United Bank for Africa (UBA) Plc on Thursday announced that one of its non-executive directors purchased total shares of 500,000 on July 8, 2021.
This was disclosed in a statement signed by Bili A. Odum, Company Secretary, United Bank for Africa Plc and released on the Nigerian Stock Exchange’s website. The bank said Caroline Anyanwu, a Non-Executive Director of the company, bought 500,000 shares at N7.65 a unit through the Nigerian Stock Exchange.
What does this mean?
For investors, one of the few indicators of a firm’s share price prospects lies in whether their directors “put their money where their mouths are” – that is, buy shares in the companies they oversee, even when all the news is doom and gloom and the shares are sliding in price.
In buying shares in their own firms, they are signalling they have confidence in the company’s future – and that the share price they are buying at represents good value.
Although some of this buying may be an attempt by bosses to instil confidence in their firm’s shares, it can also be read as a signal that share prices are close to bottoming out and represent a buying opportunity for brave investors.
