Why GM's Stock Jumped 11.8% Today
Shares of legacy automaker General Motors (NYSE: GM) came to life on Wednesday after the company announced a very quick $10 billion share repurchase program and updated guidance. The market hasn't loved GM stock and management seems to be taking matters into its own hands, simply buying back a huge percentage of the company.
The highlight number is a $10 billion buyback that GM expects to complete before the end of the year. But the bigger news is a $6.8 billion purchase that will be made by the end of the week. This is one of the most aggressive buyback plans I've ever seen and could buy back about 17% of the company by the end of the week.
On top of the buyback, GM gave guidance for the full year after pulling it during the UAW strike. For 2023, management expects $9.1 billion to $9.7 billion in net income, adjusted automotive free cash flow of $10.5 billion to $11.5 billion, and earnings per share after buybacks of $7.20 to $7.70. These figures are down slightly from before the strike, but indicate that GM will be extremely profitable this year.
Source Fool.com
General Motors Corp Stock
Our community is currently high on General Motors Corp with 37 Buy predictions and 8 Sell predictions.
As a result the target price of 48 € shows a slightly positive potential of 17.36% compared to the current price of 40.9 € for General Motors Corp.
