Five directors of Telecom Plus have invested a total of £4 million in company shares, backing a new long-term multi-service strategy that recently pushed the stock to a 14-year low.
The strategy caused a 25 percent slide for the FTSE 250 company due to a rebasing of near-term profits amid aggressive competition.
Non-executive chair Charles Wigoder led the transaction by investing £3.5 million, increasing his stake to 11.4 percent.
Chief executive Stuart Burnett spent £350,000 at 703.4p, while chief financial officer Nick Schoenfeld purchased shares worth £200,000.
Two other non-executive directors made smaller trades.
Bank of America reduced its price target from 2,103p to 900p following the strategy shift.
The bank noted that the utility firm has a record-low forward valuation multiple of 8.2 times forecast earnings and expressed heightened caution regarding the £55 million annual investment required for the five-year plan.
"At this stage we adopt heightened caution given the scale of the investment, the increased competitive dynamics and long dated nature of any margin turnaround - unlikely to be reported until the first half of the 2028 financial year," stated Bank of America.
Financial firm Berenberg also cut its price target from 2,600p to 1,200p.
The firm noted that Telecom Plus must now defend its market position against aggressive rival pricing.
"Telecom Plus now enters a significant investment programme to protect its competitive moat against aggressive pricing strategies from its competitors in the energy and broadband markets," stated Berenberg.
Berenberg maintained that the strategy remains appropriate despite the immediate financial impact.
"Ultimately, we believe this is the right strategic direction for the business, albeit one that comes at a significant and surprising cost, and delivery of the plan will be key to driving share price performance," added Berenberg.
Separately, two non-executive directors of Chemring Group purchased shares worth £250,000 on Friday after the defense firm experienced a 15 percent stock price decline over two months.
Chair Tony Wood bought shares worth £200,000 at 473p, while Alpna Amar purchased a holding worth £47,400.
The acquisitions occurred despite Chemring reporting a record £1.4 billion order book earlier in June.
Chief executive Michael Ord explained that geopolitical factors continue to support long-term defense expenditures.
"Elevated defence and national security spending is increasingly seen as a structural feature of the geopolitical environment, rather than a temporary response to current conflicts and regional tensions," said Ord.
The defense firm expects a return to standardized order levels following recent domestic delays related to the Defense Investment Plan.
"Across NATO, planning assumptions have shifted towards territorial defence and peer-conflict readiness, supporting structurally higher budgets," added Ord.
