The value of GM stock decreased during the March 9th, 2020 to March 13th, 2020 timeframe. Shares closed the week at $24.71 per share, which represents a decrease of $3.98 per share, or 14 percent, compared to last week’s closing value of $28.69.
Movements in GM stock value for the week were as follows:
- Monday, March 9th: General Motors stock opened at $26.00 and closed at $24.69
- Tuesday, March 10th: GM stock opened at $25.98 and closed at $27.12
- Wednesday, March 11th: GM stock opened at $26.00 and closed at $26.00
- Thursday, March 12th: GM stock opened at $23.60 and closed at $23.04
- Friday, March 13th: General Motors stock opened at $24.60 and rose to $24.71 by market close
The above-average decrease in GM stock value is the fourth consecutive week of decline, following last week’s drop of 6 percent, which was preceded by a 12 percent drop.
Prior to the downward movement, GM shares experienced two consecutive weeks of growth, which in turn followed two weeks of decline. GM share values have been experiencing this continued ebb and flow since mid-2018, though the performance is ultimately a net loss for GM shareholders. The global impact of the coronavirus is negatively affecting the stock market as a whole. There are even claims that the infamous bug may have caused delays at the Flint Assembly plant in Michigan. However, the automaker is continuing mandatory overtime at the plant.
There is some good news, though. A recent analysis shows that GM’s full-size SUVs outsold all rivals combined in 2019. Additionally, new products are on the horizon, including the recently-announced GMC Hummer EV pickup, GM’s advanced new proprietary Ultium batteries, which debuted at GM EV Day this week, and new modular BEV3 platform, which will underpin the Cadillac Lyriq electric crossover and Cadillac Celestiq electric sedan.
Mary Barra at the GM EV Day presentation on March 4th.
For the most part, GM stock was in limbo throughout most of 2019, and has only faced more adversity in 2020. GM stock saw an initial jump in value as a result of overwhelmingly positive Q2 2019 earnings, wherein the automaker outperformed expectations. Several subsequent drops in value prior to the strike are believed to have been related to warning signs of an economic slowdown, along with various escalations with trade wars in China.
By comparison, shares of GM’s cross-town rival, the Ford Motor Company, decreased $0.86 per share, or 13 percent, this week.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2020/3/13 | 24.60 | 24.71 | 25.33 | 22.90 |
| 2020/3/12 | 23.60 | 23.04 | 24.35 | 22.50 |
| 2020/3/11 | 26 | 26 | 26.62 | 25.76 |
| 2020/3/10 | 25.98 | 27.12 | 27.14 | 24.59 |
| 2020/3/9 | 26 | 24.69 | 26.12 | 24.15 |
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, CT6) and closing various plants to focus on more profitable crossovers, SUVs and pickup trucks, such as the all-new 2021 Cadillac Escalade that was unveiled on February 4th.
The 2021 Cadillac Escalade was unveiled on Febuary 4th.
Seeking to further streamline its activities in unprofitable markets, General Motors also announced its intention to phase out the Holden brand in Australia and New Zealand, in addition to pulling the Chevrolet brand out of Thailand and selling its Rayong assembly plant to Great Wall Motors.
Despite these actions, the value of GM stock has struggled to surpass the $40 mark, spending most of its time stuck in the $33-$38 per share range. The chain of events is problematic given that the “new GM” had its Initial Public Offering (IPO) at $33 per share in November 2010, causing frustration upon many investors.
The Cruise Origin autonomous ride-sharing vehicle was unveiled in January 21st.
We remain interested in seeing how GM stock performs through the early stages of 2020, especially as the Detroit-based automaker continues the launch of its GEM-based vehicles for developing markets and begins to launch its all-new full-size SUVs and various new Cadillac models this year. In addition, the roll-out of its full-size pickup trucks is now complete, which means the company will benefit from an entire calendar year with a full lineup. All of these products are expected to contribute significantly to GM’s bottom line.
The automaker is also planning to roll out the Cruise Origin, its autonomous ride-sharing vehicle in 2022, which will be built at the GM Detroit-Hamtramck plant in Michigan. GM sees the robo-taxi service as a significant opportunity for growth.
Subscribe to GM Authority for ongoing GM stock news and complete GM news coverage.
Comments
The Covid-19 virus is the reason for the recent decline, but over a longer period the question is this: even if the current strategy would turn out to be successful, how will GM sell their future products outside the US? Profits made in China have to be split with SAIC so that won’t be the money maker. And they have fled all other worldwide markets. So as an investor, I wonder: OK, that AV/EV strategy might or might not work, but if it works, they have no existing customer base any more outside the US – in fact they will have a solid former customer base who has not forgotten how badly they were treated when GM left (Europe, India, Australia and soon probably also Korea): dealers closing, services being suspended, warranties not being met due to no dealers any more, etc. So why would this stock go any higher? I think it’s correctly priced under the current circumstances.
if gm succeeds as an AV/EV company, they can become a supplier to other manufacturers. perhaps that is wishful thinking but it is a possibility.
as far as consumer backlash if gm tried to re-enter these markets, i think most people have short term memory.
look at the boeing 737 max. that screw up resulted in hundreds of people getting killed. do you really think enough people will boycott that plane to make a difference once it is recertified?
Mike: Good comment, also don’t forget the millions of US customers who feel abandoned by GM when Mary threw away market share in sedans and coupes, favorite historic marques, and last, but not least in my case, the Volt. We probably won’t be back anytime soon. Her liquidation of GM for short term stock price manipulation (?) may not be reversible.
Customers aren’t buying Sedans and Coupes…and Wagons, so why build them?? What’s in your garage?
Blue: I already told you, a Volt fastback sedan, which I love; not an overblown SUV or an ugly CUV.
Volts didn’t sell in quantity and were unprofitable for GM. In addition, sales were declining. Generally in the market, hybrids don’t sell well. Even Toyota is down.
Suzy,
ST price manipulation? The stock has done nothing in years and BTW, the moves away from losing markets and elimination of unprofitable models was done in conjunction with the financial community. And she was generally applauded for those actions. If you want to see a real disaster, look at Ford. They had been sitting on their hands while GM was positioning for the future.
Miguel: I would argue that GM kept its stock price up (manipulated?) as it liquidated its traditional business to invest in these trendy new fads like autonomous vehicles and ride sharing which have yet to pay off, if ever. BTW the “financial community” has been the ruin of many a fine company.
The stock has never been up but has stayed in the basement, trading at a very low multiple. If it has been manipulated, (which I seriously doubt) it has been very unsuccessful.
GM has a ridiculously low market cap of 35B and stock multiple compared to a Toyota for example at 176B.
GM management has been trying to lift that by preparing the company for the future. The stock has not responded yet but may after this crisis if those new approaches pay off.
They need to do something different. If you stagnate or shrink (as GM has), you’re dying.
Miguel you appear to really understand what is going on.
GM has tried to remake them self as a smaller more efficient company that is more tech focused.
GM has cut cost by killing off segments that were not profitable and poured larger amounts into technology and into development. Much in the EV field but also in other areas of automotive tech.
While many companies are not able to build or develop their own tech GM is doing most of it all in house. They are also in a position to do work for others and sell tech or license tech to others much in the way Apple or Samsung does.
The Future May be more about technology development not manufacturing. This is where the strong companies are. Apple makes technology but does little to no mfg. they have made billion upon billions doing this. Same for many other tech companies.
Tesla to be honest would be doing much better if they sold their tech and got out of mfg. Mfg. has drained their money.
Ford is in real trouble as they have yet to lower their cost. They actually raised cost with the Aluminum trucks and it impacted their profits. Their cars tanked and they had to buy into an EV truck company to jump start their EV program.
The Mach E was even photographed leaving a GM proving ground giving us the impression GM had been retained to help Ford with their product.
While GM talks a lot of EV they are not walking away from ICE as it will still play a major part of their products.
The deal is automakers today can not continue to go as they have for years. They need to reinvent what they do and how they do it. Otherwise they will either have to partner, merge or they will have to close down as they will no longer be able to afford product development.
This is where GM could license technology to make money from even their competitors.
GM would fail if they made no changes. That is what hurt them in the past as they long ago needed to kill divisions and branches that were money losers. As painful as it is these things were overdo.
Building and selling cars is not equal for each mfg. cheap imports undercut as do new plants in country with no unions or legacy cost.
The real fear is China. If they finally learn how to build cars that are good and look good they could under cut pricing of everyone. But they still lack technology. This is where we can dominate if we can use it to make cars at lower cost.
That is the one thing nobody talks about but could be the main key. EV products with lower cost batteries can be cheaper to build and more profitable. This could lead to lower cost.
Most will share the same battery tech and motors. They just will tailor them to each products need. That make ps for lower development cost and less parts. Less labor to assemble too.
There also would be much less regulations to meet and testing needed.
Much of this is hinged on GM driving down the cost with their new batteries and components. Based on what we recently seen it appears they are well on the way.
People may be buying mor EV products because they may be the same or even lower priced in time.
Suzy Q
I would recommend the Honda Clarity PHEV,
(47 mile EV Range. 1.5L Engine) but Honda just killed the entire Clarity line.
Peter: As I currently understand it, Honda has killed the BEV (electric) Clarity but will continue to offer the PHEV/EREV version, whose specs you quote. Have you heard something different? Thanks.
Suzy Q
You’re right, the Clarity PHEV will still be stocked by California dealerships. In the rest of the country it will be available as a special order vehicle.
Peter: Wow, that makes even less sense than GM’s lousy marketing of the Volt. If I can assume that the Clarity technology performs anything like Voltec (I’ve never driven a Clarity) then like GM they are throwing away what could be, today, the optimum EV technology for suburban customers without a charging station on every corner, if only they get the message out and get customers into test drives.
with oil tanking thanks trump’s friends in saudi arabia and russia, it will be interesting to see how this affects the US shale industry and their employees when it comes to purchasing trucks.
throw in a corona recession and things can get very ugly for gm.
If anything people will buy more gas guzzlers (trucks), South Korea OTOH will probably shutdown like China, so they finally be exposed of the many parts imported to the US for their POS vehicles like Telluride..😉
Guestt
Lots of parts available for the POS Telluride. Now that Hyundai was forced to shut down its plant in Korea that builds POS Palisade and POS Santa Fe. Because a worker tested positive for Corona.
With little or no leadership from this administration, it’s hard to see ‘new’ GM not breaching it’s former all-time low ($18-something). Truck sales likely won’t come to the rescue – not after 4-5 record years preceding this era. GM will find it’s bottom … maybe 14 or 15?
It’ll bounce back to the usual mid-30s, I suppose.
Meanwhile, the div rate is now 6.15% – that’s the silver lining for now.
Sorry to say, but Dow futures are down 4%+ after the Fed cut rates to zero. Happy Monday! Hopefully things’ ll get better soon.
Ford is heading to penny stock status and may not make it through this major recession/depression. GM is in a better position but will still get hit hard. Our complete lack of leadership will make this crisis so much worse.
IMHO…I’d argue using the word “Price” instead of “Value”.
At its current Stock “Price”, you could make a case GM is a better “value” than it was a month ago.
30% off 20s in Q4 35%+ in Q1 if they do not stop building excess inventory
The biggest gorilla in the room is the thievery and incompetentce of Wall St. itself. Something very bad may happen there soon and probably a few arrests.