How to buy General Motors shares
Own General Motors shares in just a few minutes.
General Motors Company is an auto manufacturers business with stocks listed in the US. General Motors shares (GM) are listed on the NYSE and all prices are listed in US Dollars.
How to buy shares in General Motors
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for General Motors. Find the share by name or ticker symbol: GM. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until General Motors reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of General Motors, depending on your broker.
- Check in on your investment. Congratulations, you own a part of General Motors. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- General Motors key stats
- Compare share trading platforms
- Is General Motors stock a buy or sell?
- General Motors performance over time
- Can I short General Motors shares?
- Is General Motors suitable for ethical investing?
- Are General Motors shares over-valued?
- General Motors's financials
- How volatile are General Motors shares?
- Does General Motors pay a dividend?
- Other common questions
General Motors share priceUse our graph to track the performance of GM stocks over time.
General Motors shares at a glance
|52-week range||USD$14.33 - USD$38.96|
|50-day moving average||USD$29.7031|
|200-day moving average||USD$25.5693|
|Dividend yield||USD$1.52 (6.77%)|
|Earnings per share (TTM)||USD$1.058|
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Is it a good time to buy General Motors stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is General Motors under- or over-valued?
Valuing General Motors stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of General Motors's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
General Motors's P/E ratio
General Motors's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, General Motors shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
General Motors's PEG ratio
General Motors's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.704. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into General Motors's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
General Motors's EBITDA
General Motors's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$8.3 billion.
The EBITDA is a measure of a General Motors's overall financial performance and is widely used to measure a its profitability.
General Motors financials
|Revenue TTM||US$115.8 billion|
|Operating margin TTM||2.62%|
|Gross profit TTM||US$14.1 billion|
|Return on assets TTM||0.81%|
|Return on equity TTM||3.59%|
|Market capitalisation||US$41.7 billion|
TTM: trailing 12 months
Shorting General Motors shares
There are currently 19.2 million General Motors shares held short by investors – that's known as General Motors's "short interest". This figure is 6.6% up from 18.0 million last month.
There are a few different ways that this level of interest in shorting General Motors shares can be evaluated.
General Motors's "short interest ratio" (SIR)
General Motors's "short interest ratio" (SIR) is the quantity of General Motors shares currently shorted divided by the average quantity of General Motors shares traded daily (recently around 17.6 million). General Motors's SIR currently stands at 1.09. In other words for every 100,000 General Motors shares traded daily on the market, roughly 1090 shares are currently held short.
However General Motors's short interest can also be evaluated against the total number of General Motors shares, or, against the total number of tradable General Motors shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case General Motors's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 General Motors shares in existence, roughly 10 shares are currently held short) or 0.0134% of the tradable shares (for every 100,000 tradable General Motors shares, roughly 13 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against General Motors.
Find out more about how you can short General Motors stock.
General Motors's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like General Motors.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
General Motors's total ESG risk score
Total ESG risk: 33.75
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and General Motors's overall score of 33.75 (as at 07/31/2020) is pretty weak – landing it in it in the 65th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like General Motors is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
General Motors's environmental score
Environmental score: 13.14/100
General Motors's environmental score of 13.14 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that General Motors is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
General Motors's social score
Social score: 13.18/100
General Motors's social score of 13.18 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that General Motors is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
General Motors's governance score
Governance score: 11.94/100
General Motors's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that General Motors is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
General Motors's controversy score
Controversy score: 4/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. General Motors scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that General Motors has a damaged public profile.
Environmental, social, and governance (ESG) summary
|Total ESG score||33.75|
|Total ESG percentile||64.62|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||4|
General Motors share dividends
Dividend payout ratio: 108.57% of net profits
Recently General Motors has paid out, on average, around 108.57% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 6.77% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), General Motors shareholders could enjoy a 6.77% return on their shares, in the form of dividend payments. In General Motors's case, that would currently equate to about $1.52 per share.
General Motors's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
General Motors's most recent dividend payout was on 19 March 2020. The latest dividend was paid out to all shareholders who bought their shares by 4 March 2020 (the "ex-dividend date").
General Motors share price volatility
Over the last 12 months, General Motors's shares have ranged in value from as little as US$14.33 up to US$38.96. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while General Motors's is 1.4721. This would suggest that General Motors's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
General Motors overview
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names. The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, crisis assist, stolen vehicle assistance, roadside assistance, and turn-by-turn navigation, as well as connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity. Further, the company provides automotive financing services; and operates an online new vehicle store. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
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