General Electric (GE) generalni direktor akumulira više zaliha

Shares in beaten-down industrial konglomerat General Electric Company (GE) climbed 2.79% on Tuesday, May 3, after a Komisija za hartije od vrednosti i berzu (SEC) filing revealed that Chairman and CEO Larry Culp purchased additional shares in the company. 

Culp accumulated another 65,000 shares in the company—worth slightly over $5 million as of Tuesday’s close—taking his direct ownership to 211,210 units, according to the filing. A GE proxy izjava cited by Barronova shows that Culp has 2.2 million shares in all “stock-based holdings.” 

Discounted Buying Opportunity?

Insider purchases typically indicate a level of confidence in a company that outside investors may not necessarily see. Those who have stock in GE are very much hoping this to be the case, given the company’s shares are trading around 34% below their Najviša 52 sedmice of $116 set in November last year. Since the start of 2022, GE shares have declined by 17.79%, underperforming the blue-chip proxy Dow Jones industrijski prosjek (DJIA) za gotovo 9%.

Given GE stock is down over 80% from its sve vreme visoko, Culp may have seen the discounted price as an opportunity to acquire more shares ahead of a major company restrukturiranje planned over the next several years.

Culp’s Company Reset

The GE board appointed Culp in 2018 to turn the industrial conglomerate’s fortunes around after years of declining earnings and dwindling shareholder returns bought about by a slowdown in U.S. industrijska proizvodnja, u globalna finansijska kriza, and more recently, the COVID-19 pandemic. In his first four years at the helm, Culp’s main priorities have been reducing the company’s Dug and improving operativne efikasnosti across GE’s divisions.

GE to Spin Off Businesses

Culp announced in November last year that GE would be splitting its core businesses into three independent javna preduzeća. One will focus on healthcare, another will target energy, and the third will be devoted to avijacija—currently the conglomerate’s most profitable division. GE plans to odvojiti its healthcare unit by early 2023, followed by its energy arm a year later.

“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” Culp said at the time of the announcement.

Investors will hope Culp’s ambitious restructuring plans for the company restore its mantle as an American icon for innovation and industry transformation.

Disclosure: The author held no positions in the aforementioned securities at the time of publication.