AE Wealth Management Sells 72.5% of General Motors Stake as Company Approves $6B Buyback
AE Wealth Management cut its GM position by 72.5% in Q3, selling 23,958 shares to hold 9,069 shares worth $553,000. GM beat Q3 EPS estimates with $2.51 on $45.29B revenue, boosted its quarterly dividend to $0.18 and authorized a $6B share buyback.
1. Institutional Investor Reduces GM Position
AE Wealth Management LLC disclosed a 72.5% reduction in its holding of General Motors shares during Q3, selling 23,958 shares and retaining 9,069 shares valued at approximately $553,000. This divestment follows a broader trend of institutional portfolio adjustments: five other firms established new stakes ranging from $25,000 to $33,000, while Armstrong Advisory Group Inc. increased its position by 94.6% to 545 shares. As of the latest filings, institutional investors control 92.67% of GM’s outstanding shares, underscoring the brand’s heavy reliance on large-scale asset managers.
2. Quarterly Earnings and Fiscal 2026 Guidance
In its Q4 results announced January 27, GM reported adjusted EPS of $2.51, surpassing consensus by $0.25, on revenue of $45.29 billion, narrowly below the $45.81 billion estimate. Automotive net margin was 1.46%, with ROE at 14.72%. Year-over-year revenues declined 5.1%, and annualized EPS guidance for FY 2026 is set at 9.75–10.50 per share. Sell-side analysts forecast full-year EPS of 11.44, reflecting confidence in margin recovery driven by EV rollout and cost efficiencies.
3. Dividend Hike and $6 Billion Share Repurchase Program
GM’s board approved a quarterly dividend increase to $0.18 per share, representing a 20% rise from the prior payout and an annualized yield of 0.8%. The dividend is payable March 19 to shareholders of record March 6. Concurrently, the board authorized a $6 billion buyback, enabling repurchases of up to 8.1% of shares outstanding. Management cites the repurchase program as an indication that shares are trading below intrinsic value and as a tool to offset dilution from equity compensation.
4. Analyst Ratings and Consensus Targets
Research houses maintain a generally positive outlook on GM: 2 Strong Buy, 15 Buy, 5 Hold and 2 Sell ratings. The consensus target stands at $88.43. Recent actions include DZ Bank’s upgrade to Buy with a $98 target, Mizuho’s raise to $105, Goldman Sachs’ $104, and Jefferies’ increase to a $97 target. Wall Street Zen remains cautious, downgrading to Hold. The average consensus implies upside of roughly 2% from current levels, reflecting mixed views on EV transition costs and macroeconomic headwinds.