4. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
Berkshire’s Holding Period: 11 Years
General Motors Company (NYSE:GM) is a Michigan-based multinational automotive firm. Warren Buffett has been a long-term General Motors Company (NYSE:GM) bull, and he has maintained his stake in the firm since the first quarter of 2012. In Q2 2022, the billionaire owned approximately 53 million General Motors Company (NYSE:GM) shares, worth $1.67 billion, representing 0.55% of the total 13F portfolio. The company on August 19 reinstated its quarterly dividend of $0.09 per share, and raised share repurchase capacity to $5 billion. The dividend is payable on September 15, to shareholders of record as of August 31.
Wedbush analyst Daniel Ives on July 27 reaffirmed an Outperform rating on General Motors Company (NYSE:GM) and lowered the price target on the stock to $42 from $50. The analyst observed that General Motors Company (NYSE:GM) reported Q2 results which were plagued by several supply chain issues, which he views as a strong short-term headwind for the company. However, the analyst believes General Motors Company (NYSE:GM) has a robust EV vision for the next decade, and the company is planning to invest $35 billion in EV/AV product development to transition into an all-EV strategy by the end of the decade. General Motors Company (NYSE:GM) also reiterated its guidance for the full-year 2022, with solid assumptions for the second half of the year, the analyst told investors.
According to Insider Monkey’s data, 75 hedge funds were bullish on General Motors Company (NYSE:GM) at the conclusion of June 2022, compared to 76 funds in the previous quarter. Harris Associates is one of the largest stakeholders of the company, with 43.6 million shares worth $1.38 billion.
Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:
“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 under-appreciated.”
