Seven months after purchasing additional shares in Cutix Plc, Ijeoma Oduonye, the Chief Executive Officer of the company, has made some profits, Ripples Nigeria market analysis has revealed.
On April 23, 2021, Oduonye had parted with N2.82 million to acquire 1.45 million ordinary shares of Cutix Plc at an aggregate price of N1.95 kobo per share, taking her total shares to 5.79 million as of July 16, 2021.
However, on October 5, Oduonye engaged in profit-taking, following a price bubble which has seen Cutix share value rise by 152.3 percent in seven months, to sell for N4.92 kobo, after gaining N2.97 kobo during the period.
Oduonye sold 795,000 shares (out of 907,889 shares investors exchanged same day) at an aggregate price of N4.92 kobo, carting home N3.91 million, which is higher than the N2.82 million she paid to acquire 1.45 million in the last week of April.
Following the sell off by the CEO, who was appointed in 2018, Cutix market value plunged almost immediately by 1.02 percent in three days, down to N8.54 billion as of October 8, from N8.63 billion of October 5 – this represents N88.06 million loss.
Note that Oduonye’s dealing was reported by the electronic and electrical company to the capital market authority, NGX, as required. If the two transactions had gone unreported, it would have been viewed as an illegal activity.
Insider trading is vital to investors without inside knowledge, as acquisitions by executives is often noticed, as the executives expect the stock price to appreciate in future, while a sell off implies directors of the company projects depreciation in stock value.
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