1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
YTD Share Price Decline as of August 19: 35.08%
General Motors Company (NYSE:GM) is an American multinational automotive company. Warren Buffett owns 52.8 million shares of General Motors Company (NYSE:GM) in the second quarter of 2022, worth $1.6 billion, representing 0.55% of the total 13F portfolio. Despite a 15% cut in the General Motors Company (NYSE:GM) stake in Q2, Buffett owns a sizable position in the firm although the stock is down 35% year to date as of August 19.
On August 19, General Motors Company (NYSE:GM) declared a $0.09 per share quarterly dividend. The dividend is distributable on September 15, for shareholders of record on August 31. The board raised the capacity of its share existing repurchase program to $5 billion, up from the $3.3 billion priorly remaining under the program.
Benchmark analyst Michael Ward on July 27 maintained a Buy recommendation on General Motors Company (NYSE:GM) but lowered the price target on the stock to $60 from $75 following the company’s Q2 report. He has slashed his 2023 earnings estimate to factor in higher interest costs at GM Financial and reduced his target multiple to the low end of his range.
According to Insider Monkey’s Q2 data, 75 hedge funds were bullish on General Motors Company (NYSE:GM), compared to 76 funds in the earlier quarter. Harris Associates is a prominent position holder in 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.”
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