Hugo Boss AG (BOSS:GR)
12-month performance: -52%
Insider activity: Bullish
Insider buying pattern: Significant purchase from CFO
Recent news: Tough Q2 trading, online expansion
Top-level insiders such as CFOs tend to have the deepest insight into their own companies’ operations. If these insiders are buying stock, investors should take note.
Here, we are going to flag a large CFO purchase at Hugo Boss AG (BOSS:GR). Hugo Boss is a German designer clothing company that sells its products under the BOSS and HUGO brands worldwide. The company is listed on the Frankfurt Stock Exchange and has a market capitalization of €1.6 billion.
Hugo Boss: insider buying
Regulatory filings show that on 30 September the CFO of Hugo Boss, Yves Marc Mueller, purchased 3,000 BOSS shares at a price of €21.02 per share. This purchase cost the insider approximately €63,000.
Source: 2iQ Research
CFO share purchase is a bullish signal
This CFO purchase looks interesting for a couple of reasons. First of all, the Hugo Boss AG stock has had a significant fall since pushing through the €30 level in early June. Given the access to information an insider gets, this purchase suggests the CFO is spotting signs of a recovery and sees the shares as undervalued.
Secondly, this is a large purchase from the insider, which increases the significance of the purchase. It has increased the size of his holding by 100%.
It’s also worth pointing out that the COO and the Vice Chairman also bought stock earlier in the month.
Online growthHugo Boss produced Q2 results on August 4th and as expected trading was severely impacted by Covid-19. Sales for the first half of the year were down 38% on a like for like basis with the previous year and gross profit was down 43%. Trading is expected to be tough for the rest of the year but there was cause for optimism. The company is increasing focus on its online offering and stated their intention to rollout hugoboss.com to 24 additional markets by August 2020. There should be further commentary on this in early November at Q3 results and after an initial bounce post Q2 results, the shares have pulled back to the level they were trading at in early August.
We see the insider buying here as a bullish signal. It suggests that the CFO views the stock as undervalued at the moment.