Eugene S. Stark, Vice President of Administration, Chief Compliance Officer, and Principal Financial (NASDAQ:PFG) Officer at General American Investors Co Inc (NYSE:GAM), recently purchased additional shares of the company’s 5.95% Preferred Stock. The transactions, disclosed in a recent SEC filing, involved the acquisition of 500 shares at a price of $25 each, totaling $12,500. The purchase comes as GAM maintains a strong dividend track record, having paid dividends for 53 consecutive years. According to InvestingPro data, the company currently offers an attractive dividend yield of 8.8%.
The purchases were made on December 30 and included 250 shares acquired directly and another 250 shares held indirectly by Stark’s spouse. Following these transactions, Stark holds a total of 11,500 shares directly and 4,000 shares indirectly through his spouse. Additionally, Stark owns 9,000 shares of the company’s common stock directly and 80,989 shares indirectly via the issuer’s Employees’ Thrift Plan Trust. The company, currently valued at $1.19 billion, has demonstrated strong financial performance with a P/E ratio of 4.2 and maintains an overall "GREAT" financial health score according to InvestingPro analysis.
In other recent news, General American Investors Company, Inc. has been actively managing its capital structure. The company has renewed its preferred stock buyback program, an effort aimed at optimizing shareholder value. To date, this strategy has resulted in the repurchase and retirement of 398,447 shares of Preferred Stock. In addition to this, a further authorization for the repurchase of an additional 1,000,000 shares of common stock has been announced, contingent upon the shares trading at a minimum 8% discount from their underlying net asset value.
General American Investors also declared 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.
These recent developments highlight the company’s strategic approach towards shareholder value and efficient capital structure management.
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