General Motors (NYSE:GM) Shares Gap Up After Better-Than-Expected Earnings

General Motors Company (NYSE:GM) (TSE:GMM.U) shares gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. 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 trading hands.

The auto manufacturer reported $2.51 earnings per share for the quarter, topping analysts’ consensus estimates of $2.26 by $0.25. The business had revenue of $45.29 billion for the quarter, compared to the consensus estimate of $45.81 billion. General Motors had a net margin of 1.62% and a return on equity of 12.29%. General Motors’s revenue for the quarter was down 5.1% compared to the same quarter last year. During the same period in the prior year, the business posted $1.92 earnings per share. General Motors has set its FY 2026 guidance at 9.750-10.500 EPS.

General Motors Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Stockholders of record on Friday, March 6th will be issued a dividend of $0.18 per share. The ex-dividend date is Friday, March 6th. This represents a $0.72 annualized dividend and a dividend yield of 0.8%. This is a positive change from General Motors’s previous quarterly dividend of $0.15. General Motors’s dividend payout ratio is presently 12.07%.

General Motors announced that its Board of Directors has approved a stock buyback plan on Tuesday, January 27th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the auto manufacturer to buy up to 8.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Key General Motors News

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

• Positive Sentiment: Adjusted Q4 earnings beat expectations ($2.51 vs. ~$2.20 consensus), driven by stronger demand for SUVs and pickup trucks — supports near-term profitability narrative. Reuters: GM core profit rises
• Positive Sentiment: Board raised the quarterly dividend 20% to $0.18 and approved a $6.0 billion share repurchase program — direct positives for EPS support and shareholder return. PR Newswire: GM releases 2025 results
• Positive Sentiment: Market reaction to the beat and capital return moves pushed the stock toward record highs as traders priced in near-term cash-generation strength. Schaeffer’s: Stock surges
• Neutral Sentiment: GM Financial reported mixed results with higher full-year net income but some quarter-to-quarter variability and an impairment — adds complexity but limited direct market-moving surprise. BusinessWire: GM Financial results
• Neutral Sentiment: Operational steps to improve EV ownership experience (myBrand apps integration with Electrify America) are incremental positives for EV retention but not a major near-term revenue driver. PR Newswire: Electrify America integration
• Negative Sentiment: GM recorded a large one-time EV-related charge (~$7.2B) that produced a Q4 GAAP net loss and underscores risks around the company’s EV strategy and demand assumptions. MarketWatch: $7.2B EV charge
• Negative Sentiment: FY2026 EPS guidance (9.75–10.50) came in below Street consensus (~11.9), signaling cautious outlook and limiting upside for multiple-quarter estimates. PR Newswire: 2026 guidance
• Negative Sentiment: Revenue was down ~5.1% YoY and management flagged tariff exposure ($3–4B) and slower EV adoption — pressure on margins and growth assumptions. WSJ: EVs weighed on bottom line
• Negative Sentiment: Labor payouts: UAW hourly workers will receive profit-sharing checks (one-time ~$10,500) while salaried global bonuses are reduced — mixed implications (near-term cash outlay vs. cost discipline). MLive: Workers getting profit-sharing

Wall Street Analyst Weigh In

Several research firms have commented on GM. Weiss Ratings reissued a “hold (c)” rating on shares of General Motors in a research report on Thursday, January 22nd. Morgan Stanley upgraded shares of General Motors from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $54.00 to $90.00 in a report on Monday, December 8th. Citigroup raised their target price on General Motors from $86.00 to $98.00 and gave the company a “buy” rating in a report on Monday, January 12th. Mizuho set a $100.00 price target on General Motors in a research note on Friday, January 9th. Finally, HSBC raised their price objective on General Motors from $48.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday, January 13th. Three analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, General Motors presently has an average rating of “Moderate Buy” and a consensus price target of $80.27.

Insider Activity at General Motors

In related 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 value of $556,128.00. Following the completion of the sale, the chief accounting officer owned 12,007 shares in the company, valued at approximately $864,504. This trade represents a 39.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.54% of the company’s stock.

Institutional Trading of General Motors

Institutional investors and hedge funds have recently modified their holdings of the company. Elevation Wealth Partners LLC raised its stake in shares of General Motors by 500.0% in the 4th quarter. Elevation Wealth Partners LLC now owns 330 shares of the auto manufacturer’s stock valued at $27,000 after buying an additional 275 shares in the last quarter. Founders Capital Management acquired a new stake in General Motors during the fourth quarter valued at approximately $31,000. Steigerwald Gordon & Koch Inc. bought a new stake in shares of General Motors in the 3rd quarter valued at approximately $29,000. Kelleher Financial Advisors acquired a new position in General Motors during the third quarter worth $29,000. Finally, Trust Co. of Toledo NA OH acquired a new stake in shares of General Motors during the second quarter worth approximately $25,000. 92.67% of the stock is currently owned by institutional investors.

General Motors Trading Up 8.8%

The company has a 50-day simple moving average of $79.17 and a 200-day simple moving average of $66.37. The stock has a market cap of $80.59 billion, a P/E ratio of 17.38, a P/E/G ratio of 0.75 and a beta of 1.31. The company has a debt-to-equity ratio of 1.40, a quick ratio of 1.06 and a current ratio of 1.23.

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.