Guess how much insiders have been spending on AMP shares?

AMP insiders have been buying shares. Here's what you need to know…

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

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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."

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.

More on Financial Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

2 rising ASX financial shares with 'meaningful upside' still left: fundie

Financials outperformed every other sector in FY25, but there are still buying opportunities left, say these experts.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Financial Shares

Macquarie shares sink 5% on Q1 update

The investment bank is having a tough start to the year.

Read more »

A man holds his baby on his lap at the dining room table while he looks at his laptop screen earnestly.
Financial Shares

After its result, does Macquarie rate AMP shares a buy, hold or sell?

The financial services company released a strong second-quarter update on Monday.

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Red sell button on an Apple keyboard.
Financial Shares

ASX 200 financials was the best sector of FY25. But it's time to sell these 2 stocks, say experts

The ASX 200 financials sector gave investors a near-30% total return in the 2025 financial year.

Read more »

Happy woman working on a laptop.
Financial Shares

AMP share price jumps on strong Q2 update

Let's see what the financial services company reported for the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Financial Shares

The pros and cons of buying IAG shares this month

Is this the right time to invest in the insurance giant?

Read more »

man analysing share price
Financial Shares

ASX 200 financial services rivalry: Should I buy Hub24 or Netwealth shares?

Let's compare the pair.

Read more »