Stock Update (NYSE:GM): U.S. government says it lost $11.2 billion on GM bailout

General Motors Company (NYSE:GM) [Reuters] – The U.S. government lost $11.2 billion on its bailout of General Motors Co, more than the $10.3 billion the Treasury Department estimated when it sold its remaining GM shares in December, according to a government report released on Wednesday. The $11.2 billion loss includes a write-off in March of the government’s remaining $826 million investment in “old” GM, the quarterly report by a Treasury watchdog said. The U.S. government spent about $50 billion to bail out GM. As a result of the company’s 2009 bankruptcy, the government’s investment was converted to a 61 percent equity stake in the Detroit-based automaker, plus preferred shares and a loan.
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General Motors Company (GM), currently valued at $54.83B, began trading this morning at $33.84.
 
During the trading session, GM traded between $33.84 to $34.34 with the price of the stock fluctuating between $30.11 to $41.85 over the last 52 weeks.
 
General Motors (GM) shares are currently priced at 10.93x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 14.52x earnings multiple for the same period.
 
And for dividend hunters, the company pays shareholders $1.20 per share annually in dividends, yielding 3.60%.
 
According to a consensus of 15 analysts, the earnings estimate of $1.03 per share would be $0.19 better than the year-ago quarter and a $0.14 sequential decrease. The full-year EPS estimate is $3.11 which would be a $0.07 worse than last year’s full-year earnings.
 
The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $40.63 Billion. If realized, that would be a 3.97% increase over the year-ago quarter.
 
In terms of ratings, Standpoint Research upgraded GM from Hold to Buy (Apr 7, 2014). Previously, Standpoint Research downgraded GM from Accumulate to Hold.
 
Investors should keep in mind is that the average price target is $42.44, which is 25.41% above where the stock opened this morning.
 
Summary (NYSE:GM) :  General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It also sells cars and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, the company offers connected safety, security and mobility solutions, and information technology services. The company, through its subsidiary, General Motors Financial Company, Inc. provides automotive financing services and lease products through GM dealerships in connection with the sale of used and new automobiles that target customers with sub-prime and prime credit bureau scores. The company was founded in 1908 and is based in Detroit, Michigan.
 
Tag Helper ~ Stock Code: GM | Common Company name: General Motors | Full Company name: General Motors Company (NYSE:GM) .

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