The value of GM stock increased during the June 3rd, 2019 – June 7th, 2019 timeframe. Shares closed the week at $35.49 per share, which represents an increase of $2.15 per share, or nearly 7 percent, compared to last week’s closing value of $33.34.
Movements in GM stock value for the week were as follows:
- Monday, June 3rd: GM stock opened the day (and the week) at $33.35 and closed at $33.70
- Tuesday, June 4th: opened at $34.38 and closed at $35.73
- Wednesday, June 5th: opened at $36.04 and closed at $35.84
- Thursday, June 6th: GM stock opened at $35.09 and closed at $35.19
- Friday, June 7th: General Motors stock opened at $35.31 and fell to $35.49 at market close
The growth in value experienced this week comes after four consecutive weeks of declines. Shares saw a weekly low of $33.08 (on Monday) and a weekly high of $36.14 per share (on Wednesday). 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, grew by $0.14 per share.
We posit that the rebound in GM stock value is associated with a potential resolution to the prolonged trade war between the United States and China, which has intensified over the past few months. What’s more, the Trump administration announced a surprise Mexico tariff threat late last week, correlating to the precipitous GM stock sell-off that day. Luckily, that situation was promptly resolved. Tariffs and trade wars create a significant amount of uncertainty in global economies and markets, and stock markets typically react negatively to trade wars and uncertainty. In addition, GM relies on several Mexico plants to produce vehicles for North America, including the United States.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2019/6/7 | 35.31 | 35.49 | 35.55 | 35.15 |
| 2019/6/6 | 35.09 | 35.19 | 35.44 | 34.46 |
| 2019/6/5 | 36.04 | 35.84 | 36.14 | 35.33 |
| 2019/6/4 | 34.38 | 35.73 | 35.77 | 34.3 |
| 2019/6/3 | 33.35 | 33.7 | 33.83 | 33.08 |
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 noteworthy 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.
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.
Subscribe to GM Authority for ongoing GM stock news and complete GM news coverage.
Comment
One should remember that total return includes both the stock price appreciation and the dividend received. For many investors, GM stock has been purchased just for the 4% dividend yield.
Looking at the market overall, market prices have gone up not only because of the resolution of the Mexican tariffs but also because ‘bad news is good news’. In this case, some metrics are weaker then expected (jobs numbers) and it looks like we may get another interest rate cut. Treasury yields have already come down a lot; and another Fed cut will be a stimulus for the economy.