General Motors (GM) stock has fallen significantly this year, but Patricia Russo, a director at the auto giant, bought shares this week. Concerns about consumer spending in light of Covid-19 have hurt GM’s stock badly.
Russo, who is currently chairman of Hewlett Packard Enterprise (HPE), has been a GM director since 2009. She paid $295,000 on May 12 for 12,700 GM shares, an average price of $23.18 each. In total she now owns 25,000 GM shares, according to a form she filed with the Securities and Exchange Commission.
Russo was CEO of Lucent from 2002 to 2006, and then at Alcatel-Lucent until 2008.
GM beat first-quarter earnings expectations earlier this month, but even that didn’t help its stock price much, which is stuck at $24.70, down some 29% over the last 3 months.
Credit Suisse analyst Dan Levy noted that apart from the Covid-19 woes, the company “has been tainted by its ’09 bankruptcy.” Nevertheless, he reaffirmed an Outperform rating and a $33 target price on GM stock.
“The silver lining to the current disruption is that GM can validate it does in fact have a healthier business model today than it did in the past, and that it can manage through tough industry conditions better than investors appreciate” wrote Levy.
TipRanks data reveals a Moderate Buy consensus outlook for General Motors. Out of 12 analysts, 8 assign Buys, 3 have Holds and 1 has a Sell. The $30.60 average price target though indicates 20% upside potential over the coming 12 months. (See General Motors stock analysis on TipRanks)
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