*Why are insiders in FirstBank, Zenith Bank, UBA, Fidelity Bank hurriedly buying their stocks?
In the lead-up to their 2025 financial report releases , a number of Nigeria’s banks have bet their money on their own stocks in the bid to either inspire market confidence or cash on what they know in their closets.
Four banks, all first tier, went for broke on insider dealings between last June and December, according to the 2025 disclosure reports on NGX. C-suite executives, their companies, and bank’s subsidiaries, numbering 25, bought 569,285,896 shares in the four banks.
By volume, First Bank sold 92% of the total traded shares, and its chairman Femi Otedola with his affiliate Calvado Global Services Ltd, two of the six insiders that participated in the deals, bought 444,644,400 of the lot.
Zenith Bank racked up the highest number of deals, 18 transactions by eight insiders, including its subsidiary Zenith Staff Provident Fund. Its volume of trades, 23,250,580, however, trailed First Bank’s.
Fidelity Bank did the least of the deals—6,136,000, just 1.1% of the total deals, by four insiders.
UBA was also among those that dominated the insider deals as seven insiders bought 11,251,554, about 2% of the overall deals.
In what looked like a scramble to max out the window before the closed period, most of the insider deals by Zenith Bank concentrated on December 19. A closed period is the time preceding major announcements when insiders cannot legitimately play the market.
UBA’s insiders bought almost 90% of theirs on September 30 while First Bank’s doubled down on buying between December 12 and 19.
Ratings
As the insiders take position before the banks’ fourth quarter report announcements, analysts have projected outlooks that reinforce the bullish moves.
Zenith Bank, six analysts noted, remains undervalued. So with its revenue and earnings growth projections at 16.4% and 17.3% respectively, and a price target between N88 and N93 per share, a strong buy, the analysts said, is in order.
Ditto for Fidelity Bank. At least for the next 12 months, analysts projected earnings growth riding on loan expansion, higher payouts, and a N25-share price target.
For FirstBank, the insider dealings might not change the outlook in any significant way. It remains positive, no doubt. Which was why analysts projected a buy rating for the FBN Holding. Its 128% rise in profit after tax, the 52% rise in price appreciation, and the new capitalization hurdle it just cleared should have given the stock a bounce, too. But its current low price-earnings and price-book ratios reveal the stock is also undervalued.
UBAs stock reflects its own market value, and even has room for growth, with price targets ranging from N52 to N71 per share, according to analysts. The bank’s low-risk profile, expected strong earnings and revenue growth (15%-17% annually), its stability, and successful recapitalization effort have swayed analysis to also recommend a “strong buy”.
