An Insider in MTN Nigeria has spent the sum of N108.5 million to purchase new shares in the leading telecommunications firm in Nigeria.
Karl Toriola, a Non – Executive Director, bought 920,000 shares of MTN Nigeria at N118 per share, according to a filing on the Nigerian Stock Exchange (NSE).
The date of the transaction was on June 25, 2020.
MTN Nigeria has traded largely sideways in the past month and at a discount to MoneyCentral fair value estimate of around N150 per share.
This purchase by Toriola the MTN Insider may be an indication that the stock is still largely undervalued by the market due to the negative risk premium.
MTN is one of the major winners in during the current coronavirus pandemic lockdown as demand for data and all things digital soar.
MTN Nigeria paid a total dividend of N7.92 for 2019. Assuming the payout ratio remains the same for 2020, it means that Toriola would earn N7.2 million in dividends by year end, from just this recent purchase.
MTN Nigeria stock is trading at around N116 per share and has a market capitalization of N2.36 trillion.