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.”