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 Stock
Currently there is a rather positive sentiment for General Motors Corp with 32 Buy predictions and 5 Sell predictions.
With a target price of 46 € there is a slightly positive potential of 10.26% for General Motors Corp compared to the current price of 41.72 €.
