Boohoo bosses keep faith, buy shares as price plunges
Boohoo shares have been on a rollercoaster ride this year having hit spectacular highs and several lows. And while they’re at a low point at present following the resignation of the company’s auditor, senior management at the e-commerce fashion giant clearly still see value in the shares.
Co-founder and executive chairman Mahmud Kamani has purchased 300,000 of them, boosting his stake in the company to 12.6%. The purchase came as the shares had fallen around 20% on the auditor news.
The company was valued at £3.2 billion when the markets closed on Tuesday, but that was well below the high it had reach as recently as June before the scandal around its supply chain broke.
The Times reported that CFO Neil Chatto has also bought close to 60,000 shares, with his wife buying almost 6,000, while deputy chairman Brian Small bought 10,000 of them.
It's a relatively safe bet on the part of the executives given how high the share price can climb when the company is free of scandal and other issues. Its shares tend to rise following its results announcements as these have delivered a succession of good news.
The shares were already rising on Wednesday morning as the markets opened with a hefty 4% increase, although this still doesn't go anywhere near to recovering the losses of the past few days.
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