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GM CEO Barra sells over $29 million in company stock

Published 06/12/2024, 06:10 PM
© Reuters

General Motors Co (NYSE:GM) CEO Mary T. Barra has sold a significant portion of her company stock, according to the latest filings. The transactions, which took place on June 10th and 11th, involved the sale of 300,000 shares at $47.00 each, and another 326,305 shares at prices ranging from $48.00 to $48.94, for a total of approximately $29.87 million.

The sales were executed at weighted average prices, with the second transaction's average coming to $48.33 per share. This sale reduced Barra's direct holdings to 898,648 shares following the transactions.

In addition to the sales, Barra acquired 326,305 shares through the exercise of stock options on June 11th, at a set price of $34.34 per share, totaling around $11.21 million. These options were originally granted in June 2017 and vested over a period of three years.

The transactions come at a time when General Motors continues to navigate through a rapidly evolving automotive industry, with significant investments in electric vehicles and autonomous driving technologies. The company's stock performance and Barra's transactions are closely watched by investors as indicators of executive confidence in the company's future prospects.

Investors and the market at large often look to such filings for insights into executive sentiment and strategy, although the reasons behind such transactions can vary widely and may not necessarily reflect a change in outlook for the company.

General Motors has not made any official comment on the transactions, and the filing indicates that Barra remains significantly invested in the company with a substantial number of shares still under her ownership.

In other recent news, General Motors (GM) announced a new $6 billion share repurchase program, following a $10 billion accelerated share repurchase initiated in November 2023. In addition, the company revealed plans to invest $850 million into its autonomous vehicle subsidiary, Cruise. Analysts from BofA Securities, Citi, and RBC Capital Markets maintained their positive ratings on GM, reflecting the company's robust revenue growth and solid margins.

GM's CFO, Paul Jacobson, provided updates indicating that the second-quarter earnings are expected to surpass those of the first quarter. He also touched upon GM's electric vehicle production forecast for 2024, expecting to produce between 200,000 to 250,000 EVs. On the regulatory front, the National Highway Traffic Safety Administration (NHTSA) revised fuel economy standards, leading to significantly reduced penalties for automakers, including GM.

GM Defense, a subsidiary of GM, partnered with Mistral Inc. to integrate advanced loitering munition technology into its light tactical utility vehicle. These recent developments underscore GM's commitment to innovation and delivering shareholder value in the evolving automotive landscape.

InvestingPro Insights

General Motors (NYSE:GM) has been making headlines with CEO Mary T. Barra's recent stock sale, and investors are keenly observing the company's financial health and market performance. Here are some key insights from InvestingPro that shed light on the current state of GM:

InvestingPro Data shows that GM holds a robust market capitalization of $55.73 billion. Despite recent market volatility, the company has maintained an attractive P/E ratio, currently standing at 6. This figure even more favorably adjusts to 5.14 when considering the last twelve months as of Q1 2024, highlighting GM's potential undervaluation relative to its earnings. Additionally, GM's Price to Book (P/B) ratio during the same period is 0.83, which may suggest that the stock is potentially undervalued based on its assets.

InvestingPro Tips reveal that GM is not just a prominent player in the Automobiles industry but has also been experiencing a strong return over the last three months, with a 24.94% price total return. Moreover, analysts are optimistic about GM's profitability, predicting the company will remain profitable this year, a sentiment bolstered by the fact that GM has been profitable over the last twelve months.

For investors looking to delve deeper into GM's prospects and gain more insights, InvestingPro offers a wealth of additional tips. There are currently 9 more InvestingPro Tips available, which can be accessed through https://www.investing.com/pro/GM. These can provide valuable guidance for those considering GM as part of their investment portfolio.

To enhance your investment analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With this subscription, you'll gain access to an array of professional tools and data to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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