Insider Activity Report: General Motors (GM)

Car manufacturing

Alfred Kelly, a director at General Motors (GM), recently bought 12,000 shares. The buy increased his stake by a massive 225%, and came to a total cost of $607,920.

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  • This marks the first insider buy since last July, when the company CFO bought 25,000 shares for just over $1.1 million. Otherwise, company insiders have been slight sellers of shares following the exercise of stock options, including the CEO and general counsel.

    Overall, General Motors insiders own 0.2% of shares.

    The automaker is up 28% over the past year, slightly outperforming the overall market. That’s even after a mixed year operationally. Revenues rose 11%, but higher costs weighed on growth, which essentially stayed flat.

    General Motors still looks like a value play, with shares trading at about 5 times forward earnings, and a low 0.3 times price-to-sales. Concerns of a slow global economy and the cost of financing vehicles right now may continue to weigh on investors and keep the valuation low.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • Action to take: With shares relatively inexpensive and revenues trending higher, shares can likely continue to keep their current uptrend. GM just recently restarted its dividend, offering a 0.9% yield right now.

    For traders, the March $55 calls, last trading for about $0.90, could likely see mid-double-digit returns in the months ahead on a further long-term uptrend in shares.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!