GE director James Tisch discloses $54 million stock purchase
General Electric Co. board member James Tisch disclosed the purchase of nearly $ 54 million worth of GE stock, becoming the third company insider to buy shares in the past week as prices hovered around six-year lows.
The Form 4 filing with the Securities and Exchange Commission, which was released late Wednesday, details multiple trades on Nov. 21 that give Tisch indirect ownership of 3 million shares at a weighted average price of $ 17.90, which values the stake at $ 53.71 million.
The stock GE, +0.22% traded in a range of $ 17.70 to $ 18.07 on Nov. 21, before closing at a six-year low of $ 17.83.
GE’s stock rose 0.2% to close Friday at $ 18.19. After rallying 1.8% on Wednesday, the stock managed back-to-back gains for the first time in five weeks.
Tisch, who has been an independent director of GE since 2010, didn’t own any GE shares before the purchases. He is the chief executive officer and co-chairman of Loews Corp. L, -0.02% a holding company that owns companies operating in the energy, hospitality and packaging industries.
GE shares have tumbled over the last five weeks after the industrial conglomerate reported the first profit miss in 2½ years on Oct. 20, and after new Chief Executive John Flannery’s turnaround plan unveiled Nov. 13 disappointed investors.
Don’t miss: GE’s stock suffers worst day in 8 1/2-years after transformation plan unveiled.
See also: GE’s pledge to be more accountable comes after SEC comments, stock plunge.
But as prices fell, Flannery bought over $ 1 million worth of stock on Nov. 15, at a price of $ 18.27. On Monday, GE board member Francisco D’Souza, who is also the CEO of Cognizant Technology Solutions Corp. CTSH, +0.78% followed by buying just under $ 1 million worth of stock.
This table details Tisch’s purchases on Tuesday:
According to the filing: “The reported shares are owned directly by Loews Corporation, of which the reporting person is an executive, director and shareholder. The reporting person disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest, if any, therein.”
At current prices, Tisch’s stake is worth $ 54.57 million, meaning the value has already increased by more than $ 850,000.
GE shares have plunged 25.1% over the past three months, while the SPDR Industrial Select Sector exchange-traded fund XLI, +0.00% has climbed 6.3% and the Dow Jones Industrial Average DJIA, +0.14% has rallied 8.2%.