The US National Highway Traffic Safety Administration (NHTSA) announced earlier this week that it was probing if additional 1.7 million sport-utility vehicles from the 2010-2016 model years, produced by GM, should be recalled because of windshield wiper failures.
General Motors shares closed higher for a third consecutive trading session in New York on Wednesday. It has also been the sharpest daily surge since October 31st. The stock went up 1.15% ($0.42) to $36.88, after touching an intraday high at $37.00, or a price level not seen since November 2nd ($37.28).
Shares of General Motors Company have retreated 10.03% so far in 2018 compared with a 5.25% gain for the benchmark index, S&P 500 (SPX).
In 2017, General Motors’ stock surged 17.65%, thus, it again underperformed the S&P 500, which registered a 19.42% return.
In August 2016, as many as 367 800 GMC Terrain and Chevrolet Equinox SUVs, manufactured in 2013, were recalled by GM in the United States due to the same issue. The US auto maker recalled these SUVs ”because warranty data showed a higher-than-expected failure rate.” GM had also said it would continue to monitor field data on other model years of GMC Terrain and Chevrolet Equinox.
The recalls occurred after in late 2015 a brand quality manager from GM Canada highlighted a possible safety issue associated with windshield wiper failures in Canada.
According to GM, data revealed considerably higher frequency of field incidents in regions of Canada where large amounts of road salt had been used. This led to the recall of 141 407 GMC Terrain and Chevrolet Equinox SUVs from the 2010-2017 model years in Canada in June 2016.
The NHTSA said that it had received 249 complaints since August 2016 regarding problematic windshield wipers in GM SUVs from five other model years. The agency said it was investigating if GM should expand the recall to include additional 1.7 million SUVs in the United States.
According to CNN Money, the 21 analysts, offering 12-month forecasts regarding General Motors Companys stock price, have a median target of $45.00, with a high estimate of $60.00 and a low estimate of $33.00. The median estimate represents a 22.02% upside compared to the closing price of $36.88 on November 7th.
The same media also reported that 11 out of 23 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $35.35
R1 – $37.96
R2 – $39.90
R3 – $42.51
R4 – $45.13
S1 – $33.41
S2 – $30.80
S3 – $28.86
S4 – $26.93
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