Board of Directors approves new stock buyback program
Company focuses on profitability and returning cash to shareholders
Company sees better profits from electric vehicle division despite uncertainty and stalling customer demand for new vehicles
General Motors announces new $6 billion share repurchase authorization
GM increases common stock dividend from $0.09 to $0.12 per share in Q1 2024
New authorization allows for opportunistic repurchases after completion of existing reauthorization
General Motors, an automaker known by its ticker symbol NYSE: GM, has recently announced that its Board of Directors has approved a new share repurchase authorization to repurchase up to $6 billion of the company's outstanding common stock. This decision comes as a sign of the company's focus on profitability and returning cash to shareholders. In November 2023, GM increased its common stock dividend from $0.09 to $0.12 per share in Q1 2024.
The new authorization will allow GM to opportunistically repurchase shares after the completion of the existing reauthorization, though a timeframe for completion was not announced. The company's focus on profitability in both its internal combustion engine (ICE) business and electric vehicle (EV) business, as well as deploying capital efficiently, has allowed them to continue returning cash to shareholders.
This announcement comes amid uncertainty surrounding the adoption of all-electric vehicles and stalling customer demand for new vehicles. Despite this, GM has bet heavily on the EV market and is seeing better profits from its electric vehicle division. The company's operating discipline, coupled with investments made in its brands and product portfolio over the last several years, have delivered consistently strong revenue growth, margins, and free cash flow.
GM's new $6 billion share repurchase authorization is a sign of the company's confidence in its ability to generate profits and return value to shareholders. The decision demonstrates GM's commitment to capital efficiency and providing value for its investors, despite challenges faced by the automotive industry as a whole.
