Bullish General Electric Company (NYSE:GE) insiders were rewarded last week as their US$5.5m investment inflated to US$6.0m

Insiders who bought General Electric Company (NYSE:GE) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$4.5b as a result of the stock's 5.3% gain over the same period. In other words, the original US$5.5m purchase is now worth US$6.0m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out 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. That implies that an insider found the current price of US$81.79 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for General Electric share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 73.54k shares for US$5.5m. On the other hand they divested 1.44k shares, for US$107k. Overall, General Electric insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. General Electric insiders own about US$218m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About General Electric Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like General Electric insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course General Electric may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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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