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S&P 500 General Electric Reports Notable Insider Buys

January 26, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Over the past week there were several insiders making buys into the company General Electric.  GE is a AA+/A1 rated company on the S&P 500 and Moody’s respectively, and it maintains a stable outlook with both agencies.  There were two directors making three buys last week as the price fell slightly from its record highs.

Director William Beattie made two buys, adding 4,000 shares to his stock over the past week.  Beattie made his first buy on Jan. 21, when he added 2,000 shares to his stake at $26.23 per share.  This cost the director a total of $52,460, and since this buy the price per share has dropped approximately -4.73%.  His second buy came on Jan. 24, when the director purchased an additional 2,000 shares for $25.47 per share.  This cost him $50,940, and since this buy the price per share has dropped a smaller -1.88%  As of his most recent buy, Beattie holds on to 47,193 shares of GE stock.

The other director making buys this week was James Rohr who added 10,000 shares to his stake.  The director added these shares at an average price of $26.18 per share, costing him a total of $261,800.  Since his buy the price per share has dropped approximately -4.55%.  Since his buy the price per share has dropped -4.55%.

These buys represent the largest amount of insider buys for the company over the past three years. 

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GE is a diversified infrastructure and financial services company. The company provides products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products.

General Electric’s historical revenue and net income:

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The company announced that they had launched 14 new industrial internet productivity technologies which will improve the outcomes for aviation, oil & gas, transportation, healthcare and energy.

Along with the insider buys General Electric also reported on Jan. 21, that it had agreed to acquire API Healthcare.  API Healthcare is a healthcare workforce management software and analytics solutions provider headquartered in Wisconsin.  This acquisition aligns directly with GE’s industrial internet strategy to invest in “strong, innovative businesses that enhance GE’s portfolio in software, data and analytics.”  The acquisition is expected to close during the first quarter of 2014. 

Although the company is taking great strides to invest in companies and solutions to further its growth strategies, the company announced that it would be paying quite the hefty fine over a flawed design a couple days ago.  One of the subsidiaries of GE, Hitachi, agreed to pay $2.7 million to resolve a flawed nuke design to the U.S. Department of Energy and Nuclear Regulatory Commission, according to ABC News.

The Peter Lynch Chart suggests that the company is currently overvalued:

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General Electric has a market cap of $252.43 billion. Its shares are currently trading at around $24.95 with a P/E ratio of 118.70, a P/S ratio of 1.78 and a P/B ratio of 2.06. The company had an annual average earnings growth of 7.30% over the past ten years.

  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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