General Motors Company (GM) revealed plans earlier this week to invest as much as $700 million and to add 450 new manufacturing jobs in the state of Ohio. At the same time, the company is in negotiations over the sale of its facility in Lorsdtown, Ohio, to electric truck manufacturer Workhorse Group.
The new jobs are to be based at GMs Ohio facilities in Moraine, Toledo and Parma, the US auto maker said.
General Motors shares closed lower for a second consecutive trading session in New York on Thursday. It has also been the steepest daily loss since May 6th. The stock went down 1.65% ($0.63) to $37.58, after touching an intraday low at $37.22, or a price level not seen since March 29th ($36.92).
Shares of General Motors Company have risen 12.35% so far in 2019 compared with a 14.52% gain for the benchmark index, S&P 500 (SPX).
In 2018, General Motors’ stock went down 18.39%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.
“The U.S. economy and our core business are strong, so we can expand our commitment to U.S. manufacturing and Ohio and create job opportunities for our employees,” GMs Chief Executive Mary Barra said in a statement, cited by CNBC. “We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA,” Barra added.
If a sale of GMs Lorsdtown facility is agreed to, the plant is to be run by a newly established affiliate, partially owned by Workhorse.
“This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorses role in the EV community,” Workhorse Chief Executive Officer Duane Hughes was quoted as saying by the same media.
Meanwhile, Workhorse founder Steve Burns said that if a purchase of the facility was agreed on, the company intends to use that plant to manufacture a commercial electric pickup truck.
According to CNN Money, the 20 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 26.40% upside compared to the closing price of $37.58 on May 9th.
The same media also reported that 13 out of 21 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 5 – 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 – $39.09
R1 – $39.98
R2 – $41.15
R3 – $42.04
R4 – $42.92
S1 – $37.92
S2 – $37.03
S3 – $35.86
S4 – $34.68
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