Burberry Group (LON:BRBY) Stock Price Down 7.1% - Here's Why

Key Points

• Burberry Group's shares experienced a significant decline of 7.1%, closing at GBX 1,181.96 ($16.01) after trading as low as GBX 1,152.50 ($15.61).
• Despite the share price drop, several analysts maintain a consensus rating of "Moderate Buy" with a target price of GBX 1,350, indicating potential for recovery.
• Insider transactions showed confidence in the company, with executives purchasing over 34,180 shares valued at nearly $36.8 million in the past ninety days.

Burberry Group plc (LON:BRBY - Get Free Report)'s stock price traded down 7.1% during mid-day trading on Tuesday . The company traded as low as GBX 1,152.50 ($15.63) and last traded at GBX 1,181.96 ($16.03). 1,956,127 shares traded hands during trading, a decline of 68% from the average session volume of 6,175,073 shares. The stock had previously closed at GBX 1,272 ($17.25).

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. HSBC reaffirmed a "buy" rating and set a GBX 1,600 target price on shares of Burberry Group in a report on Tuesday, September 2nd. Citigroup lifted their target price on Burberry Group from GBX 1,250 to GBX 1,600 and gave the stock a "buy" rating in a report on Monday, July 28th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a GBX 1,000 target price on shares of Burberry Group in a report on Monday, July 21st. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Burberry Group presently has an average rating of "Moderate Buy" and an average price target of GBX 1,350.

Burberry Group Price Performance

The company has a current ratio of 1.66, a quick ratio of 1.63 and a debt-to-equity ratio of 136.53. The firm has a market cap of £3.97 billion, a price-to-earnings ratio of -5,287.08, a price-to-earnings-growth ratio of 1.66 and a beta of 1.06. The stock has a 50-day moving average of GBX 1,238.74 and a two-hundred day moving average of GBX 1,023.73.

Insider Activity at Burberry Group

In related news, insider Kate Ferry purchased 3,228 shares of the firm's stock in a transaction that occurred on Friday, June 27th. The stock was acquired at an average price of GBX 1,100 per share, for a total transaction of £35,508. Also, insider Joshua Schulman purchased 29,744 shares of the firm's stock in a transaction that occurred on Friday, June 27th. The stock was bought at an average price of GBX 1,069 per share, with a total value of £317,963.36. Insiders purchased 34,180 shares of company stock worth $36,837,808 in the last quarter. 0.63% of the stock is owned by company insiders.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags.