A filling on the NSE revealed that Access Bank CEO has sold about 100 million shares worth just over a billion Naira since the turn of the year.
The trades we’re done over days between Jan 10 and Jan 20 at an average price of N10.44
Bloomberg reports that the CEO owns about 1.44 billion shares, so in the grand scheme of things, 100 million shares (7% of his stake) isn’t particularly significant in my opinion.
It’s also important to note that the shares are an indirect holding via Trust and Capital Limited.
By the way, I like that the NSE now reports dealing in shares by company insiders.
What should investors make of this?
As investors, I think that insider buying is potentially more interesting than insider selling. Because, with insider selling, it could just be funds to take care of some bills.
You should however, flag insider selling and put it on a watchlist. You can then red flag it if it becomes aggressive, persistent and of significant volume. The reason is you shouldn’t red flag (which should lead to a sell trade) is to avoid panic sales if there is nothing to see.