Compact Directors Buy BBRI Shares, What's Up?

Illustration (Photo: Doc. ANTARA)

JAKARTA - The action of buying shares was carried out by the Board of Directors of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).

Citing the information disclosure of the Indonesia Stock Exchange (IDX) on June 12, 2024, it was recorded that three BRI directors, namely BRI Deputy President Director Catur Budi Harto, BRI Finance Director Viviana Dyah Ayu and Micro Supari Business Director, purchased BBRI shares in various amounts.

On June 7, 2024, Catur Budi Harto bought 230,000 shares of BBRI, bringing the current share ownership to 4,045,557 shares.

On the same date, June 7, 2024 Viviana also bought 280,000 shares of BBRI so that currently Viviana owns 3,659,500 shares of BBRI. After 3 days, namely on June 10, 2024 Supari bought 213,300 shares of BBRI, which makes Supari currently own 4,970,914 shares of BBRI.

In this regard, BRI Corporate Secretary Agustya Hendy Bernadi revealed that the purchase of BBRI shares by this board of directors was private.

"The purpose of the transaction is for investment," said Hendy, quoted on Thursday, June 13.

BBRI's own shares are under pressure. On a year-to-date basis, BBRI's stock performance was recorded to be corrected by 23 percent. The recent weakening movement of BBRI's shares is inversely proportional to the company's strong performance and positive growth.

It was revealed by RHB Sekuritas analysts who assessed that the potential for an increase in share prices would be greater because the risk had been taken into account. This was explained by RHB Sekuritas analyst Andrey Wijaya, and David Chong in a research published on Tuesday, June 11.

Based on financial reports, BRI managed to record the fastest increase in profit growth in the first four months of 2024, as well as being the highest among other Big Caps banking types.

BBRI's profit for performance from January to April (4M24) (Bank Only) increased 4.5 percent on an annual basis at year on year (yoy) driven by strong loan growth, and credit cost effectiveness or Cost of Credit (CoC).

Loan growth managed to grow 12 percent yoy in April, this figure also increased compared to last March which only increased 10.9 percent yoy.

Andrey and David highlighted the achievement of BBRI's attractive state-owned bank performance, calling the growth the fastest in the sector.

CoC 4M24 fell to 3.7 percent (3M24; 3.8 percent), with expectations going down below 3 percent for the whole year. CASA and LDR ratios remain stable," they explained in their research.

The profit for the first four months of 2024, which increased 4.5 percent, is also in line with analyst expectations. Equivalent to 28 percent of estimates for the whole year.

On the basis of this very attractive potential, RHB Sekuritas maintains and affirms the recommendation of Buy/Buy BBRI shares with a target price of up to IDR 6,300/share with a potential increase of 40 percent. in line with a very good performance.

On the other hand, 33 compact analysts recommended Buy, Buy BBRI shares based on Bloomberg consensus.

While none of the analysts recommend Sell. The whole thing is compact in embedding Buy's rating. The Bloomberg consensus resulted in a potential price target of IDR 6,105/share for the next 12 months.

Most recently, Jayden Vantarakis, Macquarie analysts gave a buy recommendation with a target price of IDR 6,630/share. More optimistic, Erni M. Siahaan, Ciptadana Sekuritas analysts provide a buy recommendation with a target price of IDR 7,000/share.