GM Stock Value Drops 5 Percent During Week Of May 20 – May 24, 2019
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The value of GM stock decreased during the May 20th, 2019 – May 24th, 2019 timeframe. Shares closed the week at $35.12 per share, which represents a decrease of $1.88 per share, or over 5 percent, compared to last week’s closing value of $37.00.
Movements in GM stock value for the week were as follows:
- Monday, May 20th: GM stock opened the day (and the week) at $37.00 and closed at $36.97
- Tuesday, May 21st: GM stock opened at $37.00 and closed at $37.13
- Wednesday, May 22nd: opened at $37.00 and closed at $35.55
- Thursday, May 23rd: GM stock opened at $35.15 and closed at $35.13
- Friday, May 24th: General Motors stock opened at $35.34 and fell to $35.12 at market close
The decline in value experienced this week marks the third consecutive weekly drop for GM stock after four consecutive weeks of gains. Shares saw a weekly low of $34.35 (on Thursday) and a weekly high of $37.24 per share (on Tuesday). As such, the value has remained below the $40 per share mark – which the stock has briefly surpassed five times so far this year. By comparison, shares of GM’s cross-town rival, the Ford Motor Company, fell by $0.46 per share.
We posit that the decline in GM stock value this week was the result of the prolonged trade war between the United States and China, which continued to send waves through the stock market and the economies of both countries. The Dow Jones Industrial Average, for instance, decreased slightly during the week as well.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2019/5/24 | 35.34 | 35.12 | 35.42 | 34.8735 |
| 2019/5/23 | 35.15 | 35.13 | 35.18 | 34.35 |
| 2019/5/22 | 37 | 35.55 | 37.05 | 35.41 |
| 2019/5/21 | 37 | 37.13 | 37.24 | 36.73 |
| 2019/5/20 | 37 | 36.97 | 37 | 36.64 |
Over the last few years, GM has taken many steps to increase the value of its stock, including exiting markets where it can’t find ways to turn a profit (such as Europe, South Africa and India), closing plants in various parts of the world, divesting loss-making divisions (such as Opel-Vauxhall), making adjustments to its business model in order to prioritize profitability over chasing market share goals, focusing on its Cadillac luxury brand to increase its share of high-profit automobiles, investing heavily into new-age mobility ventures such as electric vehicles and autonomous driving tech, while discontinuing some sedans (Cruze, Impala, LaCrosse, XTS) to focus on more profitable crossovers, SUVs, and pickup trucks.
The 2020 Cadillac XT6 is one of the all-new models meant to reinvigorate the Cadillac brand as part of GM’s strategy to increase the brand’s return
Despite these notable actions, the value of GM stock has struggled to surpass the $40 mark, spending most of its time in the $33-$38 per share range. By comparison, the value of the “new GM’s” IPO was $33 per share in November 2010. The circumstance has had many investors frustrated, though the current value of $35.12 represents an improvement over the IPO price.
GM Cruise AV prototype testing in October 2018
It will be interesting to see how GM stock performs during the rest of the year, especially as the Detroit-based automaker launches its GEM-based vehicles for developing markets, completes the roll-out of its full-size pickup trucks, begins to launch its all-new full-size SUVs and various new Cadillac models – all products that are expected to contribute significantly to its bottom line. In addition, the automaker is planning to roll out an autonomous ride-sharing service from its Cruise division by the end of 2019. GM sees it as a “trillion-dollar opportunity”, with Cruise AV division on track to launch the service in limited markets by the end of this year.
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buy around 33 and sell around 40. repeat. almost as reliable as the tides.
on the bright side, they are not tesla. they got hammered this week.
GM’s been stuck in that 33-40 trading range since their 2010 IPO.
It dipped into the ‘teens once, made it up to 45 once.
But unless you’re a day trader, or short/long trader, or GM mgt who gets their exercisable options at artificially-
depressed prices, GM’s not a buy & hold for the retail investor.
They need to step up their game with Chevy trucks. Not GMC, Chevrolet. It’s the one vehicle that’s kept the machine rolling.. Having this artificial glass ceiling over Chevrolet in it’s entirety (minus race cars) hurts the company. Something like keeping Chevrolet’s Gen 5 Small Block 6.2 engine out of the Trail Boss launch for instance was ridiculous. GMC gets the top dog iconic Small Block but not Chevy? The lack of top trim interiors, options, AWD etc have only served to damage their main source of income. Without a strong Chevrolet what is GM? How could any investor be ok with this?
I guess you didn’t hear the news that the 2020 Trail Boss and RST trims have the option of the 6.2 huh.
Yes I did. Where was it at launch? The pent up excitement for the Trail Boss was huge from Chevrolet enthusiasts. Finally something to potentially rival Ford’s Raptor. GM via Chevrolet could have made a pile of money in up sales from the 5.3 to the 6.2. The 6.2 is the Gen 5 Chevrolet Smallblock that every Chevy guy wanted. Yet Chevy didn’t even get it. GMC did for their AT4.
Great for GMC people who wanted the AT4, terrible for Chevrolet truck buyers who wanted the Trail Boss. GM pulls this stunt all the time on everything Chevrolet that isn’t a race car (Corvette/Camaro). They’ve lost a lot of loyalty and a lot of money by holding back Chevy just to protect GMC and Buick. They could have made a fortune up selling SIlverado buyers into Denali trims over the last 2 decades. Yet they wouldn’t let Chevy have a thing.
How’s that Chinese strategy working out? It’s the tariff uncertainties that’s killing the multinational players, even ones a small as Volvo.
Just a comment on Ford. That stock also took a hit this week, but both GM and F are considered ‘ large value’ and overall value stocks have lagged growth category recently. Both are also considered undervalued by Morningstar.
F, closed at $9.83. Year range $7.41-$12.15
GM, closed at $35.12. Year range $30.56-$45.00
keep letting demented Mary and her cronies make their dumb decisions and that’s what you get