General Motors (NYSE:GM) to Buy Back $20.00 billion in Shares

General Motors (NYSE:GM) (TSE:GMM.U) announced that its board has initiated a stock buyback program on Tuesday, October 20th, RTT News reports. The company plans to buy back $20.00 billion in outstanding shares. This buyback authorization permits the auto manufacturer to repurchase up to 27.5% of its stock through open market purchases. Share buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

General Motors Stock Up 1.4%

Shares of General Motors stock opened at $77.16 on Friday. The business has a 50-day moving average price of $83.59 and a 200 day moving average price of $81.29. General Motors has a fifty-two week low of $66.57 and a fifty-two week high of $91.85. The firm has a market cap of $65.08 billion, a P/E ratio of 5.65, a P/E/G ratio of 0.42 and a beta of 1.40. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.32.

General Motors (NYSE:GM) (TSE:GMM.U) last released its earnings results on Tuesday, October 20th. The auto manufacturer reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.69 by $0.01. The company had revenue of $50.02 billion for the quarter, compared to the consensus estimate of $48.78 billion. General Motors had a return on equity of 19.36% and a net margin of 2.12%. General Motors’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same quarter last year, the business posted $2.80 EPS. On average, sell-side analysts forecast that General Motors will post 13.45 earnings per share for the current fiscal year.

General Motors Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be paid a dividend of $0.18 per share. The ex-dividend date is Friday, December 4th. This represents a $0.72 annualized dividend and a yield of 0.9%. General Motors’s dividend payout ratio (DPR) is 36.36%.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Morgan Stanley cut their price objective on shares of General Motors from $101.00 to $95.00 and set an “overweight” rating on the stock in a report on Wednesday. Benchmark reissued a “buy” rating and issued a $105.00 price objective (up from $90.00) on shares of General Motors in a research report on Tuesday, July 21st. Barclays lowered their target price on General Motors from $110.00 to $105.00 and set an “overweight” rating for the company in a research note on Wednesday. TD Cowen reaffirmed a “buy” rating and set a $132.00 target price on shares of General Motors in a research report on Wednesday. Finally, BNP Paribas Exane boosted their price target on General Motors from $102.00 to $112.00 and gave the stock an “outperform” rating in a research note on Monday, August 31st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, General Motors presently has an average rating of “Moderate Buy” and an average target price of $99.86.

Insider Transactions at General Motors

In other General Motors news, EVP Rory Harvey sold 8,882 shares of the business’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $86.95, for a total transaction of $772,289.90. Following the completion of the sale, the executive vice president owned 28,513 shares in the company, valued at $2,479,205.35. The trade was a 23.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Grant Dixton sold 40,000 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $88.44, for a total transaction of $3,537,600.00. Following the sale, the executive vice president owned 54,992 shares of the company’s stock, valued at approximately $4,863,492.48. The trade was a 42.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 549,665 shares of company stock valued at $49,010,828 over the last quarter. Insiders own 0.44% of the company’s stock.

Key Stories Impacting General Motors

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: GM reported third-quarter revenue of $50.02 billion and adjusted earnings of $3.70 per share, narrowly beating estimates. Net income and adjusted EBIT also increased sharply year over year. GM narrows 2026 EBIT guidance
• Positive Sentiment: The board authorized a record $20 billion share-repurchase program, potentially returning substantial capital to shareholders and signaling management believes the stock is undervalued. GM beat and added a $20 billion buyback
• Positive Sentiment: GM’s “Forward” strategy emphasizes faster vehicle development, AI, centralized computing, improved battery efficiency and paid software services such as OnStar and Super Cruise. These initiatives could lower development costs and create higher-margin recurring revenue. GM aims to develop vehicles with AI
• Neutral Sentiment: GM is adjusting its product mix by bringing back hybrids while continuing to invest in EVs. Executives said electric trucks have underperformed expectations, but the company still views them as strategically important. GM is bringing back hybrids
• Negative Sentiment: GM narrowed its 2026 EPS guidance to $12.75–$13.75, with the midpoint below analyst expectations. Investors are also concerned about $1 billion–$1.5 billion of potential 2027 commodity and logistics costs, tariffs and the company’s reliance on North American trucks and SUVs. GM Q3 earnings call weighs 2027 cost risks
• Negative Sentiment: Reports alleging that OnStar shared driver data without adequate consent introduce potential privacy, regulatory and reputational risks, even as GM promotes OnStar’s new AI capabilities. GM and OnStar data-sharing allegations

About General Motors

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.

GM’s product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.