Company Update (NYSE:GM): Auto task force member: didn’t know about GM’s faulty ignition switch

General Motors Company (NYSE:GM) [Reuters] – A former member of the U.S. auto task force that helped restructure General Motors Co in 2009 during its bankruptcy said he had no idea about the defective ignition switches linked to at least 13 deaths. Harry Wilson, speaking at a conference in Washington, said the task force on which he served never met with lower level GM engineers and the crisis brought on by the faulty switch showed the cultural problems at the largest U.S. automaker. “We didn’t know about anything like this,” he said at an event hosted by the Brooking Institution of the defective part. GM last week was fined a record $35 million by the U.S. National Highway Traffic Safety Administration for its delayed response on the faulty switch, which engineers first discovered in 2001.
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General Motors Company (GM), with a current value of $53.66B, started trading this morning at $33.15.
 
Today’s price range has been between $33.12 and $33.54 per share with a one year range of $31.13 to $41.85.
 
GM shares are currently priced at 10.43x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 16.90x forward p/e ratio.
 
The company pays shareholders $1.20 per share in dividend income per year, for a current yield of 3.50%.
 
Consensus earnings for the current quarter by the 15 sell-side analysts covering the stock is an estimate of $1.00 per share, which would be $0.16 better than the year-ago quarter and a $0.13 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $3.17 would be a $0.01 setback when compared to the previous year’s annual results.
 
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.
 
More recently, Standpoint Research upgraded GM from Hold to Buy (Apr 7, 2014). Previously, Standpoint Research downgraded GM from Accumulate to Hold.
 
With the above information in mind, readers should note that the average price target is $43.00, which is 29.71% 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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