General Motors Company (GM) said earlier this week it had acquired a 25% stake in Pure Watercraft, while valuing the electric boat startup company at $600 million.
The US auto maker is offering $150 million in a combination of cash and payment-in-kind, which includes access to GM’s components and assistance with manufacturing, in exchange for the stake, it said.
“Building upon GM’s existing efforts to deploy our technology across rail, truck and aerospace industries, the combined expertise of these two enterprises should result in future zero-emissions marine product offerings,” Dan Nicholson, vice president of GM’s Global Electrification unit, was quoted as saying by Reuters.
General Motors shares closed lower for the fifth time in the past ten trading sessions in New York on Tuesday. The stock went down 1.58% ($1.01) to $63.05, after touching an intraday low at $62.26 and an intraday high at $64.04 respectively.
Shares of General Motors Company have risen 51.42% so far in 2021 compared with a 24.88% gain for the benchmark index, S&P 500 (SPX).
In 2020, General Motors’ stock went up 13.77%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 12 out of 13 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $74.00.