General Motors (NYSE: GM) - Recalling 1 M Vehicles & Price Action

General Motors Company (NYSE: GM) is among the oldest and the largest automaker in the United States, with a 17% share in the automotive market. GM stock raised around 31.67% in 2023, and from then dropped 36.84%. General Motors to recall cars due to faulty airbags causing GM stock to dip 2.17% to $32.40.

The federal auto safety regulators have taken action against faulty airbags supplied by Knoxville, Tennessee-based ARC Automotive. After their product was found to be involved in multiple car crashes, as reported on May 12 by the National Highway Traffic Safety Administration (NHTSA). Forcing GM to recall 994,763 cars using the faulty equipment.

General Motors – Financial Analysis

At press time, GM stock (NYSE: GM) was trading at $32.40 with a drop of 2.17%. Previous close and open were at $33.12 and $33.25, respectively. With an average volume of 15.10 Million shares, the market cap was $45.04 Billion. Analysts have placed the price target at $49.06 with an upside of 51.4%.

In the last 52 weeks, the stock price dropped by 12.67%. Concerning March 2023 data, the year-on-year (YoY) changes in revenue were up by 11.13% to $39.99 Billion, revenue per share was $112.45, and the quarterly revenue growth was up by 11.10%. With a gross profit of $21.15 Billion, the total cash in hand was $23.81 Billion, and debt of $116.83 Billion.

Bridging the net profit margin down by 26.68% to $5.99. The earnings per share grew by 5.74% to $2.21, and EBITDA dropped by 1.87% to $3.04 Billion. The last earnings were reported on April 25, 2023, with revenue estimated to be $38.55 Billion. It was reported to be $39.985 Billion, with a surprise of $1.435 billion and a hike of 3.72%.

The next earnings shall be reported on July 25, 2023, with an estimated revenue of $41.233 billion.

General Motors – Candle Exploration

The current price is close to the yearly low, and the stock price is entering the demand zone. If the price breaks the trend line, an upward momentum can be expected. However, a downward-sloping EMA and lower range of RSI indicate otherwise.

If the price moves upward and crosses the trend line with confirmation, it shall have to fight immediate resistance at $36.94. The price could consolidate here for some time before going ahead. A piece of positive news and momentum in the industry index could cause the price to rally and enter the supply zone.

The chances of a stock price going below $30.42 are rare, but a downfall might begin if it goes.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing