The Chairman & CEO of General Electric Company (NYSE:GE), H. Culp, Just Bought 3.4% More Shares

By
Simply Wall St
Published
May 07, 2022
NYSE:GE
Source: Shutterstock

General Electric Company (NYSE:GE) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, H. Culp, recently bought a whopping US$4.8m worth of stock, at a price of US$74.53. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.4%.

See our latest analysis for General Electric

The Last 12 Months Of Insider Transactions At General Electric

In fact, the recent purchase by H. Culp was the biggest purchase of General Electric shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$78.23. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the General Electric insiders decided to buy shares at close to current prices.

In the last twelve months General Electric insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:GE Insider Trading Volume May 7th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of General Electric

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that General Electric insiders own 0.2% of the company, worth about US$208m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About General Electric Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest General Electric insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of General Electric.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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