FNG Exclusive… FNG has learned via regulatory filings that IG Group Chairman Mike McTighe, and CEO June Felix (pictured above) each made market purchases of company stock last Thursday for their personal accounts.
IG shares (LON:IGG) took a dive on Thursday, following the release of full year fiscal 2020 results (IG has a May 31 fiscal year end). The company reported the best six-month stretch in its history for the November 2019 to May 2020 semi-annual period, but apparently the good news had already been “baked in” to the company’s share price following IG’s trading update made in early June.
What seemed to have put off investors was management’s less than stellar outlook for FY21. Although its seems that activity into June and July (the first two months for IG in fiscal 2021) continued strong, IG had noted that its targets remain unchanged for revenue growth in Core Markets of 3-5% over the medium term. And, that it anticipates a reversion to more “normalised levels of market volatility” during the course of FY21.
Investors seemed to focus more on the lukewarm outlook than the record historical number being reported, and sent IG stock tumbling by 11% last Thursday, from Wednesday’s close of 833.5p to close Thursday at 743p.
Both Mr. McTighe and Ms. Felix took advantage of the lower share price to buy in more shares. Mike McTighe purchased Thursday 3,500 IG shares at £7.407 each, for a total outlay of £25,924.85. June Felix acquired 6,200 in a series of purchases averaging £7.429, for a total cost of £46,061.08.
We’d note that Thursday (June 23) was the first day that either Mr. McTighe or Ms. Felix were allowed to buy IG shares since late May, due to a blackout rule on insider purchases of stock from near period end until after results are released to the public. We don’t know if either Mr. McTighe or Ms. Felix had planned to buy some IG shares prior to the share price dip, but clearly they are both “putting their money where their mouth is” in buying more shares.
Both purchases look to be so far “in-the-money”, with IG stock recovering somewhat to 771p in late Monday morning LSE trading.
IG shares, past five days. Source: Google Finance.