General Motors Co (NYSE:) announced today that its board of directors has greenlighted a new $6 billion share repurchase plan.
This new authorization allows the auto giant to repurchase its outstanding shares of common stock.
General Motors shares rose more than 1% following the announcement.
“GM’s investments in its brands and product portfolio over the past several years, as well as the company’s operating discipline, have delivered consistently strong growth in revenue, earnings and free cash flow,” said Paul Jacobson, GM executive vice president and chief financial officer.
“We are very focused on the profitability of our ICE business, we are growing and improving the profitability of our EV business and utilizing our capital efficiently. This allows us to continue returning cash to shareholders.”
Previously, in November 2023, GM initiated a $10 billion accelerated share repurchase program and said it still had about $1.4 billion remaining under its existing authorization.
The company repurchased $0.3 billion of its shares in the first quarter of 2024 and plans to use the remaining $1.1 billion by the end of the second quarter.
Moreover, GM demonstrated its commitment to increasing shareholder value by increasing its common stock dividend by 33%, raising it from $0.09 per share to $0.12 per share in the first quarter of 2024.
The buyback plan is 11% of the company’s current market value.