The ultimate Insider in MTN Nigeria has just spent the whooping sum of N108.2 million to purchase new shares in the leading telecommunications firm in Nigeria.
Karl Toriola, the Chief Executive Officer (CEO) of MTN, bought 679,370 shares of MTN Nigeria at an average price of N159.3 per share, according to a filing on the Nigerian Stock Exchange (NSE).
The date of the transaction was on March 24, 2021.
MTN Nigeria is down 8 percent in the past month to close at N160 per share on Friday, and trades above MoneyCentral’s fair value estimate of around N150 per share or 15x earnings.
This purchase by Toriola the MTN CEO may be an indication that he believes that the stock is still largely undervalued by the market.
MTN was one of the major winners during the coronavirus pandemic lockdown as demand for data and all things digital soared.
MTN Nigeria is proposing to pay a final dividend of N5.90 per share for 2020, meaning that Toriola would earn N4.02 million in dividends by May 2021, from just this recent purchase.
MTN Nigeria has a market capitalization of N3.257 trillion.