General Electric Company (NYSE:GE) insiders placed bullish bets worth US$5.6m in the last 12 months
Multiple insiders secured a larger position in General Electric Company (NYSE:GE) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for General Electric
The Last 12 Months Of Insider Transactions At General Electric
The Chairman & CEO H. Culp made the biggest insider purchase in the last 12 months. That single transaction was for US$4.8m worth of shares at a price of US$75.26 each. Even though the purchase was made at a significantly lower price than the recent price (US$85.39), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 74.54k shares worth US$5.6m. On the other hand they divested 1.44k shares, for US$107k. In the last twelve months there was more buying than selling by General Electric insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
General Electric is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. General Electric insiders own 0.2% of the company, currently worth about US$228m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About General Electric Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, General Electric insiders feel good about the company's future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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