General Motors Company (NYSE: GM)
General Motors was off to a relatively strong day in the market today. After starting the day off in the green, the stock went on a slow and steady crawl toward the top. However, that slow and steady crawl turned into a mad dash minutes ago, after the company released news. Below, we'll talk about what we're seeing, the news that's causing the move, and what we'll be watching for with regard to GM ahead.
What We're Seeing From GM
As mentioned above, General Motors has been having a great time in the market all day today. At the beginning of the day, the stock was slightly in the green. From there, the stock went on slow movement toward the top. That all changed minutes ago when the slow movement turned into a spike upward. At the moment (1:12), GM is trading at $37.73 per share after a gain of $1.72 per share (4.78%) thus far today.
Why The Stock Is Gaining
As is generally the case, our partners at Trade Ideas were the first to notify us of the upward movement on GM. As soon as we got the alert, the CNA Finance team started digging to see exactly what was causing the movement. It didn't take long to uncover the story in this case. It seems as though news released minutes ago by the company is the cause of the gains.
The news is that the Board of Directors at General Motors has made the decision to authorize a massive addition to its share repurchase plan. According to the announcement, the Board has authorized the addition of $5 billion for the purpose of repurchasing shares. Of course, this shows confidence in further growth at the company, causing excitement among investors.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GM. In particular, we're interested in learning more about the pace at which shares will be repurchased. Also, we'll be watching Trump closely in this case as well. While today's news is good, the battle between Trump and the auto industry could get nasty. Nonetheless, we'll be watching the news closely and bringing it to you as it breaks!
Update - GM has also increased 2017 EPS guidance, which is now in the range of $6.00 to $6.50. This is great news with consensus estimates at $5.73 per share.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Flickr]