Sharechat Logo

MRP directors mop up shares as price slides, blackout period looms

Wednesday 29th May 2013

Text too small?

MightyRiverPower directors have taken advantage of the slide in the state-controlled power company's price since its listing, buying up shares before trading restrictions for the board kick in at the end of the month.

Shares in MRP were unchanged at $2.44 today, still below their $2.50 listing price, having shed almost 11 percent from the high it reached on its debut on May 10. The stock is rated an average 'buy' according to a Reuters survey, with a median price target of $2.82.

While some investors have been willing to sell below the listing price, three MRP directors, including chair Joan Withers and her deputy Trevor Janes, have been buying shares on market, according to disclosure notices lodged with the stock exchange.

The directors face a 'blackout' period on May 31, when restrictions are placed on their ability to trade until the company's earnings are announced. The next 'blackout' period kicks off on Nov. 30 and lasts until the first-half results are announced.

Janes made the biggest acquisition on May 28, buying 41,600 shares at $2.363 apiece, or $98,300, according to a disclosure notice lodged with the NZX. His purchase came as director James Miller went on market to buy shares three times as the price fell, with 4,000 shares at $2.48 on May 24, 2,000 more at $2.45 on May 27 and a further 2,000 shares at $2.38 on May 28. Withers bought 12,500 shares at $2.57 apiece on May 16.

When directors and officers buy shares on market, it's typically viewed as a vote in confidence in a company, implying the trading price is below internal valuations.

MRP is New Zealand's second largest listed electricity company, after Contact Energy and displacing TrustPower, and is expected to be included in the NZX 50 Index, perhaps in July, once it has satisfied NZX rules requiring shares to trade and demonstrate their qualification for inclusion.

Both will be eclipsed when Meridian Energy is listed later this year, which may come in two tranches due to its size.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mighty River Power announces share buyback programme
MRP director Miller, CFO Meek go trawling for cheap shares
Mighty River Power profit jumps, beating prospectus, as sales fall
MightyRiverPower, Meridian's utility characteristics miss Fisher's growth criteria
Australian funds were biggest sellers of MightyRiverPower
Power companies dominate Top 10 as MRP enters NZX50
MRP extends option to up stake in US geothermal firm
MightyRiverPower shares dip below $2.50 offer price
MRP senior managers in line for $1.2M in bonus shares
MightyRiverPower debuts at $2.73, a 9.2 percent gain from IPO

IRG See IRG research reports