GM stock closes higher near IPO price after April sales report

Market Close Update: Even before the April sales report, General Motors (NYSE: GM) stock gapped higher on the open. While the stock intraday found support at 32.82, it managed to trade even higher, closing near its original IPO offering price of $33.

The weekly chart shows a clear macro view of GM stock's price dynamics since its IPO. Market Close Update: Per the latest quote via TD Amertirade, GM stock closed Tuesday at 32.99, a penny away from its IPO price of $33.

According to breaking news on CNBC this morning, General Motors (NYSE: GM) surprised and beat the street on sales expectations with an increase of 21 percent.

GM stock actually jumped out of the gate before the report by opening higher at 32.41, likely the result of expectations in pre-market trading.

For the record, GM stock made a post-IPO low of 29.17 just a few weeks ago. Since that time, it has rallied back to test its initial offering price of 33 set in November, 2010 when the stock came back to trading publicly.

Sale Report Details

General Motors dealers in the United States reported 232,538 total sales in April, a 27-percent increase versus April a year ago. Solid gains by GM’s lineup of fuel-efficient passenger cars and crossovers powered the gains, led by the best sales month for the Chevrolet Cruze and record sales for the Chevrolet Equinox and GMC Terrain compact crossovers.

Retail sales, those to individual customers, rose 25 percent versus last April with cars and crossovers up 49 percent and 28 percent, respectively. Retail sales for the Cruze were 180 percent higher than the Chevrolet Cobalt it replaced. The Equinox and Terrain also posted retail sales records, up 53 and 61 percent respectively.

With gasoline averaging almost $4 per gallon, consumers are beginning to trade in larger vehicles for smaller, more fuel efficient ones.

“Recently, rising fuel prices have led many to re-think their vehicle choice,” said Don Johnson, vice president, U.S. Sales Operations. “Because of the investments we’ve made in fuel-efficiency and global product architectures, the company is well positioned to meet these needs.”

During the first quarter of 2011, the company’s retail share of the small, compact and compact crossover segments improved by an estimated 3.4 full share points, compared to the first quarter of 2010. Much of this improvement is due to improved availability of the popular Equinox and Terrain and the launch of the all-new Cruze.

Compared to March, retail sales rose 4 percent though incentive spending decreased more than 10 percent, Johnson said.

April deliveries to commercial accounts rose 21 percent – the 13th consecutive month of commercial sales gains.

For more information, read the report directly from media.gm.com

---------------------------------------------------------------------------

Disclosure: Frank Sherosky, creator of the chart and author of "Awaken Your Speculator Mind" does not hold any stock, optionor futures position in this equity or futures at this time.

---------------------------------------------------------------------------
About the Author: After 39 years in the auto industry as a design engineer, Frank Sherosky now trades stocks and writes articles, books and ebooks via authorfrank.com, but may be contacted here by email: [email protected]

________________________________________________
Additional Reading:
50 mpg needed as gasoline futures nears old 3.63 high
eAssist technology extends Malibu ECO driving range to 550 miles
Buick LaCrosse with eAssist on par with highway fuel economy of compacts
Scuderi says 50-plus mpg achievable with turbocharged split-cycle air-hybrid engine
GM ranks above in clean-energy patents
EPA sets milestone for alternate fuel industry with regulation amendments
Scuderi Air-Hybrid Engine technology setting up to challenge electric hybrids
Stop-start technology to advance more micro hybrids by 2016
Four alternate engine technologies for 2011 and beyond

Share this content.


Sign-up to our email newsletter for daily perspectives on car design, trends, events and news, not found elsewhere.