autoevolution
 

GM Stock Climbs the Price Ladder

One year almost to the brink of destruction, another star of the Wall Street trading floor. This is how you can sum up American manufacturer GM, whose initial public offering made a month ago shortly became the largest one in history.

But things didn't stop there, as it would appear. The shares GM is selling are feeling great on Wall Street, reaching on closing yesterday highest closing price since GM emerged from bankruptcy:
$35.32 per share, or 2 percent higher than on Monday.

"GM offers an attractive 12-18 month investment opportunity,"
said Credit Suisse analyst Christopher Ceraso, who, together with other optimistic reviews from analysts, is believed to have helped the value of the GM stock.

What's even more important for GM and its stock exchange adventure is that analysts believe the carmaker will pretty much outperform the rest of the industry over the next year. A $43 per share price is not out of reach, Ceraso believes.

In November, GM sent to the market 478 million common stock shares and 80 million shares of its Series B mandatory convertible junior preferred stock. When it started trading, GM was selling a share in between $32.00 and $33.00.

After underwriters exercised their over-allotment options a few days after the initial public offering, the size of the endeavor reached an impressive $23.1 billion.

"Sixteen months ago, we were pretty much flat on our backs," GM's CEO said a while back, "but we picked ourselves back up and got back in the game. We need to work hard to repay that confidence and trust that has been placed in us."
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories