General Motors announces new $6b share buyback plan

General Motors (GM) announced a new $6 billion stock repurchase plan on Tuesday after a recent increase in its quarterly dividend, showing confidence in its financial performance. GM’s positive outlook is fuelled by stable prices and continued demand for gasoline-powered vehicles.

In November 2023, GM outlined a $10 billion stock buyback plan following the ratification of a new labour agreement with the United Auto Workers union.

The company completed the first phase of this plan in the first quarter and is on track to reduce its outstanding share count to below one billion. As of the latest closing data, GM’s market capitalisation sits at $54 billion.

In January, GM further demonstrated its commitment to shareholders by raising its quarterly dividend by 33 per cent to 12 cents per share. The announcement of the new buyback plan has been met positively by investors, with GM shares rising one per cent in pre-market trading.

Attribution: Reuters