Corporate executives and directors have the most up-to-date information on their companies' operations and finances. If these insiders are buying company stock, it’s generally a bullish signal.
In this report, we are going to highlight some interesting insider buying at Hugo Boss AG (BOSS:GR). Hugo Boss is a luxury fashion brand that sells clothing, footwear, accessories, and fragrances. Last year, it generated sales of €1.9 billion. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €3.3 billion.
Hugo Boss: Insider Buying
Our insider transaction data shows that in May, three top-level insiders at Hugo Boss purchased stock. On 7 May, Chief Sales Officer Oliver Timm purchased 16,499 shares at a price of €42.30, spending just under €700,000 on the stock. Then, on 14 May, Chairman Hermann Waldemer bought 5,000 shares at a price of €41.27 per share, spending €206,000 on the stock. Finally, on 21 May, Supervisory Board member Katharina Herzog picked up 1,500 shares at a price of €45.32 per share, spending about €68,000 on the stock. Combined, these three insiders spent just under €1 million on BOSS stock during the month.
Hugo Boss Insiders Are On Fire
Insiders at Hugo Boss have made a number of well-timed purchases over the last year. In September, for example, CFO Yves Mueller purchased stock when it was trading at €21. Since then, the stock has risen around 125%.
Then, in December, both Mueller and Supervisory Board member Luca Marzotto purchased stock near the €26 level. Since then, it has risen about 80%.
More recently, in March, Mueller and Marzotto added to their holdings near the €35 level. Since then, the stock is up about 35%. Clearly, insiders at Hugo Boss have a good read on the stock right now.
Hugo Boss’ first-quarter results were very encouraging, given the challenges the company has faced throughout Covid-19. Highlights of the results included:
- Online sales growth of 72%
- Sales growth of nearly 100% in mainland China
- Mid-single-digit growth in casual wear sales
- Positive EBIT of €1 million (analysts had been expecting negative EBIT)
- Group sales growth of -8% on a currency-adjusted basis to (much better than the guidance of ‘up to a 20% decline')
Looking ahead, management seemed to be confident that the company will continue to recover as the pandemic subsides.
“Despite ongoing implications of the pandemic, especially in Europe, we have seen a solid and promising start into the year,” said CFO Yves Müller. “We expect both sales and EBIT to recover noticeably in the further course of 2021,” he added.
In light of these results, we see the insider buying here as bullish. It suggests that the insiders expect BOSS stock to keep rising.