2iQ Insider Brief: DART GROUP (DTG:LN)

Robert Hable 16 July 2020

Dart Group (DTG: LN)

12-month performance: -9%
Insider activity: Bearish
Selling pattern: Large sales from Chairman
Recent news: Issued full-year results

Dart Group is a UK-based leisure travel company. Through its two brands, Jet2.com and Jet2Holidays, the company offers flights and holiday packages to holiday destinations across Europe, the Canary Islands, and the Mediterranean. It is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £1.2 billion.

Dart Group recently issued an impressive set of full-year results for the year ended 31 March 2020. In what was a record year for the Group, profit before hedge ineffectiveness, FX revaluation, and taxation from continuing operations increased by 50% to £264.2 million. However, looking ahead, the group said it faces challenges as a result of the Covid-19 pandemic. It advised that group performance for the financial year ending 31 March 2021 will be largely dependent on the level of flying permitted for the remainder of the summer 2020 period, as well as performance in the second half of the 2021 financial year, both of which it currently has limited visibility on.

Screenshot_5    Source: 2iQ Research

What stands out to us about Dart Group is that last week, Founder and Executive Chairman Philip Meeson sold a substantial number of shares. According to our records, the insider sold a total of 750,000 DTG shares, generating proceeds of £5.1 million. Given the magnitude of this sale, and the fact that the environment for airlines and tourism companies is likely to remain challenging in the near term due to Covid-19, we think caution is warranted towards Dart Group shares at present.

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