[Special Stock] Samsung Electronics Declines Despite Executive Stock Purchases

Q3 Earnings Expected to Fall Short of Consensus
Brokerages Continue to Lower Target Prices

Samsung Electronics is showing a downward trend on the 10th. Despite executives including President No Tae-moon purchasing company shares one after another, investment sentiment has weakened due to concerns over earnings.

As of 9:27 AM, Samsung Electronics is trading at 66,800 KRW, down 1.04% (700 KRW) from the previous day. On this day, Samsung Electronics' stock price fell to as low as 66,500 KRW during the session. Foreign investors are currently selling shares worth 10.688 billion KRW. Foreign investors have been on a selling streak for eight consecutive trading days since the 3rd.

On the morning of this day, Samsung Electronics announced that No Tae-moon, President of the Mobile Experience (MX) Division, purchased 5,000 shares on the 9th, bringing his total holdings to 23,000 shares. Earlier, Han Jong-hee, Vice Chairman and Head of the Device Experience (DX) Division at Samsung Electronics, revealed that he purchased 10,000 Samsung Electronics shares for the first time in two and a half years.

The reason for the fluctuation in Samsung Electronics' stock price is interpreted as the result of securities firms consecutively lowering their target prices due to concerns over earnings. Starting with DB Financial Investment (130,000 KRW → 95,000 KRW), KB Securities (110,000 KRW → 100,000 KRW), and Hyundai Motor Securities (110,000 KRW → 104,000 KRW) have all lowered their target prices.

DB Financial Investment forecasted Samsung Electronics' third-quarter revenue at 78.9 trillion KRW and operating profit at 11.1 trillion KRW. They explained that due to sluggish demand, these figures are expected to fall short of consensus estimates by 6% and 19%, respectively.