GM CFO Buys $1M Worth Of General Motors Stock5
For the second time since joining The General in December 2020, GM Chief Financial Officer (CFO) Paul Jacobson has bought General Motors stock.
According to a report from Detroit Free Press, Jacobson spent more than $1 million of his own money to purchase 31,000 shares at $32.60 a share. Taking place on May 19th, 2023, the GM CFO now owns 186,847 shares of the Detroit-based automaker, currently valued around the $6 million mark.
“I’m sure he finds the stock quite undervalued and he believes in GM’s EV transformation,” Morningstar auto analyst David Whiston was quoted as saying. “It’s been odd to see Ford’s cap higher than GM’s recently when GM’s margins are far higher, so he probably wants to do what he can to boost the share price.”
For context, the market cap that Whiston is referring to is the total value of a company’s outstanding shares. As such, Ford’s market cap was $46.89 billion on May 23rd, 2023, while GM’s market cap stood at $46.32 billion.
According to one GM spokesperson, this purchase of stock is a sign of Jacobson’s confidence of GM achieving an all-EV transition by 2035.
“Paul’s stock purchases reflect his confidence in our ability to deliver both today and into the future as we grow our EV portfolio, and scale Cruise and other growth opportunities,” GM spokesperson Jim Cain was quoted as saying.
Of course, General Motors released a teaser of the upcoming Cadillac Escalade IQ earlier this week, with further electric vehicle offerings – which include the Chevy Silverado EV, Chevy Equinox EV and Chevy Blazer EV – all expected to launch soon.
For comparison, GM CEO Mary Barra has only bought $26,000 worth of GM stock. This illustrates just how unusual a financial move like this is for an officer, as large corporations like General Motors typically award their executives with free stock.
As reference, GM’s stock price was in the $32 per share range from May 15th to May 19th.
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Big gamble, good luck
Indeed, a big bet. But presumably an informed bet.
Today, GM stock is trading less than it was in 2010 at it’s IPO creation. This was from the reorganized GM LLC.
With the poor performance of the ‘new’ GM stock since 2010, it does not appear this is a wise move.
They need to clean house from Mary on down.
I would have waited a few more months for the recession to really bite then buy in.
Gm , t, vz, mmm all are poor investments. Doesnt matter what. Their profits are. I could see maybe 1 or 2 bad years but these stocks are terrible long term investments