The share price of Samsung Electronics has been stagnant for some time now. Investors have repeatedly called on the company to improve shareholder returns, and while Samsung has made some efforts, they haven't been enough. Foreign investors have already dumped billions of dollars worth of Samsung shares.
One of the ways companies can support their stock price, and show that insiders have confidence in the company's potential, is to have top executives buy shares. That's precisely what some of the top executives at Samsung Electronics have done.
Samsung Electronics stock has traded sideways this year
Leading Samsung Electronics executives have purchased more than 15,000 shares of the company this month, in a bid to show their support for the stock. A total of 15,490 shares worth 1.15 billion won or $832,063 were bought by six executives.
TM Roh, head of Samsung's mobile vision, purchased 5,000 shares, increasing his total holding in Samsung Electronics to 18,000 shares. Samsung president and head of its corporate management office Park Hark-kyu bought another 5,500 shares to take his total holdings to 28,000 shares.
Other executives that picked up shares include Kim Dong-wook, EVP and head of Samsung's finance team, who bought 2,000 shares. Jung Jae-wook, EVP and head of Samsung's AI center, bought 1,330 shares.
Samsung Electronics' stock price has struggling to rebound from the 70,000 won or $50 range when compared to its competitor SK Hynix. Since the start of this year, SK Hynix's share price has risen by nearly 47% while Samsung's stock price has decreased by 1.5%.
Whether this serves as a vote of confidence enough for other investors remains to be seen. Amidst rampant selling by foreign investors, there doesn't seem to be enough demand in the market to pick up Samsung's stock, which is why the prices remain under pressure. The company certainly needs a few big wins for the stock to find its upward momentum.
