Updated from 6:16 a.m. EST
One of the primary goals of Stockpickr.com is to allow everyday investors to see what the big guns are buying. Often times, we see a big-name investor loading up on a particular stock. This is usually a good sign because you know that person put a lot of time and due diligence into that process. Plus, high-profile investors have bankers, lawyers and consultants breaking down the business every which way imaginable.
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The real icing on the cake, however, is when that same company announces that an insider has purchased a large chunk of stock or even better, the board initiates a new, large share-buyback program.
That's why each Thursday at Stockpickr we update the
Top 10 Insider Purchases and Buybacks portfolio, featuring the stocks that in the last week had either big insider purchases or newly announced buybacks, as well as super-investors accumulating shares.
General Electric(GE Quote - Cramer on GE - Stock Picks) makes this week's portfolio. The Fairfield, Conn.-based industrial conglomerate said it plans to buy back $15 billion in common stock over the next three years, a total repurchase amount that could be increased over the course of the program. By the end of 2007, GE said it will return a total of $26 billion to its investors through dividends and buybacks.
Even among extreme market volatility, GE managed to deliver record third-quarter earnings of $5.5 billion, up 14% from last year, and EPS of 54 cents, up 15% from last year. Revenue jumped 12% to $42.5 billion with organic growth of 8% and global growth of 15%. With major equipment orders surging 39%, total orders came in at $24 billion, beating the same quarter last year by 20%
GE also last week reaffirmed fourth-quarter and full-year 2007 guidance. The company expects EPS to grow 14%-18% in the fourth quarter, and 18%-19% for the full year. In addition, GE raised its quarterly dividend 11% to 31 cents a share.
Hillard Lyons Equity Research is bullish on GE, as the firm upgraded the stock to buy and raised its price target to $44. Analyst Stephen O'Neil commented, "Momentum in the Infrastructure segment appears to be in its early stages. Global revenue continues to grow. GE stock has declined recently, and we feel reflects the difficulties in financial markets. Based on its historic valuation and current prospects, we believe GE warrants a premium to the
S&P 500."
James Altucher
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