General Motors CEO Dan Akerson has bought $250,500 in shares, as stated in a regulatory filing. Akerson reportedly purchased 10,000 shares at $25.05, making him own a total of 103,600 shares.
GM’s shares had declined as the stock market faced its worst rout, erasing over $6.7 billion from the value of the stock held by the U.S. Treasury Department. In New York Stock Exchange composite trading today, GM shares dropped by $1.62, or 6.34%, to close at $23.92.
Last week, GM posted profits of $2.52 billion, or $1.54 a share for the second quarter. This exceeded the $1.20 a share average estimate of 13 analysts that Bloomberg surveyed. Sales increased by 19% to $39.4 billion, boosted by the gains in pricing as well as the truck production.
The U.S. Treasury owns 500 million shares of GM. This stake had a value of $19.5 billion on Jan. 7, when the stock reached its peak at close of $38.98. Treasury's holdings at today's closing price were valued at $11.96 billion.
An insider said last month that the government aimed to assess GM's second-quarter earnings and the market's reaction before making a decision to sell more of its investment.
This source added that the department seeks to sell its stake for at least the November initial public offering price of $33 a share and would prefer to sell in the high-$30 range.
A report from The Wall Street Journal last Tuesday revealed that U.S. officials have put on hold its plans to sell the shares. GM wants to break away from government ownership so that restrictions on executive pay will be removed.