GM has announced that its Board of Directors has approved a new share buyback program that will repurchase up to $6 billion worth of its outstanding common stock.
This new authorization will allow the Detroit-based company to repurchase shares after the completion of the existing reauthorization. Interestingly, General Motors isn’t the only S&P 500 Index company to announce a buyback program this quarter, as 42 others have followed suit.
“The investments GM made in its brands and product portfolio over the last several years, and the company’s operating discipline, are delivering consistently strong revenue growth, margins, and free cash flow,” GM Executive Vice President and Chief Financial Officer (CFO) Paul Jacobson remarked in a prepared statement. “We are very focused on the profitability of our ICE business; we’re growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders.”
It’s worth noting that General Motors also increased its common stock dividend 33 percent—rising from $0.09 to $0.12 per share—in the first quarter of the 2024 calendar year. Looking forward, General will report Q2 2024 financial results on July 23rd, 2024.
As a reminder, General Motors announced a dividend increase and a $10 billion accelerated share repurchase back in November 2023 while continuing to have approximately $1.4 billion in remaining capacity under its prior share repurchase authorization. During the first quarter of the 2024 calendar year, the Detroit-based automaker repurchased $0.3 billion in shares and expects to exhaust the remaining $1.1 billion of the prior authorization before the end of Q2 2024.
“We’re growing and improving the profitability of our EV business and deploying our capital efficiently,” a GM spokesperson claimed in a prepared statement to Reuters. “This allows us to continue returning cash to shareholders.”
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Comments
When in doubt, artificially prop up the price of your stock to mask your incompetence. Heaven forbid you use that $6 billion to come up with some competitive products like say a new full-size van line, a real SUV Wrangler/Bronco competitor, or a new Camaro. Perhaps if the product line was more competitive, sales would rise and stock prices with it.
You’re not convinced Bright Drop is going to take over the world?
That 6 billion could have been much better spent on developing more competitive and better products.
GM is on the right track. People love to Bash GM ( or Toyota does). I personalty think its car warfare of Toyota sweat shops trying to make GM look bad because they Toyota is 2 in the USA and have not been able to pass GM for long as the number one USA car maker. GM makes the best cars and trucks in the world so people love to hate. Consumer reports is one place I know for sure is a paid advertisement for Foreign companies after researching there ” donations”
The very fact that Toyota is even close to overtaking gm is a disgrace and a testament to their lackluster management starting with Roger Smith. Toyota dominates every segment of the market with the exception of large trucks.
This GM leadership has no clue how to lead
Instead of investing that Six Billion to try and catch up to Tesla and the Chinese automakers they buy stock…..Zero leadership.
Why are so many GM bashers here? Did Toyota pay you? It seems that way!
@GM Owner
It is not GM bashing.
It is simply that Stock Buy backs should not be happening UNLESS you are at a position of complete leadership like say Apple.
And even the Big Bad Apple was caught by surprise how quickly AI is taking off and had to basically agree to give OUR Data to OpenAI to utilize their ChatGTP software…..maybe had they NOT used Billions upon Billions of dollars for stock buybacks and instead kept innovating, they wouldn’t have to make that drastic decision that might actually cost them customers in the future. There will be a percentage of customers that will refuse to allow OpenAI to gather all their info from Apple.
GM should be investing heavily trying to catch up and NOT buying back shares!!!
Personally I do not believe stock buybacks should be allowed but that is an entirely different convo altogether Lol
As a shareholder I personally believe that companies should keep innovating trying to dominate their sector!!!
Executives are primarily compensated with stock options. No insider trading here 😉
It makes total sense for Gm to buy it back its own stock.
Nobody loves it. It’s making money hand over fist and it pays for itself in LESS than 6 yrs. Gm made 11.34 B and earns more than Tesla! How dirt cheap is GM – Musk could buy a Gm with his desired 50 billion bonus.
This is chump change
It makes sense for Gm to buy it back its own stock.
Nobody loves it. It’s making money hand over fist w a PE of 5.8. Gm made 11.34 B last year and earns 25% more than Tesla! H – Musk could buy a Gm with his desired 50 billion bonus.
This is chump change
It makes sense for Gm to buy it back its own stock.
Nobody loves it. It’s making money hand over fist w a PE of 5.8. Gm made 11.34 B last year and earns 25% more than Tesla! H – Musk could buy a Gm with his desired 50 billion bonus.
This is chump change
Did anybody bashing GM on a GM fan site read and understand the article before jumping into negative comments. In a nutshell it says that GM is solid financially and it is on an upswing trend. Both ICE and EV products will continue to be manufactured. Good news all along. Some people just can’t see the forest growing healthy because they focus on a few dead trees.