The Group Managing Director of Zenith Bank, Dr Adaora Umeoji, acquired N732.6 million worth of shares. According to the corporate action published recently, the banker bought 11 million units of the company's shares at N66.6.
Why the action?
A stock market company makes directors’ actions public, especially when it involves the entity's shares. This keeps investors informed and improves decision-making. Also, a stock market is efficient when directors' information is publicly available. These attract local and foreign investors to the Exchange and enhance liquidity.
Directors' dealings influence the market, individual and institutional investors can decide on whether to buy, sell, or hold their shares based on the actions of directors. In this case, the acquisition may encourage investors to buy more of Zenith Bank shares.
Note that we are at the end of the year for the 2025 financials. And the directors have privileged information about the company. Directors know beforehand of future earnings calls. And if the profit to be declared is higher than the previous period. Based on this, they can make a buy on the company's shares.
Market Sentiment on Zenith Bank stock
The Group’s managing director buys the company's shares on the 26th of November at N66.60 per share. Today's market reveals that Zenith Bank’s shares closed at N60.5 per share. A total of 15,065,500 units were sold valued at N908.4 million. The market chart revealed that the company has maintained a share price of a little above 60 Naira for the week.
This might mean that investors' sentiment on the stock remains neutral despite the huge acquisition by the group’s managing director. Most investors are holding their shares waiting for the next corporate action by Zenith Bank. However, more shares were bought but the demand was not enough to push the price of the shares above N60.