Lots of stock buybacks, see analyst suggestions so investors can earn money

Reporter: Kenia Intan | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Throughout July 2021, a number of issuers announced that they would buy back shares or buyback. According to Kontan.co.id’s records, there are five issuers that plan to buyback that is BBNI, WHEEL, SCMA, MEDC, and PALM.

According to Kontan.co.id’s records, the issuers allocated between Rp 54.28 billion to Rp 1.7 trillion to buy back shares. The largest allocation of funds was issued by BBNI of up to Rp 1.7 trillion.

After that, SCMA has set aside funds of up to Rp 1 trillion. Meanwhile, MEDC and PALM will prepare a maximum of Rp 130.5 billion and Rp 54.28 billion.

Meanwhile, ROTI is planning buyback a maximum of 300 million shares with a maximum price of Rp. 1,600 per share. Thus, according to Kontan’s calculations, ROTI has budgeted approximately Rp 480 billion.

Also Read: Still Emergency PPKM, CIMB Niaga encourages customers to pay bills using OCTO Mobile

Sucor Securities analyst Hendriko Gani said, buyback can actually benefit investors. The decline in prices that occurred in the period buyback tends to be less because buyback can withstand downside stock movements.

“There is buyer who are ready to buy if the price drops,” said Hendriko to Kontan.co.id, Thursday (22/7). undervalue, according to the issuer.

Therefore, investors can take advantage of this momentum with long-term purchases if they believe the company’s fundamentals are still good and the shares traded at low valuations.

Investors can also use it for the short and medium term with technical analysis. However, for the two strategies, investors need to pay attention to the purchase method of each issuer.

Also Read: Undervalued price, Bank BNI (BBNI) will buy back shares of up to Rp 1.7 trillion

Because, buyback shares will not raise the share price if it is done gradually or slowly. It’s different when it’s done aggressively or immediately buys at whatever the bid price is.