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Key Takeaways
- General Motors on Tuesday announced another stock buyback, the second one in seven months.
- The $6 billion repurchase plan followed the $10 billion one last November, and will begin once the current one runs out of money, which is expected to happen at the end of the month.
- GM said it intends to have a total of $1.4 billion in stock buybacks this year.
General Motors (GM) shares advanced Tuesday after the biggest U.S. automaker announced its second stock buyback in seven months.
GM said its board had approved up to $6 billion in share repurchases, which will kick in after money from the current program is exhausted, which is expected at the end of the month.
In November, GM declared a $10 billion accelerated stock buyback, which was added to the $1.4 billion left from the previous one. For all of 2023, the company bought $11.1 billion of its stock, and has spent $300 million so far this year. GM intends to make a total of $1.4 billion in repurchases in the first half of 2024.
No timetable was given for when the new plan will end.
GM ‘Very Focused’ on Profitability of ICE Vehicles
Chief Financial Officer (CFO) Paul Jacobson explained that GM was “very focused” on the profitability of its internal combustion engine (ICE) vehicles, as well as improving profitability for its money-losing electric vehicle (EV) business. He noted those steps, along with deploying capital efficiently, “allows us to continue returning cash to shareholders.”
The news sent shares of General Motors up 1.1% soon after the opening bell Tuesday to $48.09, their highest level in more than two years.
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