Electrifying Move: Samsung Execs Spark Hope with Bold Treasury Stock Purchase
- This month, Samsung Electronics' top executives have been buying large-scale shares, sparking investor interest in whether their stock buyback will boost the stock price.
- According to the Electronic Disclosure System of the Financial Supervisory Service, between the 5th and the 20th of this month, 12 executives at the executive level or above,...
- Vice Chairman Han purchased the largest amount of treasury stock, buying 10,000 shares of Samsung Electronics common stock on the 5th at a price of 73,900 won, totaling...
Samsung Electronics Executives Buy Large-Scale Shares Amid Falling Stock Price
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This month, Samsung Electronics’ top executives have been buying large-scale shares, sparking investor interest in whether their stock buyback will boost the stock price.
According to the Electronic Disclosure System of the Financial Supervisory Service, between the 5th and the 20th of this month, 12 executives at the executive level or above, including Samsung Electronics Vice Chairman Jong-hee Han, bought a total of 2.6 billion won worth of treasury stocks.
Vice Chairman Han purchased the largest amount of treasury stock, buying 10,000 shares of Samsung Electronics common stock on the 5th at a price of 73,900 won, totaling 739 million won.
Other executives, including CEO Park Hak-gyu and President Noh Tae-moon, have also made significant purchases, with CEO Park buying 401.1 million won worth of treasury stock on the 12th, and President Noh buying 347.5 million won worth of treasury stock.
The reason behind Samsung Electronics executives buying their own shares is seen as an attempt to demonstrate their commitment to responsible management by protecting the company’s stock price during a period of decline.
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This month, Samsung Electronics’ stock price has fallen to its lowest level of the year, with the company’s stock price breaking the 52-week low of 62,200 won on the 19th.
The financial investment industry is closely watching to see if the successive share purchases by executives can boost the stock price, as has been the case in the past.
For example, between June 3 and 25, 29 Samsung Electronics executives bought 4.3 billion won worth of treasury stocks, driving up the stock price. Similarly, between March 5 and 25, five Samsung Electronics executives bought 2.3 billion won worth of treasury stocks, raising the stock price.
In 2022, Samsung Electronics executives also bought back their own shares, significantly boosting the stock price. A total of 28 people bought 4.2 billion won worth of treasury shares in May alone, resulting in the stock price recovering to the 60,000 won range during July and August.
However, the downward revision of performance forecasts by securities firms is a variable that could impact the stock price. According to financial information company FnGuide, 15 securities firms have lowered Samsung Electronics’ target stock price this month.
The average forecast for Samsung Electronics’ third-quarter operating profit has been significantly lowered to 10.328 trillion won (DS Investment & Securities) and 10.42 trillion won (Hanwha Investment & Securities).
This is due to falling memory prices and one-time costs of over 1 trillion won incurred due to bonus payments.
As a result, foreign investors have been selling Samsung Electronics stocks worth 7 trillion won this month alone, leading to a drop in stock prices.
Despite the downward revision of performance forecasts, some analysts believe it’s a good time to ‘buy’ Samsung Electronics stocks from an investment perspective. Kim Gwang-jin, a researcher at Hanwha Investment & Securities, said, “The recent decline in stock prices has been excessive and has fallen to the lowest level of the historical band,” adding, “The current period is a time to consider buying instead of selling.”