2iQ Insider Brief: ASOS PLC (ASC: LN)

Kaloyan Kolev 7 February 2020

ASOS PLC (ASC: LN)

 12-month performance: 5%
Insider activity: Bullish
Buying pattern: Purchase from CEO
Recent news: Christmas sales topped estimates

 

 ASOS is an online fashion retailer. Headquartered in the UK, the group operates country-specific clothing websites in the UK, US, Australia, Germany, Spain, France, and Italy and sells over 85,000 branded and own-label products. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £2.6 billion.

We last covered ASOS in late July when the stock was trading at around 2,400p. At the time, the company was out of favour with investors because it had just issued a profit warning, however, we noticed that both Chairman Adam Crozier and CEO Nicholas Beighton had recently acquired more shares – a bullish signal. Fast forward to today, and the stock is up around 35% since our last article, on the back of solid full-year results in October and a strong performance over Christmas. As is often the case, the insider purchases were timed well.

ASC_LN-1Source: 2iQ Research

Looking at insider transaction activity, we think it’s interesting that CEO Nicholas Beighton has just made another purchase here. Records show that on 29 January, the insider acquired another 1,629 shares at a share price of 3,060p. Given Beighton’s track record when it comes to timing his purchases, we see this buy as another bullish signal. With the company having recovered from the operational issues it experienced last year, and the CEO buying more shares, we believe the stock has the potential to keep rising. 

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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