Continuing our new blog series, in which we look back at prior 2iQ insider trading reports to see how the business’ stock price has performed, we’re returning to our report on Hugo Boss AG (BOSS:GR) from December 2020.
Why Is It worth Tracking the Stock Prices from Insider Trades?
2iQ Research regularly publishes reports on significant insider buying activity.
Insiders not only have real-time information about their companies, but they also have a wealth of expertise and knowledge that can help them understand a company's potential.
Looking back on insider activity is a simple yet effective way of evaluating the value of insider trades, while also allowing us to see whether an investor’s trading IQ lives up to expectation.
Hugo Boss Insider Trading Activity
Hugo Boss is a German clothing brand known worldwide: it’s listed on Deutsche Börse Xetra, with a market capitalization of €1.9 billion.
In December 2020, 2iQ reported on the bullish investment activity of a major Hugo Boss insider:
- Chief Financial Officer, Yves Marc Mueller purchased shares on two occasions: on the 16 November 2020, the CFO purchased 2,000 at €25.00, then again on 2 December 2020 he bought 2,800 shares at €25.87. In total, Mr. Mueller spent around €122,000 on the BOSS stock.
There are multiple reasons this investment activity was interesting. Firstly, this was a sizeable investment not only in size, but also for Mr. Mueller’s portfolio of BOSS shares. It raised his holdings from 6,000 shares to 10,800 – an 80% increase.
Another indicator of the insider’s trading IQ was his last well-timed purchase in September 2020, which 2iQ Research reported on, when he purchased €63,000 worth of stock that rose in value 30% by December that same year. This would have raised his share value at the time to around €81,900, a profit of €18,900.
How Is the Stock Performing Now?
Hugo Boss’ increasing value was visible in December 2020 and has only continued to rise as of October 2021. When the insider purchased shares, the stock’s price was at around €25, having doubled in value to €51.22 at the time of writing. That’s more than a 100% increase in value.
To better illustrate Hugo Boss’ rising value, we can look at how Yves Marc Mueller’s share value has grown since we last reported on his activity.
He purchased 4,800 shares between 16 November and 2 December 2020, when BOSS was valued at around €25, which has seen a 104% increase in value. This would value his investment at around €248,800, a profit of nearly €126,880.
Hugo Boss has experienced a visible recovery from Covid-19, which can in part be attributed to an increase in online sales that saw hugoboss.com record a currency-adjusted growth of 46% in H1 2021, as well as improved consumer sentiment moving out of the pandemic.
Insiders who bought shares at the opportune moment had the insight and expertise to do so, confirming our assessment in December that this was a bullish signal.
For more retrospectives on 2iQ’s insider buying reports, check out the 2iQ blog.