General Motors (NYSE: $GM) Announces $10B Share Buy-back

General Motors (GM) stock increased by 10.7% on Wednesday after the company announced plans to increase shareholder returns. The automaker announced:

1. A $10 billion accelerated share buyback program

2. A 33% increase in its common stock dividend beginning in 2024

3. Reinstatement of its 2023 earnings guidance

4. The dividend will increase to $0.12 per quarter. General Motors expects net income in the range of $9.1 billion to $9.7 billion.

General Motors Outlook
Scaling back on its EV and driverless vehicle ambitions. Navigating higher labor costs due to a new union contract with the United Auto Workers. Finalizing a 2024 budget that will offset the costs of new labor agreements Reducing capital intensity, developing products more efficiently, and reducing fixed and variable costs.

GM is only recently emerging from the six-week strike that cost the company more than $1.1 billion during the third and fourth quarters. GM lost more than 31,000 units of production, more than competitors Ford and Stellantis.

Despite Wednesday's jump, GM stock is down 5.56% year to date.

Technical Analysist
The 10-day chart shows that GM stock has been fluctuating between a low of $26.30 on November 20 and a high of $31.75 on November 30. The stock has experienced some volatility due to various factors, such as the global chip shortage, the electric vehicle competition, and the regulatory and safety challenges of its self-driving subsidiary Cruise.

Price Momentum
General Motors (NASDAQ: GM) is trading in the middle of its 52-week range and below its 200-day simple moving average. Investors are still evaluating the share price, but the stock still appears to have some downward momentum.