Unusual Put Option Trade in General Motors Worth $670K

On May 4, 2023 at 09:59:17 ET an unusually large $670.00K block of Put contracts in General Motors (GM) was bought, with a strike price of $31.00 / share, expiring in 260 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 3.07 sigmas above the mean, placing it in the 99.92th percentile of all recent large trades made in GM options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 2116 funds or institutions reporting positions in General Motors. This is an increase of 44 owner(s) or 2.12% in the last quarter. Average portfolio weight of all funds dedicated to GM is 0.35%, a decrease of 2.65%. Total shares owned by institutions decreased in the last three months by 1.82% to 1,354,744K shares. The put/call ratio of GM is 0.89, indicating a bullish outlook.

Analyst Price Forecast Suggests 50.74% Upside

As of April 24, 2023, the average one-year price target for General Motors is 48.96. The forecasts range from a low of 30.30 to a high of $90.30. The average price target represents an increase of 50.74% from its latest reported closing price of 32.48.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for General Motors is 165,001MM, an increase of 2.65%. The projected annual non-GAAP EPS is 6.16.

What are Other Shareholders Doing?

Capital Research Global Investors holds 78,404K shares representing 5.64% ownership of the company. In it’s prior filing, the firm reported owning 78,065K shares, representing an increase of 0.43%. The firm decreased its portfolio allocation in GM by 3.15% over the last quarter.

Capital World Investors holds 54,474K shares representing 3.92% ownership of the company. In it’s prior filing, the firm reported owning 52,800K shares, representing an increase of 3.07%. The firm increased its portfolio allocation in GM by 2.68% over the last quarter.

Berkshire Hathaway holds 50,000K shares representing 3.60% ownership of the company. No change in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 40,959K shares representing 2.95% ownership of the company. In it’s prior filing, the firm reported owning 41,294K shares, representing a decrease of 0.82%. The firm decreased its portfolio allocation in GM by 3.98% over the last quarter.

Harris Associates L P holds 39,376K shares representing 2.83% ownership of the company. In it’s prior filing, the firm reported owning 41,531K shares, representing a decrease of 5.47%. The firm decreased its portfolio allocation in GM by 6.47% over the last quarter.

General Motors Declares $0.09 Dividend

On April 24, 2023 the company declared a regular quarterly dividend of $0.09 per share ($0.36 annualized). Shareholders of record as of June 2, 2023 will receive the payment on June 15, 2023. Previously, the company paid $0.09 per share.

At the current share price of $32.48 / share, the stock’s dividend yield is 1.11%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.50%, the lowest has been 0.86%, and the highest has been 8.64%. The standard deviation of yields is 1.66 (n=127).

The current dividend yield is 1.44 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.05. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

General Motors Background Information
(This description is provided by the company.)

General Motors is a global company committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet,Buick,GMC,Cadillac, Baojun and Wuling brands.

See all General Motors regulatory filings.

This article originally appeared on Fintel

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