TLDR
- GM stock rose more than 1% in after-hours trading after reports of talks to supply weapons parts to Lockheed Martin
- The Wall Street Journal reported GM could manufacture common parts to boost Lockheed’s munitions output
- GM Defense was established about a decade ago and currently makes infantry vehicles for the U.S. military
- CEO Mary Barra has held discussions with the Trump administration about expanding GM’s military role
- Analysts hold a Moderate Buy consensus on GM with an average price target of $95.65, implying ~16% upside
General Motors stock climbed more than 1% in after-hours trading Monday after the Wall Street Journal reported the automaker is in talks to supply weapons components to Lockheed Martin. GM opened at $83.96 on Tuesday, against a 12-month range of $47.63 to $87.62.
The details of the discussions are still private. Neither GM nor Lockheed Martin has disclosed which specific components are involved.
The backdrop here matters. Months of conflict with Iran have drained U.S. stockpiles of missiles and other weapons. Strike weapons and interceptors are in particularly short supply, putting pressure on the entire defense supply chain.
The White House and Pentagon are actively pushing defense contractors to scale up production and are looking for new manufacturing partners to help fill gaps. The Pentagon’s $1.5 trillion budget request puts heavy emphasis on munitions and drone production.
GM’s Defense Push
GM set up its GM Defense unit about a decade ago to diversify beyond traditional auto manufacturing. The unit currently focuses on infantry vehicles for the U.S. military. CEO Mary Barra has reportedly held conversations with the Trump administration about growing that role.
Washington is specifically looking for nontraditional suppliers — companies outside the usual defense circle — to support major producers and strengthen domestic output. That’s opened the door for automakers.
GM isn’t alone. Volkswagen is reportedly in talks to make components for Israel’s Iron Dome system in Germany. Mercedes-Benz is exploring Europe’s defense sector. Ford is in discussions about supplying vehicles to the U.S. military.
Analyst Sentiment and Institutional Activity
On the institutional side, the picture is mixed. Fieldview Capital Management cut its GM position by 77% in Q4, selling 21,752 shares and leaving just 6,485 worth roughly $527,000.
But others moved in the opposite direction. Cibc World Market increased its GM position by 57.2%, M&T Bank Corp raised its stake by 82%, and Leonteq Securities AG opened a new position worth approximately $17.75 million. Institutional investors collectively own 92.67% of GM stock.
On the analyst side, the consensus sits at Moderate Buy. That’s based on 17 Buy ratings, four Holds, and one Sell. The average price target of $95.65 implies around 16% upside from current levels.
Deutsche Bank upgraded GM from Hold to Buy in April, lifting its target to $90. Wedbush reiterated an Outperform rating with a $95 target in May. Bank of America carries a $105 target with a Buy rating.
GM’s most recent earnings report, released April 28, came in well above expectations. The company posted $3.70 EPS versus the $2.61 estimate and revenue of $43.62 billion against a $43.51 billion forecast. GM reaffirmed its FY2026 EPS guidance of $10.62 to $12.62.
GM also declared a quarterly dividend of $0.18 per share, paid June 18, with an annualized yield of 0.9%.
Year-to-date, GM stock has gained nearly 4%.
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