The share price of UK-based retailer Watches of Switzerland Group (GB:WOSG) gained over 6% after the directors bought shares in the company. The insiders of the company, including the CFO, Chairman, and two other directors, acquired shares worth £0.89 million ($1.1 million) last week on Friday.
Watches of Switzerland (WoS) is a global retailer of top-tier luxury watch brands such as Rolex, Cartier, Chopard, Hamilton, Longines, and many more. Approximately 50% of its sales are generated from Rolex timepieces.
The insider trading was in response to the decline in the company’s share price triggered by Rolex SA’s intentions to purchase luxury retailer Bucherer AG. The company stock came under pressure after the Rolex acquisition news, and it tumbled around 20%, leading to panic among investors. As a result, the four directors have demonstrated their faith in the company by purchasing shares.
Insider Transactions
According to the filing, the company’s CFO, Anders Romberg, acquired 100,000 shares at a price of 585p, while Chairman Ian Carter purchased 35,000 shares at prices varying from 582.5p to 589.5p. Along with them, directors Teresa Colaianni and Robert Moorhead also acquired around 8,500 shares each. All of these transactions were informative Buy, as these insiders opted to invest personal capital in acquiring these shares. These transactions hold considerable significance as they manifest the insider’s strong belief in the company and its future prospects.
Based on the purchases of these corporate insiders, TipRanks’ Insider Trading Activity signal is very positive for the company.
The TipRanks Daily Director Deals tool provides insights into recent insider trading activities within specific markets, offering a chronological record of insiders’ share purchases and sales, accompanied by additional information. TipRanks also offers a compilation of the top corporate insiders and a selection of high-performing stocks endorsed by either a very positive or positive insider confidence signal.
What is the Price Target for WOSG?
According to TipRanks’ analyst consensus, WOSG stock has a Strong Buy rating, based on five Buy and one Hold recommendations.
These ratings were assigned before the acquisition news and are subject to further changes. Currently, analysts are cautious about the possibility that Rolex might increase its supply of watches to Bucherer and reduce its distribution to retailers like Watches of Switzerland, impacting its sales.
The WOSG share price target is 935p, which has an upside potential of 54% on the current price level.
Conclusion
When insiders invest in the company’s shares, it generally means they have useful information and are upbeat about the stock’s performance. Insider trading could be a valuable resource for investors who can use it to their advantage.
