OTP Executive Share Sales Surge in June Amid Share Price DropEdith Balazs
Share sales by Hungary’s OTP Bank Nyrt. executives and board members have soared in June, with transactions in the past week accounting for 81 percent of total sales so far this year.
OTP executives sold a combined 358,441 shares in the past week compared with a total of 441,251 sold since Jan. 1, according to statements published on websites of the bank and the Budapest bourse. Chief Financial Officer Laszlo Bencsik sold a combined 80,000 shares this month, while Daniel Gyuris, the deputy chief executive officer, sold all his 54,385 shares.
“The share price is currently at rather high levels compared to previous years, this may have prompted executives to sell some of their holdings,” Attila Gyurcsik, an analyst at Budapest-based brokerage Concorde Zrt., said by phone today.
The Cabinet of Prime Minister Viktor Orban announced this week that it would raise the financial transaction tax and request a 7 percent charge from commercial banks on municipal debt taken over by the state.
OTP’s share price declined 3.1 percent this week after the measures were unveiled and traded 0.3 percent weaker at 4,785 forint by 12:08 p.m. in Budapest, falling for a third day.
OTP executives traditionally receive their compensation in the form of company shares at this period of year, so share sales may also occur around this time, OTP said in an e-mailed response to Bloomberg questions. The sales aren’t connected to recent government announcements raising the burden on local banks, according to the e-mail.
The bank is planning to buy its own shares at it seeks to hold around 1,750,000 common shares, OTP said last month.