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Insiders rewarded with a US$997k addition on top of their US$5.5m purchase as General Electric Company (NYSE:GE) hits US$96b

General Electric Company (NYSE:GE) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.1%, resulting in a US$2.9b rise in the company's market capitalisation. In other words, the original US$5.5m purchase is now worth US$6.5m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for General Electric

The Last 12 Months Of Insider Transactions At General Electric

In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO H. Culp bought US$4.8m worth of shares at a price of US$75.26 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$88.14. 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 73.54k shares worth US$5.5m. On the other hand they divested 1.44k shares, for US$107k. In total, General Electric insiders bought more than they sold over the last year. 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!

insider-trading-volume
insider-trading-volume

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 Of General Electric

For a common shareholder, it is worth checking how many shares are held by company 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. General Electric insiders own about US$235m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At General Electric Tell Us?

The fact that there have been no General Electric insider transactions recently certainly doesn't bother us. 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. Of course, the future is what matters most. So if you are interested in General Electric, you should check out this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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