General Motors (GM)
After slipping to less than $27, General Motors (GM) is showing signs of life. All after initiating a $10 billion stock buyback, increasing its dividend, and reinstating guidance for 2023.
As noted by CNBC, “The automaker plans to increase its quarterly dividend next year by 33% to 12 cents per share; initiate an accelerated $10 billion share repurchase; and reinstate its 2023 guidance to include an estimated $1.1 billion in EBITDA.”
And, as noted by GM Chair and CEO Mary Barra:
“GM will deliver very strong profits in 2023 thanks to an exceptional portfolio of vehicles that customers love and our operating discipline. We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs,” she added. “With this clear path forward, and our strong balance sheet, we will return significant capital to shareholders.”
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies