BRI Executives Show Confidence Through Share Purchases

Directors of PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) have recently engaged in significant share purchases, signaling confidence in the company's future prospects. BRI's Deputy CEO, Catur Budi Harto, acquired 230,000 BBRI shares on June 7, increasing his total holdings to 4,045,557 shares. Similarly, BRI's CFO, Viviana, purchased 280,000 BBRI shares on the same day, raising her total holdings to 3,659,500 shares. On June 10, the Director of Micro Business, Supari, also bought 213,300 BBRI shares for personal investment purposes, bringing his total holdings to 4,970,914 shares.

Despite a 23% year-to-date decline in BBRI stocks, the company has demonstrated strong growth. Analysts from RHB Securities, Andrey Wijaya and David Chong, anticipate a potential price increase for BBRI shares, considering the existing risks. BRI's financial report highlights leading profit growth among Big Cap banks in the first four months of 2024, with a 4.5% year-on-year increase driven by robust loan growth and an effective cost of credit (CoC).

Andrey and David emphasize BBRI's sector-leading performance, pointing out a CoC decrease to 3.7% for 4M24 and stable CASA and LDR ratios. The 4.5% profit growth aligns with analysts' expectations, representing 28% of the yearly forecast. RHB Securities maintains a Buy recommendation for BBRI stocks with a target price of Rp6,300 per share, projecting a 40% potential increase. Bloomberg consensus also advises buying BBRI stocks, setting a target price of Rp6,105 per share over the next 12 months.

Analysts Jayden Vantarakis from Macquarie and Erni M. Siahaan from Ciptadana Securities have both suggested purchasing BBRI stocks, with target prices of Rp6,630 and Rp7,000 per share, respectively, reflecting a positive outlook for BBRI's performance.

The proactive share acquisitions by BRI's top executives, coupled with optimistic analyst forecasts, indicate a promising future for BBRI stocks despite recent market challenges. Investors may find the current dip in stock price as an opportunity to capitalize on the potential growth of PT. Bank Rakyat Indonesia.