Major Purchase Alert: ALFRED KELLY JR Invests $607K In General Motors Stock

A significant insider buy by ALFRED KELLY JR, Board Member at General Motors GM, was executed on January 30, and reported in the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that JR made a notable purchase of 12,000 shares of General Motors, valuing at $607,920.

As of Friday morning, General Motors shares are up by 2.2%, currently priced at $50.59.

Unveiling the Story Behind General Motors

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its us market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021. 2023's share was 16.5%. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but after a 2023 accident GM decided in December 2024 that it will focus on AVs in personal vehicles. GM should own 100% of Cruise by 2025. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

General Motors's Economic Impact: An Analysis

Revenue Growth: General Motors displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 10.99%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 10.17%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, General Motors exhibits below-average bottom-line performance with a current EPS of -1.4.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.07, caution is advised due to increased financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 7.77, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.3, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 7.02, General Motors presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of General Motors's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.