CEOs tend to have a deep level of insight into their companies’ operations and financials. If they’re buying company stock, it’s generally a sign that business performance is strong and that the outlook for the stock is attractive.

In this report, we are going to highlight a large CEO stock purchase at Hugo Boss AG (BOSS:GR). Hugo Boss is a global fashion and lifestyle company that sells clothing, footwear, accessories, and fragrances. Headquartered in Germany, it operates in over 100 countries worldwide. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of approximately €4.42 billion.

Insider Buying at Hugo Boss

2iQ data shows that on February 6, CEO Daniel Grieder purchased 24,000 BOSS shares at a price of €62.10 per share. This trade cost the insider around €1.49 million and increased his holding to 123,000 shares.

Aggressive Buying Pattern

Mr. Grieder has been aggressively buying company stock recently.

Back in January, we noted that the insider had purchased 18,000 BOSS shares at an average price of €55.94 per share. This trade cost the insider around €1 million. He also purchased 10,000 shares in November 2022 at an average price of €46.94 per share. This trade cost the insider around €470,000.

So in the space of just a few months, he has increased his holding from 71,000 shares to 123,000 shares – an increase of 73%. This suggests that he is very confident the stock is going to move higher.

Strong Q4 Results

Hugo Boss recently posted solid preliminary full-year 2022 results.

For the final quarter of 2022, currency-adjusted group sales were up 15% year on year to €1,068 million. This was the first time that quarterly sales exceeded the €1 billion mark.

Thanks to the strong performance in Q4, currency-adjusted sales for the full-year 2022 hit a record €3.65 billion, up 27% year on year and ahead of the company’s own guidance (which was upgraded on multiple occasions last year). Operating profit (EBIT) for the year increased 47% to €335 million.

“2022 was truly a record year for HUGO BOSS. Thanks to an exceptionally strong final quarter, we even exceeded our own high expectations,” said Mr. Grieder.

In light of the strong top-line growth the company is generating right now, we see the insider buying as a bullish signal.

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