Tech

IBM CEO Rometty buys $3 million in company stock

Key Points
  • The stock purchases come just one week after IBM announced a $34 billion proposed acquisition of Red Hat. 
  • Roughly $1 million of the shares were bought on the open market — the first time Rometty has bought stock on the open market, according to IBM.
  • Rometty now holds more than 314,000 shares of the company's stock, worth more than $36 million at IBM's opening price Monday. 
Ginni Rometty, CEO of IBM on Mad Money to discuss IBM's acquisition of Redhat.
Adam Jeffery | CNBC

IBM CEO Ginni Rometty bought $3 million worth of the company's stock, according to an SEC disclosure filed Monday and a company statement. The stock purchases come just one week after IBM announced a $34 billion proposed acquisition of open-source software distributor Red Hat.

Roughly $1 million of the shares were bought on the open market — the first time Rometty has bought stock on the open market, according to IBM. The other $2 million worth was purchased through a retirement fund.

IBM told CNBC that Rometty now holds more than 314,000 shares of the company's stock, worth more than $36 million at IBM's opening price Monday.

Shares of IBM rose about 3 percent in early morning trading Monday to trade around $119, reversing some losses from last week. The stock shed more than 7 percent last week amid overall market turmoil and questions around the company's proposed acquisition of Red Hat.

Several other board members and IBM executives bought company stock Monday, according to regulatory filings.

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—CNBC's Peter Schacknow and Jim Cramer contributed to this report.