Senior executives of Samsung Electronics Co. have bought a combined 10 billion won ($7.61 million) worth company shares that have fallen 21 percent this year in hopes their buyback can prevent retailers from abandoning the bellwether stock.

According to Samsung Electronics’ treasury share ownership data from the regulatory filings by Maeil Business Newspaper on Wednesday, the company’s 48 executives above the vice-president level have acquired a total of 150,109 company shares worth 10.06 billion won through the market so far this year. The average purchase price per share was 67,011 won, suggesting each bears a loss of 7.7 percent on average based on Wednesday’s closing price of 61,800 won.

A company buys back shares when stock prices nosedive, but it is not common for managerial level employees voluntarily buying shares during downturn.

Executive ownership in shares jumped more than three times from 2.76 billion won.

Samsung Electronics shares fell to as low as 55,700 won apiece in June amid growing concerns over the global economic slowdown, but has bounced back more than 10 percent since then, trading at 62,100 won on Thursday, 0.5 percent higher after strong second-quarter earnings.

The tech giant’s operating profit to rise 9.7 percent this year from last year despite challenges, aiding the stalemated stock price.

Samsung Electronics’ stock could be bottoming out after its price-to-book (P/B) ratio hit the historic low of 1.1 times, said Kim Dong-won, an analyst at KB Securities.

Vice-President Hong Hyeong-sun purchased 5,000 shares at the lowest price of 57,000 won, earning an 8.4-percent profit. Lee Jung-bae, president of the memory business & device solutions division, made the largest acquisition, purchasing 10,000 shares worth 701 million won. DS CEO Kyung Kye-hyun bought 537.60 million won, and President Kim Soo-mok acquired 557.15 million won.

By Cha Chang-hee and Jenny Lee

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]