Shares of General Electric (GE) - Get Report gained on Tuesday, reversing losses from the day before, following confirmation that CEO Larry Culp bought nearly $3 million of company stock in the second quarter -- a nod to his expectations of his turnaround plans yielding positive results.
Shares of GE gained 3.3% to $9.35 on Tuesday after a Securities and Exchange Commission filing on Monday disclosed that Culp bought 331,684 shares of GE at an average $9.04 each in the second quarter. The purchases bring Culp's total holdings of GE to 942,668 shares, or $8.5 million.
GE shares posted heavy declines on Monday after J.P. Morgan analyst Stephen Tusa said he was holding on to his "below consensus" underweight rating on the stock even after last month's stronger-than-expected second-quarter earnings.
"Despite the Street's enthusiasm around a beat to low guidance, fundamentals on net continue to look negative, tough to turn in long cycle markets, especially when technology is lagging," Tusa said in a note to clients.
General Electric said its loss for the three months ended in June was a penny a share, or 3 cents a share from continuing operations.
On an adjusted basis, however, GE earned 17 cents a share, compared with the year-earlier quarter's 8-cent profit and the Wall Street consensus forecast of 12 cents a share.
Group revenue fell 4.3% from the year earlier to $28.8 billion, topping analysts' forecasts of $26.6 billion.