Top Buys by Top Brass: CEO Immelt's $1M Bet on GE

Jan 28 2014, 11:38am CST | by

A company’s own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by the ”top brass” over the trailing six month period, one of which was a total of $1M by Jeffrey R. Immelt, CEO at General Electric Co (NYSE: GE).

Click here to find out which other top insider buys by the ”top brass” you need to know about »

Immelt bets big on GE:

Purchased Insider Title Shares Price/Share Value
01/27/2014 Jeffrey R. Immelt Chairman and CEO 40,000 $25.04 $1,001,600.00

Immelt’s average cost works out to $25.04/share. Shares of General Electric Co were changing hands at $25.42 at last check, trading up about 1.5% on Tuesday. The chart below shows the one year performance of GE shares, versus its 200 day moving average:

Looking at the chart above, GE’s low point in its 52 week range is $21.11 per share, with $28.09 as the 52 week high point — that compares with a last trade of $25.42.

The current annualized dividend paid by General Electric Co is $0.88/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/19/2013. Below is a long-term dividend history chart for GE, which can be of good help in judging whether the most recent dividend with approx. 3.5% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, GE makes up 11.75% of the Vanguard Industrials ETF (AMEX: VIS) which is trading higher by about 0.6% on the day Tuesday.


Special Offer: Find out what Frank Bifulco is holding in the Dividend OverDrive Portfolio with a free 30 day trial and a 20% off coupon from Forbes

Source: Forbes Business

/>/>
 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

The Winning Numbers in $1.6 Billion Powerball Drawing on Ticket in California
The Winning Numbers in $1.6 Billion Powerball Drawing on Ticket in California
The winning numbers in the record Powerball drawing on Wednesday are drawn.
 
 
Cyber Monday 2015 Takes Over
Cyber Monday 2015 Takes Over
Black Friday 2015 is history. Here come the Cyber Monday 2015 deals.
 
 
Amazon Black Friday 2015 Sale is Live: The Best Deals
Amazon Black Friday 2015 Sale is Live: The Best Deals
The Black Friday 2015 sale on Amazon is an 8 Day event.
 
 
Amazon Black Friday 2015 Deals Unveiled
Amazon Black Friday 2015 Deals Unveiled
The Black Friday 2015 Deals offered in the Amazon Black Friday 2015 Sale are here.