Jun 24, 2022
Directors’ Deals: Asos board buys in as shares hit decade-low
Multiple board members at Asos recently sensed a buying opportunity, after a profit warning caused the fast fashion seller's shares to drop in value by one third in a single day. Liberum slashed its target price from £15 to £9 per share, saying that a raft of issues including a more cautious consumer, potential over-stocking, and the reopening of physical retail spelled bad news for Asos. Non-executive directors Jørgen Lindemann and Patrick Kennedy bought £490,000 and £240,000 worth of shares respectively. The directors' purchases looked timely as shares appreciated by 13 per cent on June 17, a day after the purchases were made. The company then announced a placing on June 15 at 140p a share - at a 9 per cent discount to the previous day's close - through which existing shareholders sold a further £39mn stake and a further £7.5mn of new shares were issued.
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