Yesterday General Motors Company (GM) revealed plans to invest as much as 10 billion reais ($2.653 billion*) in two of its facilities, located in the Brazilian state of Sao Paulo, over a period of five years.
General Motors shares closed higher for the fourth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest daily surge since March 11th. The stock went up 0.76% ($0.29) to $38.27, after touching an intraday high at $38.75, or a price level not seen since March 14th ($38.82).
Shares of General Motors Company have risen 14.41% so far in 2019 compared with a 12.99% gain for the benchmark index, S&P 500 (SPX).
In 2018, General Motors’ stock went down 18.39%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
As part of the investment plan, 15 000 jobs are expected to be maintained at the two facilities, which are located in Sao Jose dos Campos and Sao Caetano do Sul.
“When we embarked on this path last December, we had a really serious problem, which was the future of our factories in Sao Paulo,” Carlos Zarlenga, GM’s Chief Executive Officer for South America, said during a news conference on Tuesday hosted by Sao Paulo State Governor Joao Doria.
GM had previously warned its local employees that it was facing heavy losses and that certain ”sacrifices” would have to be made.
*1 US Dollar equals 3.7694 Brazilian reais
According to CNN Money, the 18 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $47.50, with a high estimate of $67.00 and a low estimate of $33.00. The median estimate represents a 24.12% upside compared to the closing price of $38.27 on March 19th.
The same media also reported that 12 out of 21 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 6 – 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 – $38.33
R1 – $38.77
R2 – $39.48
R3 – $39.92
R4 – $40.37
S1 – $37.62
S2 – $37.18
S3 – $36.47
S4 – $35.77
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