DEXWireNews

General Motors Surges on Dividend Boost, $10 Billion Buyback

Long
NYSE:GM   General Motors Company
General Motors (NYSE: GM) - shares powered higher Today after the carmaker updated its profit guidance following the United Autoworkers Union strike while unveiling plans to boost its quarterly dividend and buyback $10 billion in stock.

General Motors said the six-week UAW strike, which ended late last month, would clip around $1.1 billion from the group's bottom line, but would ultimately improve free cash flows thanks in part to strike-related shutdowns at various facilities around the country.

GM said it now sees full-year adjusted profits in the region of $11.7 billion to $12.7 billion, down from its prior forecast of $12 billion to $14 billion. Diluted earnings, GM said, would likely come in between $7.20 and $7.70 per share, compared to its prior range of between $7.15 and $8.15 per share.

The carmaker also said it would boost its quarterly dividend by 33%, to 12 cents per share, starting in 2024 while immediately retiring $6.8 billion in GM stock through its new $10 billion buyback.

GM's free cash flow forecast was lifted to between $10.5 billion and $11.5 billion, a $2.5 billion boost from the higher end of it pre-strike forecast.

Price Momentum
GM is trading in the middle of its 52-week range and below its 200-day simple moving average.

What does this mean?
Investors are still evaluating the share price, but the stock still appears to have some downward momentum. This is a Neutral sign for the stock's future value.

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