Anang K. Majmudar, Senior Vice-President of General American Investors Co Inc (NYSE:GAM), recently acquired 83 shares of the company's 5.95% Preferred Stock, valued at approximately $2,074. The shares were purchased at a price of $24.99 each, bringing Majmudar's direct holdings to 4,973 shares. The company, currently valued at $1.2 billion, boasts an impressive 8.76% dividend yield and trades at a P/E ratio of 4.25. According to InvestingPro, GAM has maintained dividend payments for 53 consecutive years. Additionally, Majmudar holds 4,402 shares of Common Stock directly and 24,931 shares indirectly through the company's Employees' Thrift Plan Trust. The indirect holdings are noted as being held by the Thrift Plan Trust, with Majmudar disclaiming any beneficial interest in these shares. InvestingPro analysis reveals the stock generally trades with low price volatility, with a beta of 0.92. Get access to more exclusive insights and detailed metrics with InvestingPro.
In other recent news, General American Investors Company, Inc. has declared a combined dividend and distribution of $4.50 per share for its common stockholders, which 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. In addition, a dividend and distribution of $0.371875 per share has been declared for the holders of the 5.95% Cumulative Preferred Stock, Series B. The company has also 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.
Continuing with its strategic effort to optimize shareholder value and manage its capital structure efficiently, General American Investors has renewed its preferred stock buyback program. To date, the company has repurchased and retired a total of 398,447 shares of Preferred Stock. This program operates independently from the common stock repurchase program, allowing the company to adjust its capital structure through both avenues.
These recent developments could influence investment decisions regarding General American Investors. The company's overall financial health score, according to InvestingPro metrics, remains great, with notably low price volatility and consistent profitability over the last twelve months.
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