2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 90
General Motors Company (NYSE:GM) is experiencing an influx in its vehicle demand and is topping the charts in 2022, which makes it the runner-up automotive stock to invest in now. This March, the company reportedly secured more than 65,000 reservations for its electric GMC Hummer pickups and SUVs, beating its initial expectations. General Motors Company (NYSE:GM) is making efforts to meet this demand with increased production activity but remains conservative about the fulfillment of new orders until 2024, due to chip shortages among other reservations. On April 12, General Motors Company (NYSE:GM) announced that it has signed a multi-year sourcing agreement with Glencore Plc (OTC:GLNCY) for the supply of cobalt, which is an essential component in EV batteries.
At the end of April, General Motors Company (NYSE:GM) released its earnings report for the fiscal first quarter of 2022. The company reported earnings per share of $2.09, beating estimates by $0.43. Moreover, the company generated revenues of $35.98 billion, up 10.79% year over year from $32.47 billion.
Some analysts are holding bullish outlooks on General Motors Company (NYSE:GM) and dismissing the impact of near-term tightening market conditions and supply constraints on the automotive industry. This May, Berenberg analyst Adrian Yanoshik initiated coverage of General Motors Company (NYSE:GM) with a Buy rating and a $55 price target.
At the close of Q4 2021, 90 hedge funds were bullish on General Motors Company (NYSE:GM) and held stakes worth $7.13 billion in the company. This is compared to 77 positions in the preceding quarter with stakes worth $6.41 billion. The analyst and investor sentiment for the stock is positive.
As of March 31, 2022, Skylands Capital is the dominating stakeholder in General Motors Company (NYSE:GM) having stakes of more than $36.59 million in the automaker. The investment covers 4.42% of Skylands Capital’s Q1 2022 investment portfolio.
Oakmark Funds mentioned General Motors Company (NYSE:GM) in its “Oakmark Global Fund” first-quarter 2022 investor letter. Here is what the firm said:
“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”
