General Motors Co (NYSE:GM) announced today that its Board of Directors has greenlit a fresh $6 billion stock repurchase plan.
This new authorization permits the automotive giant to buy back its outstanding common stock.
General Motors stock added more than 1% on the announcement.
"The investments GM made in its brands and product portfolio over the last several years, and the company's operating discipline, are delivering consistently strong revenue growth, margins 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're growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders."
Previously in November 2023, GM had initiated a $10 billion accelerated share repurchase program and reported that it still had about $1.4 billion left under the existing authorization.
During the first quarter of 2024, the company repurchased $0.3 billion of its shares and anticipates using the remaining $1.1 billion by the end of the second quarter.
Moreover, GM has demonstrated its dedication to enhancing shareholder value by increasing its common stock dividend by 33%, raising it from $0.09 to $0.12 per share in the first quarter of 2024.
The buyback plan represents 11% of the company's current market value.