GM CEO Akerson buys $939k in company stock
In spending almost a million dollars to acquire 30,000 more shares of GM stock, CEO Akerson now owns 50,000 shares – holding a value (based on current trading prices) of roughly $1.6 million. The Detroit News reported that this was a personal investment and completely separate of the 60,584 shares of deferred stock issued as payment for his services.
General Motors stock is currently sitting in the mid $31 range – almost $2 below the price of the stock at opening late last year. The GM stock initially climbed in price but since then, it has struggled to get back to the IPO price. However, Akerson’s move to privately purchase another sizable chunk shows his belief in the company’s ability to succeed and his dedication to the future of the company – which could help improve the security of GM stock in the eyes of investors which in turn could boost the value of the stock.
The Federal Government still holds roughly 500 million shares of GM stock issued for their part in the “bailout” of 2009. The Feds plan to sell off this huge chunk of stock (which amounts of 26% ownership) in an effort to recuperate as much of the $49.5 billion loaned to GM when the industry and economy crashed a few years ago. Unfortunately, at the current selling price, the government would take a massive loss if they were to sell their portion of GM stock so it could be some time before GM is out from under the watchful eye of Uncle Sam.
Source: The Detroit News
Other GM News:
GM investing 2 billion in US plants, creating/preserving 4,000 jobs
Chevrolet Volt demo program leading to new sales
GM leads all major automotive groups in April growth, sales
Camaro leads the Mustang, Challenger, 370Z in April 2011
GM recalls the 2011 Chevrolet Cruze for steering, trans issues
The Nissan Leaf beats the Chevy Volt in April sales