General American investors chairman sells preferred stock for $278k

Published 02/04/2025, 00:00
General American investors chairman sells preferred stock for $278k

Spencer Davidson, Chairman of General American Investors Co Inc. (NYSE:GAM), a $1.19 billion market cap company with an impressive 8.88% dividend yield and a P/E ratio of 5.07, has recently sold a significant portion of his holdings in the company’s 5.95% Preferred Stock. According to InvestingPro data, GAM has maintained dividend payments for 54 consecutive years, showcasing strong financial stability. According to a Form 4 filing with the Securities and Exchange Commission, Davidson sold 11,199 shares at a price of $24.8278 each, totaling approximately $278,046.

Following this transaction, Davidson’s indirect ownership, held through various trusts, now stands at 22,400 shares of the 5.95% Preferred Stock. Additionally, Davidson holds other shares directly and in an IRA account, as outlined in the filing.

In other recent news, General American Investors Company, Inc. has announced a spill-over capital gain distribution of $0.25 per share for its common stock. This distribution is derived from net long-term profits on securities sold between November 1, 2024, and December 31, 2024, and will be taxable as long-term capital gain income. Stockholders of record as of February 24, 2025, are set to receive the cash payment on March 7, 2025, and it will be included in their federal income tax returns for the year 2025. Additionally, the company’s Board of Directors has declared a dividend and distribution of $0.371875 per share on its 5.95% cumulative preferred stock, series B. This payment is scheduled for March 24, 2025, for shareholders on record as of March 7, 2025, covering the accrual period from December 24, 2024, through March 23, 2025. The taxable portions of this distribution will be communicated to preferred shareholders in early 2026. General American Investors, which manages total net assets of approximately $1.4 billion, continues to maintain its presence in the investment community. The aggregate liquidation value of the preferred stock is reported at $190 million.

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