The Aussie Broadband Ltd (ASX: ABB) share price could soon chart into greener territory due to its CEO Phillip Britt purchasing a substantial number of shares, according to Shaw & Partners senior investment advisor James Nicolaou.
Britt plucked 184,000 ordinary shares from the market on Tuesday, amid Nicolaou observing that the sell-off in Aussie Broadband shares was "overdone," as reported by The Australian.
Nicolaou believes Aussie Broadband's forecast for the next financial year underpromises its potential.
Nicolaou stated:
The takeaway being that operating leverage, changes in ARPU and other differences could see more bullish upside, we viewed FY23 guidance as a conservative start and still encompassing solid growth.
Aussie Broadband's revenue guidance for FY23 is between $800 million and $840 million, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin will be 10% to 10.5%.
Aussie Broadband's share price plummeted 18% after it published its financial results for FY22 on Monday. My Foolish colleague Tony observed that this was despite the company posting "record revenue and earnings."
The Aussie Broadband share price is down 16% so far this week.
Aussie Broadband share price snapshot
The Aussie Broadband share price is down 45% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down much less over the same period by 10%.
Shares of the telco are down 2.6% shortly after the market open this morning to $2.59.
The company's market capitalisation is $632.18 million.
