General Motors Company (GM) Invests $500M in Lyft, Teams With Them For Autonomous Vehicles


General Motors Company (NYSE:GM) has just invested a sum of $500 million into the ride-sharing company Lyft as a part of the company’s $1 billion fund raise. In addition to this, General Motors Company (NYSE:GM) has also announced an alliance with Lyft for research and development of an on-demand autonomous vehicle platform, which is basically a system that would allow users to direct an autonomous car to pick them up when a ride is required. After this recent funding, Lyft is valued at $5.5 billion.

“We had a really common view of the future” with Lyft, said GM President Dan Ammann in an interview with Reuters. Ammann will join Lyft’s board as part of the deal.

General Motors Company (NYSE:GM) is the latest company to further venture into the autonomous vehicle space. Fellow rival, Ford, has reportedly partnered with Google at the end of 2015 in order to produce self-driving vehicles themselves. The stock increased 0.06% or $0.02 on January 4, hitting $34.03. About 91,165 shares traded hands. GM has declined 5.45% since May 29, 2015 and is downtrending. It has underperformed the S&P500 by 2.44%.

From a total of 10 analysts covering General Motors Company (NYSE:GM) stock, 5 rate it a “Buy”, 1 a “Sell”, and 4 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $57 while the lowest target price is $33. The mean of all analyst targets is $41.68 which is 22.48% above today’s ($34.03) stock price. General Motors Company was the topic of 21 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on October 22 with a “Buy” rating. Vetr upgraded shares to a”Hold” rating and a $34.50 target share price in their report from an August 11. Deutsche Bank maintained GM stock in a recent report from October 14 with a “Hold” rating. Credit Suisse upgraded the rating on July 24. Credit Suisse has a “Neutral” rating and a $33 price target on shares. Finally, Citigroup maintained the stock with a “Buy” rating in a report they issued on a September 2.

The institutional sentiment increased to 1.3 in Q2 2015. It’s up 0.15, from 1.15 in 2015Q2. The ratio is positive, as 112 funds sold all their General Motors Company shares they owned while 240 reduced their positions. 93 funds bought stakes while 365 increased their total positions. Institutions now own 1.16 billion shares which is 1.23% less than the previous share count of 1.18 billion in 2015Q2.

Oldfield Partners Llp holds 16.36% of its total portfolio in General Motors Company, equating to 7.59 million shares. Moon Capital Management Lp owns 881,087 shares representing 15.54% of their total US portfolio. Moreover, Appaloosa Management Lp has 13.51% of their total portfolio invested in the company, equating to 12.89 million shares. The New York-based Litespeed Management L.L.C. has a total of 11.29% of their portfolio invested in the stock. Peconic Partners Llc, a New York-based fund reported 2.08 million shares owned.

General Motors Company designs, manufactures and sells cars, trucks and automobile parts across the world. The company has a market cap of $52.93 billion. The Firm also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). It has 12.45 P/E ratio. The Company’s four automotive divisions include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).