Ford Motor on Thursday pegged the cost of a new labor deal at $8.8 billion and joined rival General Motors in cutting its full-year profit forecast due to lost production from a lengthy strike at its U.S. plants.
Their buyback plan was actually kicked off in 2022. They temporarily paused it during the strike and resumed it. There are lots of legitimate reasons they would want to buy back shares - if they are using shares as payment for debt it keeps their interest rate lower.
Regardless, even with the buybacks, their share price is still lower than when the strikes began.
shareholders are laughing all the way to the bank
I shouldn’t have to be the one to tell you this, but the benefits unions fight for, like pensions and health plans, are largely stored on asset markets. Unions are not fighting to destroy the stock market.
Regardless, even with the buybacks, their share price is still lower than when the strikes began.
This is key — GM would want to do a buyback if they think the stock is undervalued, which if they have a plan to deal with the additional costs, it is.
Their buyback plan was actually kicked off in 2022. They temporarily paused it during the strike and resumed it. There are lots of legitimate reasons they would want to buy back shares - if they are using shares as payment for debt it keeps their interest rate lower.
Regardless, even with the buybacks, their share price is still lower than when the strikes began.
I shouldn’t have to be the one to tell you this, but the benefits unions fight for, like pensions and health plans, are largely stored on asset markets. Unions are not fighting to destroy the stock market.
This is key — GM would want to do a buyback if they think the stock is undervalued, which if they have a plan to deal with the additional costs, it is.
Considering they have a PE of 4, it very well probably is. The program is a single year of net income.