GM Finally Puts Shareholders First. Should You Buy the Stock Now?
General Motors (NYSE: GM) stock was surging on Wednesday after the automaker surprised investors with a $10 billion accelerated share repurchase program and raised its dividend by 33% to $0.12 per quarter.
The automaker also reinstated its guidance after pulling it earlier during the United Auto Workers strike. It believes that the strike will cost it $1.1 billion in operating profit, primarily due to lost production. The company's now expects net income of $9.1 billion-$9.7 billion for the year, down from a previous range of $9.3 billion-$10.7 billion. On an adjusted earnings per share (EPS) basis, GM expects $7.20-$7.70 in profits for the year, compared to earlier guidance of $7.15-$8.15.
As part of the accelerated share repurchase program, the company said it would work with its banking partners to immediately repurchase and retire $6.8 billion worth of its stock, and it plans to finish the share repurchase program by the end of next year.
Source Fool.com
General Motors Corp Aktie
Die Community sieht General Motors Corp leicht positiv: Mehr Buy- als Sell-Einschätzungen.
Ein positives Kurspotenzial für General Motors Corp ist gegeben, mit einem Kursziel von 46 € über dem aktuellen Kurs von 41.49 €.
