Guess how much insiders have been spending on AMP shares?

Man presses green buy button and red sell button on a graph.

Man presses green buy button and red sell button on a graph.

After a strong start to the year, recent market volatility has been weighing on the AMP Ltd (ASX: AMP) share price.

This means that the financial services company’s shares have now dropped into the red in 2022.

Is this a buying opportunity?

While this weakness in the AMP share price is disappointing, insiders at the company appear to see it as a buying opportunity.

A number of AMP’s directors have been buying shares on-market in recent weeks. This includes the company’s chair, Debra Hazelton, who picked up 89,687 shares at the end of May for an average of $1.115 per share. This equates to a total consideration of $100,000.

But that wasn’t the largest purchase. Another change of director’s interest notice reveals that independent non-executive director Mike Hirst bought 100,000 shares through a couple of on-market trades at the start of June.

Hirst paid a total of $109,700 for the parcel of shares, which equates to an average of $1.097 per share.

Rounding things out, fellow independent non-executive directors Kate McKenzie and Michael Sammells both snapped up 50,000 shares via on-market trades recently for an average of approximately $1.10 per share.

So, with the AMP share price currently fetching 98 cents, investors are able to purchase shares at a discount of approximately 11% to what most of these directors paid.

Is the AMP share price good value?

Although Citi only has a (high risk) neutral rating, the broker appears to see value in the AMP share price with its price target of $1.20.

However, it feels that it may be a little soon to push the buy button. Citi commented:

“AMP’s earnings outlook is becoming easier to assess but there is still a lot of transition happening and several moving parts making it still quite hard. [..] To us, it still seems a little early for AMP with meaningful earnings improvement unlikely until FY23E.”

The post Guess how much insiders have been spending on AMP shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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