Jeff Immelt, former chairman and CEO of GE, bought $1 million of shares of Bright Health, a provider of healthcare services that he serves as a director.
Peter Foley/Bloomberg
Bright Health Group stock has plunged since its market debut, but director Jeff Immelt just bought up shares of the provider of healthcare services.
Bright Health (ticker: BHG) is trading below the $18 it was priced at for its initial public offering in late June. Shares slid on their first day of trading and have continued to slide. The second-quarter report earlier this month hasn’t revived the shares.
Immelt paid $1 million on Aug. 4, the day after the quarterly report, for 114,000 Bright Health shares, a per-share average price of $8.80. According to a form the former General Electric (GE) CEO filed with the Securities and Exchange Commission, Immelt now owns 198,012 Bright Health shares. This is his first open-market purchase of Bright Health stock. Immelt received his other Bright Health shares from the conversion of pre-IPO preferred stock.
Immelt has been a Bright Health director since April 2020. He is also a venture partner of venture-capital firm New Enterprise Associates, which is the largest shareholder of Bright Health with a 34% stake.
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Bright Health didn’t make Immelt available for comment. NEA didn’t respond to a request to make Immelt available.
RBC Capital Markets analyst Frank G. Morgan maintained an Outperform rating and a $22 price target on Bright Health after the company’s earnings report. “We believe weakness through Tuesday’s session is overdone, stemming from explainable factors,” Morgan wrote. He added, “[W]e found nothing in the second quarter that would derail our investment thesis.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
