General Motors (NYSE:GM) Shares Gap Up After Strong Earnings

General Motors Company (NYSE:GM) (TSE:GMM.U) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $79.43, but opened at $83.63. General Motors shares last traded at $86.3650, with a volume of 5,096,468 shares changing hands.

The auto manufacturer reported $2.51 earnings per share for the quarter, beating analysts’ consensus estimates of $2.26 by $0.25. General Motors had a net margin of 1.46% and a return on equity of 14.72%. The company had revenue of $45.29 billion for the quarter, compared to analyst estimates of $45.81 billion. During the same period last year, the firm earned $1.92 earnings per share. The firm’s revenue was down 5.1% on a year-over-year basis. General Motors has set its FY 2026 guidance at 9.750-10.500 EPS.

General Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Stockholders of record on Friday, March 6th will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Friday, March 6th. This is a boost from General Motors’s previous quarterly dividend of $0.15. General Motors’s dividend payout ratio (DPR) is presently 12.07%.

General Motors declared that its board has initiated a stock repurchase plan on Tuesday, January 27th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the auto manufacturer to repurchase up to 8.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Key General Motors News

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

• Positive Sentiment: Q4 adjusted EPS beat expectations (reported $2.51 vs. ~ $2.20 consensus), showing core profitability strength. MarketBeat: Q4 results
• Positive Sentiment: Board approved a $6.0 billion share repurchase program and raised the quarterly dividend 20%, boosting capital-return prospects and signaling management confidence. PR Newswire: Buyback & dividend
• Positive Sentiment: Multiple brokerages raised price targets (UBS, RBC, Mizuho), reflecting bullish analyst reactions that may support the stock. The Fly: UBS raise The Fly: RBC raise The Fly: Mizuho raise
• Neutral Sentiment: GM’s software/subscription business is growing (nearly $2B revenue), a longer‑term upside driver but not an immediate offset to near‑term EV headwinds. Business Insider: subscriptions
• Neutral Sentiment: Positive value/long‑term coverage (Zacks, Seeking Alpha) highlights attractive valuation and buybacks as a catalyst for longer‑horizon investors. Zacks: value thesis
• Negative Sentiment: GM took a large EV-related write-down (~$7.2B) that produced a meaningful GAAP loss for the quarter, pressuring near-term headline earnings and investor sentiment. MarketWatch: EV charge
• Negative Sentiment: FY‑2026 EPS guidance (9.75–10.50) came in below consensus (~11.9), a conservative outlook that likely trimmed upside despite the EPS beat. PR Newswire: guidance
• Negative Sentiment: Revenue slightly missed Street expectations and management flagged slower EV adoption and tariff-related costs, which add near‑term operational headwinds. MSN: revenue miss CNBC: tariff costs

Analysts Set New Price Targets

GM has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their price objective on General Motors from $85.00 to $100.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 21st. Morgan Stanley reiterated an “overweight” rating and set a $100.00 target price on shares of General Motors in a research note on Wednesday. Piper Sandler restated an “overweight” rating and set a $105.00 price target (up previously from $98.00) on shares of General Motors in a research report on Wednesday. Wall Street Zen lowered shares of General Motors from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Finally, Benchmark reiterated a “buy” rating on shares of General Motors in a research note on Wednesday, October 22nd. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $85.14.

Insider Buying and Selling

In other General Motors news, CAO Christopher Hatto sold 7,724 shares of the stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $72.00, for a total transaction of $556,128.00. Following the completion of the transaction, the chief accounting officer owned 12,007 shares in the company, valued at $864,504. This trade represents a 39.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On General Motors

Several hedge funds and other institutional investors have recently modified their holdings of GM. CWM LLC increased its stake in shares of General Motors by 50.8% in the 3rd quarter. CWM LLC now owns 340,858 shares of the auto manufacturer’s stock worth $20,782,000 after acquiring an additional 114,756 shares in the last quarter. Corient Private Wealth LLC grew its holdings in General Motors by 6.2% in the second quarter. Corient Private Wealth LLC now owns 341,426 shares of the auto manufacturer’s stock worth $16,802,000 after purchasing an additional 20,017 shares during the period. SteelPeak Wealth LLC purchased a new stake in General Motors in the third quarter worth about $3,411,000. Burney Co. increased its stake in shares of General Motors by 18.7% during the third quarter. Burney Co. now owns 82,037 shares of the auto manufacturer’s stock valued at $5,002,000 after purchasing an additional 12,913 shares in the last quarter. Finally, Permanent Capital Management LP purchased a new position in shares of General Motors during the third quarter valued at approximately $1,102,000. 92.67% of the stock is currently owned by institutional investors.

General Motors Stock Performance

The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.06 and a current ratio of 1.17. The stock has a market capitalization of $79.24 billion, a P/E ratio of 17.09, a PEG ratio of 0.80 and a beta of 1.31. The business has a 50-day moving average price of $79.49 and a 200 day moving average price of $66.50.

About General Motors

General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.