Anang K. Majmudar, the Senior Vice-President of General American Investors Co Inc (NYSE:GAM), recently acquired 427 shares of the company's 5.95% Preferred Stock. The transaction, dated December 31, 2024, was executed at a price of $24.92 per share, totaling approximately $10,640. The company, currently valued at $1.19 billion, maintains an impressive dividend track record spanning 53 consecutive years, with a current yield of 8.78%. Following this purchase, Majmudar holds 5,400 shares in joint tenancy with his spouse. Additionally, he indirectly owns 24,931 shares through the company's Employees' Thrift Plan Trust, although he disclaims any beneficial interest in these shares. According to InvestingPro, GAM demonstrates strong financial health with a GREAT overall score, and trades at an attractive P/E ratio of 4.2. Subscribers can access 6 additional ProTips and comprehensive financial metrics for deeper analysis.
In other recent news, General American Investors Company, Inc. has been making strategic moves to manage its capital structure and optimize shareholder value. The company's board of directors has continued its preferred stock buyback program, which has already seen the repurchase and retirement of a total of 398,447 shares. This initiative operates separately from the common stock repurchase program, allowing the company to adjust its capital structure on multiple fronts.
In terms of dividends, General American Investors recently 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. Additionally, a dividend and distribution of $0.371875 per share has been declared for the holders of the 5.95% Cumulative Preferred Stock, Series B.
Furthermore, the company has authorized the repurchase of an additional 1,000,000 shares of common stock, contingent upon the shares trading at a minimum 8% discount from their underlying net asset value. 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 recent developments could influence investment decisions regarding General American Investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.