Jeffrey W. Priest, President and CEO of General American Investors Co Inc (NYSE:GAM), a $1.22 billion market cap investment company trading at an attractive P/E ratio of 4.3, recently acquired 6,000 shares of the company's 5.95% Preferred Stock. The transaction, which took place on December 16, 2024, was executed at a price of $24.996 per share, totaling approximately $149,976.
Following this purchase, Priest's direct ownership of the preferred stock increased to 15,392 shares. The company maintains a remarkable 53-year track record of consecutive dividend payments, currently offering an attractive 8.6% dividend yield. In addition to his direct holdings, Priest holds other shares indirectly through various means, including by parent, power of attorney, and a thrift plan trust, although he disclaims any beneficial interest in these shares.
Priest's acquisition is part of his ongoing involvement in the company's stock, reflecting his role as a key executive in the firm. General American Investors, based in New York, is known for its investments in publicly traded and private companies. According to InvestingPro, the company maintains a "GREAT" overall financial health score, with particularly strong performance in growth and profitability metrics.
In other recent news, General American Investors Company, Inc. continues to implement strategic efforts to optimize shareholder value. The company's board of directors has decided to renew its preferred stock buyback program, which operates independently from the common stock repurchase program. To date, the company has repurchased and retired a total of 398,447 shares of preferred stock, demonstrating its ongoing strategy to manage share capital effectively.
Additionally, General American Investors has announced a combined dividend and distribution totaling $4.50 per share for its common stockholders. This payment includes a $4.05 per share distribution from net long-term capital gains and a $0.45 per share dividend from estimated undistributed net investment income for 2024. A dividend and distribution of $0.371875 per share has also been declared for the holders of the 5.95% Cumulative Preferred Stock, Series B.
In a move to further enhance shareholder value, the company has authorized the repurchase of an additional 1,000,000 shares of common stock. This action is part of an ongoing buyback program initiated in 1995, which has seen the company repurchase 33.2 million shares at an average discount of 14.2%, costing a total of $1.0 billion. These are among the recent developments at General American Investors.
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