GM stock value rose sharply today following the announcement of a $10 billion share repurchase program and dividend increase, rising by nearly 12 percent compared to the stock’s closing value recorded yesterday. The announcement was made in a new business update that included insight into the costs of the UAW strike. The stock buyback is expected to be completed around the fourth quarter of the 2024 calendar year.
GM stock value increased to a high of $32.29 per share before falling to $31.60 per share by the end of trading for the day. The high of $32.29 per share is an 11.77-percent increase compared to yesterday’s closing value of 28.89 per share. General Motors stock value dipped below the $30 per share mark for the first time in three years on October 5th, and since then, has struggled to claw back above $30 per share. GM stock value opened at $28.73 per share in November, and hit a new low on November 10th when it dipped to $26.30 per share before rising to close at $26.85 per share by the end of trading for the day.
The new share repurchase program includes an immediate purchase of $6.8 billion worth of common stock, with Bank of America, Goldman Sachs, Citibank, and Barclays carrying out the program. Roughly 1.37 billion shares of common GM stock are outstanding as of the start of the buyback program.
Common stock shares currently pay a 9-cent per share dividend each quarter to shareholders of record. With the recent dividend boost, each share is expected to pay a 12-cent dividend, up three cents.
In a statement following the program announcement, GM CEO Mary Barra said that General Motors “will deliver very strong profits in 2023 thanks to an exceptional portfolio of vehicles that customers love and our operating discipline.”
Highlights from the latest 2023 earnings guidance include a net income of $9.1 to $9.7 billion, diluted earnings per share of $6.52 to $7.02, free cash flow of $10.5 to $11.5 billion, and capital spending of $11.0 to $11.5 billion.
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Comments
Guess that’s one way to get the stock to rise
Mary finally made a move to strengthen GM instead of continuing to weaken it with wasted investments in EV’s and sled driving vehicles.
Self driving vehicles, sorry for the typo.
But we were told that if the Unions gets more money then GM will not be competitive?
HaHa what a joke.