We take a look at directors buying and selling shares in their own company in our regular column.
- Burberry Chair buys shares
- Non-exec buys BP shares
- Wizz Air non-exec buys shares
Here’s why Director Dealings can play an important role in stock-picking
Burberry Chair buys shares
Burberry LON:BRBY Chair and Non-Executive Director, Dr Gerard Martin Murphy purchased 5,000 shares in the Company last week at an aggregate price of 1563p per share for a total consideration of £78,150. The luxury clothing retailer reported half year results last week citing a global slowdown in luxury demand impacting current trading and suggesting that if this trend persists, Burberry is unlikely to meet its revenue forecast of low double-digit growth for the current financial year. The also noted that it anticipates that adjusted operating profit for the fiscal year will be towards the lower end of the current consensus range of £552 million to £668 million ($683.49 million to $827.12 million).
The luxury sector is facing challenges as even higher-end consumers are tightening their belts. Analysts suggest there could be further pressure before improvement, especially if a broader pullback in spending occurs in 2024 after the festive trading season.
Burberry shares were trading at 1565.50p at the time of writing, down 24.3% this year and down 24.7% over the last 12 months.
Non-exec buys BP shares
BP LON:BP. Non Executive Director, Satish Pai purchased 2,000 American Depositary Shares (ADSs), each representing 6 ordinary shares at a cost of $35.55 per ADS for a total consideration of $71,100. The British oil giant reported quarterly profits of $3.3 billion last month, which fell short of analysts’ expectations of $4 billion. This was down to a substantial drop in energy prices compared to the previous year. Despite lower-than-expected profits, BP maintained its dividend at 7.27 cents per share and extended a $1.5 billion share buyback program over the next three months. The company also projected an annual capital expenditure of $16 billion, which is at the lower end of the indicated range of $16 billion to $18 billion.
Our AI powered data from Bridgewise rates BP as a ‘Buy’.
BP shares were trading at 474.55p today, down 1.8% this year and up 3.6% over the last 12 months.
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Wizz Air non-exec buys shares
Wizz Air LON:WIZZ Non Executive Director, Enrique Dupuy de Lome, purchased 1,421 shares in the company this week at a price of 1,877p for a total consideration of £26,672. The Eastern European low cost airline published results for the six months to September 30th earlier this month. It saw passenger numbers up 25%, revenues added almost 40% and operating profits exceeded EUR500m. In terms of the outlook, management still see more room for growth eyeing increased load factors and lower costs per km.
Wizz Air shares were trading at 1,895p today, down 0.2% this year and down 14.8% over the last 12 months.
