The officers and directors of a company tend to have a unique inside view into the business, so when you see insider buying their own stock, you should take notice. Presumably the only reason for a company insider to choose to take their hard-earned cash and use it to buy stock 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.
Within the 30 components of the Dow Jones Industrial Average, only eight companies have experienced such buying over the trailing six-month period — one of which was General Electric (GE), where an investment totaling $3.6M invested across 2 purchases was made by CEO Jeffrey R. Immelt.
Immelt Bets Big
|01/27/2014||Jeffrey R. Immelt||Chairman and CEO||40,000||$25.04||$1,001,600.00|
|03/03/2014||Jeffrey R. Immelt||Chairman and CEO||104,900||$25.19||$2,642,431.00|
Immelt’s average cost works out to $25.15/share. GE shares were changing hands at $26.78 at last check, trading off about 0.2% 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 $22.76 per share, with $28.09 as the 52-week high point.
The current annualized dividend paid by General Electric is $0.88/share, currently paid in quarterly installments, and its most recent dividend ex-date was on Feb. 20. Below is a long-term dividend history chart for GE, which can be of good help in judging whether the most recent dividend with approximately 3.3% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, GE makes up 10.9% of the Vanguard Industrials ETF (VIS), which is trading higher by about 0.1% on the day Tuesday.