General Motors Company GM is up sharply in premarket trading following an announcement this morning of a new capital plan. The move was a response to fights from activist investor Harry Wilson, who previously launched a proxy fight for a board seat. As a result of the $5 billion share buyback plan, Wilson will back down.
In their "comprehensive capital allocation framework," GM said that it is targeting a cash balance of $20 billion and will return all available free cash flow to shareholders, beginning with the $5 billion in share repurchases. The company will also target 20 percent return on its capex.
The company will hold a conference call at 8:30 a.m. ET to discuss the plan. The stock recently traded at $37.70, up 2.3 percent, in the premarket.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in