2024, compared to 72 in the previous quarter, indicating growing investor confidence. With continued focus on EV growth, strategic cost-cutting measures, and share buybacks, GM remains an attractive investment under $50 for those seeking exposure to the automotive sector’s transformation.
Diamond Hill Large Cap Concentrated Strategy stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:
“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”
