GM Stock Up After U.S. Monthly Retail Sales Gain 1.2%

GM stock is increasing after the automaker delivered retail sales growth last month, but a decline in total sales.
By Amanda Gomez ,

NEW YORK (TheStreet) -- General Motors (GM) - Get Report stock is rising 1.73% to $28.78 in mid-morning trading on Friday after the company reported a 1.2% increase in U.S. retail sales for June with 209,295 vehicles sold to individual customers. Total sales were down 1.6% to 255,210 vehicles sold.

GMC and Buick total sales declined 8.6% and 5.5%, respectively, which offset 0.1% growth in Chevrolet sales and a 5.5% increase in Cadillac sales.

The automaker's total monthly sales have been declining because the Detroit-based company is reducing the amount of rental cars it sells because they are less profitable. Daily rental sales declined 22% to 5,690 vehicles last month.

"Our reduction in daily rental deliveries, disciplined incentive spending and well-managed inventories are showing real benefit in the residual values of our latest launched vehicles," Kurt McNeil, U.S. VP of Sales Operations, said in a statement.

Additionally, GM's market share increased by 0.1 percentage points last month, according to initial estimates, the company added.

Separately, General Motors has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and impressive record of earnings per share growth.

You can view the full analysis from the report here: GM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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