Why Is GENERAL MTRS CO (GM) Stock Down Today?

General Motors stock fell 5.61% to $78.11 on Tuesday. The primary driver was a disappointing full-year profit outlook disclosed alongside third-quarter results, which overshadowed a new $20 billion share buyback authorization.

What Happened

General Motors reported third-quarter operating profit of $4.1 billion, in line with Wall Street expectations. The company also announced a new multi-year buyback program of $20 billion, following the completion of a previous $6 billion program. Despite these measures, the stock sold off because the automaker's forward-looking profit guidance missed estimates. General Motors management stated that the U.S. market remains resilient and the industry backdrop is healthy. The company also indicated it expects to debut hybrid vehicles in multiple segments.

What The Data Shows

The stock opened at $77.74, a 6.1% gap down from the prior close of $82.75. The session low was $76.00 at 8:05 AM ET, while the high reached $79.29 at 7:20 AM ET. Volume stood at 4.7 million shares, which is 0.7 times the three-month daily average. Fundamentals show a market cap of $73.7 billion and a P/E ratio of 41.7. Revenue declined 1.1% on a trailing twelve-month basis, with a net margin of 1.1%. The stock has a beta of 1.40 and a dividend yield of 0.86%. Over the last 8 sessions, the stock had moved up 0.6% before this drop. The 52-week range is $57.55 to $91.85. Unusual options activity included 6 notable prints with $437,000 in call premium versus $255,000 in put premium. Recent insider filings show 5 sales totaling $49.0 million in the last 90 days, with no buys.

What To Watch

Investors will monitor the company's execution on its hybrid vehicle rollout and how the new buyback program impacts free cash flow. The stock's reaction to commodity cost pressures, specifically copper and steel, will also be a key factor in near-term performance.