The man in charge of embattled General Electric (NYSE: GE) says he is stepping up and buying the company's shares with his own personal funds.
General Electric Chairman and CEO John Flannery revealed he purchased 60,000 GE shares at a stock price of $18.27 on Wednesday in a government securities filing. The transaction is worth nearly $1.1 million.
Flannery's insider buy transaction may be a vote of confidence for the industrial company. GE shares plunged after the company's dividend cut announcement and the unveiling of its turnaround plan during its Nov. 13 investor day.
"The GE of the future is going to be a more focused industrial company," Flannery said during his presentation at the company's investor day. "It will leverage a lot of game-changing capabilities."
Flannery’s purchase comes when GE’s shares are hovering around six-year lows following a poorly received overhaul plan that the 125-year old conglomerate unveiled on Monday. GE was one of the original 12 companies listed on the newly-formed Dow Jones Industrial Average in 1896.
General Electric stock is significantly underperforming the market this year. Its shares have declined 42% year to date through Thursday versus the S&P 500's 15.5% return.
The announcement included a 50% cut to GE’s dividend and a lower earnings forecast for 2018.
Analysts earlier this week said GE’s revamp plan was not aggressive enough and may not be able to revive the company.
Shares of General Electric rose 7.5 cents shortly after Friday's market open to $18.33
