GM stock alert: General Motors approves $6 billion share buyback

General Motors (NYSE:GM) shares received a boost on Tuesday after the auto company announced a $6 billion share buyback program.

General Motors’ board of directors has authorized the repurchase of up to $6 billion worth of GM stock. The company is announcing this new share repurchase program as it expects to complete its previous $10 billion program by the end of June.

It’s worth noting that this share buyback comes as a morale boost for GM investors amid turmoil at the company. This comes as consumer demand for electric vehicles (EVs) begins to decline.

Paul Jacobson, Chief Financial Officer (CFO) of General Motors, said the following about the share buyback:

“The investments GM has made in its brands and product portfolio over the past few years, along with the company’s operational discipline, are driving consistently strong sales growth, margins and free cash flow. We are very focused on the profitability of our ICE business, we are building and improving the profitability of our EV business and we are deploying our capital efficiently. This allows us to continue to return money to our shareholders.”

GM stock movement on Tuesday

News of the GM share buyback is bringing heavy trading in the company’s stock today, with more than 11 million shares trading at the time of this writing. That’s approaching the company’s daily average trading volume of about 14.9 million shares.

GM shares have risen slightly since Tuesday afternoon, after recording larger gains in the morning.

Investors should stay tuned today to learn even more current stock market news!

We have all the hottest stock market events traders need to know about on Tuesday! This includes what’s going on with NVIDIA (NASDAQ:NVDA), Confirm (NASDAQ:AFRM) And Snowflake (NYSE:SNOW) stocks today. You can find all this news at the following links!

More stock market news from Tuesday

At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Article printed by InvestorPlace Media, https://investorplace.com/2024/06/gm-stock-alert-general-motors-authorizes-6-billion-buyback/.

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