General Motors (NYSE:GM) Board of Directors Authorizes Stock Repurchase Program

General Motors (NYSE:GM) (TSE:GMM.U) announced that its Board of Directors has approved a stock buyback program on Tuesday, October 20th, RTT News reports. The company plans to buy back $20.00 billion in outstanding shares. This buyback authorization allows the auto manufacturer to repurchase up to 27.5% of its stock through open market purchases. Share buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Jefferies Financial Group upgraded General Motors from a “hold” rating to a “buy” rating and lifted their target price for the stock from $90.00 to $99.00 in a report on Monday, July 27th. Barclays increased their price target on General Motors from $105.00 to $110.00 and gave the stock an “overweight” rating in a report on Wednesday, July 22nd. BNP Paribas Exane raised their price target on General Motors from $102.00 to $112.00 and gave the stock an “outperform” rating in a research report on Monday, August 31st. Tigress Financial raised their price target on General Motors from $92.00 to $130.00 and gave the stock a “strong-buy” rating in a research report on Tuesday, July 28th. Finally, The Goldman Sachs Group lifted their price target on shares of General Motors from $103.00 to $112.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $101.18.

General Motors Stock Down 6.7%

General Motors stock traded down $5.58 during midday trading on Tuesday, reaching $77.17. The stock had a trading volume of 24,647,687 shares, compared to its average volume of 6,847,483. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.97 and a current ratio of 1.14. The firm’s fifty day simple moving average is $83.99 and its 200-day simple moving average is $81.23. The stock has a market capitalization of $67.72 billion, a P/E ratio of 6.58, a price-to-earnings-growth ratio of 0.46 and a beta of 1.40. General Motors has a 1-year low of $62.36 and a 1-year high of $91.85.

General Motors (NYSE:GM) (TSE:GMM.U) last released its earnings results on Tuesday, October 20th. The auto manufacturer reported $3.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.69 by $0.01. The business had revenue of $50.02 billion for the quarter, compared to analyst estimates of $48.78 billion. General Motors had a return on equity of 18.18% and a net margin of 1.05%. General Motors’s revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.80 earnings per share. As a group, analysts expect that General Motors will post 13.53 EPS for the current fiscal year.

General Motors Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Friday, December 4th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, December 4th. General Motors’s dividend payout ratio is presently 36.36%.

Insiders Place Their Bets

In other news, EVP Rory Harvey sold 8,882 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $86.95, for a total value of $772,289.90. Following the completion of the sale, the executive vice president directly owned 28,513 shares of the company’s stock, valued at $2,479,205.35. This trade represents a 23.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Grant Dixton sold 40,000 shares of General Motors stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $88.44, for a total transaction of $3,537,600.00. Following the transaction, the executive vice president directly owned 54,992 shares of the company’s stock, valued at approximately $4,863,492.48. This trade represents a 42.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 549,665 shares of company stock worth $49,010,828 in the last three months. Insiders own 0.44% of the company’s stock.

General Motors News Roundup

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: Q3 results exceeded expectations: GM reported approximately $50.0 billion in revenue and $3.70 in adjusted earnings per share, narrowly beating consensus estimates. Adjusted EBIT rose 22% year over year to $4.1 billion, supported by North American volumes, pickup-truck strength and cost efficiencies. General Motors earnings report
• Positive Sentiment: Large capital-return plan: GM authorized a new, multiyear $20 billion share-repurchase program, signaling management believes the stock is undervalued and potentially supporting per-share earnings. The board also declared a quarterly dividend of $0.18 per share, or $0.72 annualized. GM third-quarter results and buyback announcement
• Positive Sentiment: Improved cash-flow outlook: GM raised its 2026 adjusted automotive free-cash-flow forecast to $11.5 billion-$12.5 billion from $9.5 billion-$11.5 billion, strengthening the case for buybacks and dividends. GM cash-flow outlook
• Neutral Sentiment: GM plans to close its Brownstown battery assembly plant, reportedly because of changes in battery sourcing and production needs rather than a retreat from electrification. The move could reduce costs but highlights ongoing manufacturing adjustments. GM battery plant closure
• Negative Sentiment: Guidance drove the selloff: GM narrowed its full-year adjusted earnings outlook, with the midpoint below Wall Street expectations, and plans to pause some truck production. Investors viewed the weaker outlook as more important than the quarterly beat. Why GM shares declined
• Negative Sentiment: Management said EV demand has fallen back to levels seen before the $7,500 federal tax credit, raising concerns about near-term EV volumes and profitability. Labor and political criticism of the buyback also adds reputational risk. GM EV demand commentary

General Motors Company Profile

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.

GM’s product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.