Stock Buyback Program Approved by General Motors (NYSE:GM) Board

General Motors (NYSE:GM) (TSE:GMM.U) announced that its Board of Directors has approved a stock repurchase plan 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 buy up to 27.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

General Motors Stock Down 6.7%

GM traded down $5.58 during midday trading on Tuesday, hitting $77.17. The company had a trading volume of 24,647,687 shares, compared to its average volume of 6,847,483. The stock’s 50 day moving average price is $83.99 and its 200 day moving average price is $81.23. General Motors has a 52 week low of $62.36 and a 52 week high of $91.85. The company has a market capitalization of $67.72 billion, a price-to-earnings ratio of 6.58, a PEG ratio of 0.46 and a beta of 1.40. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 1.42.

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

General Motors Announces Dividend

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

Analyst Upgrades and Downgrades

Several research firms recently commented on GM. Jefferies Financial Group raised General Motors from a “hold” rating to a “buy” rating and raised their target price for the stock from $90.00 to $99.00 in a research note on Monday, July 27th. Wells Fargo & Company boosted their price target on General Motors from $60.00 to $61.00 and gave the company an “underweight” rating in a research note on Wednesday, July 22nd. Barclays boosted their price target on General Motors from $105.00 to $110.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Weiss Ratings restated a “hold (c)” rating on shares of General Motors in a report on Thursday, October 15th. Finally, Morgan Stanley raised their price objective on shares of General Motors from $100.00 to $101.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, General Motors presently has a consensus rating of “Moderate Buy” and an average target price of $101.18.

More General Motors News

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

Insider Buying and Selling at General Motors

In other General Motors news, EVP Grant Dixton sold 40,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $88.44, for a total value of $3,537,600.00. Following the transaction, the executive vice president owned 54,992 shares in the company, valued at approximately $4,863,492.48. This represents a 42.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mary Barra sold 318,448 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $90.38, for a total value of $28,781,330.24. Following the completion of the transaction, the chief executive officer owned 428,994 shares in the company, valued at approximately $38,772,477.72. The trade was a 42.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 549,665 shares of company stock worth $49,010,828 in the last quarter. Company insiders own 0.44% of the company’s stock.

About General Motors

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.