Paula Reynolds, a director at General Electric (GE), recently added another 5,000 shares to her stake. That increased her holdings by nearly 20 percent, and came to a total purchase price of just over $62,000.
This marks the first insider buy since last August, when a number of directors and C-suite executives bought shares at a price nearly 50 percent lower than where shares trade today. However, these buys have been dwarfed by sales from a fund that’s also a major holder.
Overall, insiders own just 0.2 percent of shares.
- The ONLY Way to Play Markets Like These
Warren Buffett said, "Price is what you pay... value is what you get."
The best investor in the world knows the only way to prosper (especially in markets like these)... is to invest in VALUE.
But this $2 stock could be the last value play in the market today.
Company executives and non-fund directors have shown good timing for buying the company stock. And this latest buy comes after the company reported great earnings, but also a number of structural changes that led to a small selloff in shares.
With the company’s core operations moving at all cylinders, and with a move towards more consistent profitability, there appears to be sizeable upside ahead for shares.
Action to take: Shares pay a paltry 0.3 percent dividend yield here, so investors may want to play the current uptrend with an options trade.
The June $15 calls, last trading for about $0.72, look like a solid bet on a continued move higher in shares. The options have a good chance of moving in-the-money, and can likely deliver high double to low-triple digit gains.