Burberry Group (LON:BRBY) Stock Price Down 7.1% - Should You Sell?

Key Points

• Burberry Group's stock price dropped by 7.1%, closing at GBX 1,181.96 ($16.01), significantly lower than its previous close of GBX 1,272 ($17.23).
• Analysts from Citigroup and HSBC have set price targets for Burberry at GBX 1,600, maintaining a "buy" rating, while Deutsche Bank has a "hold" rating with a target of GBX 1,000.
• Recently, insiders purchased a total of 34,180 shares of Burberry stock worth approximately $36.8 million over the last three months, indicating possible confidence in the company's value.

Burberry Group plc (LON:BRBY - Get Free Report)'s share price was down 7.1% during mid-day trading on Tuesday . The company traded as low as GBX 1,152.50 ($15.60) and last traded at GBX 1,181.96 ($16.00). Approximately 1,956,127 shares changed hands during trading, a decline of 68% from the average daily volume of 6,175,073 shares. The stock had previously closed at GBX 1,272 ($17.22).

Analyst Upgrades and Downgrades

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

Burberry Group Price Performance

The stock's fifty day moving average price is GBX 1,244.05 and its two-hundred day moving average price is GBX 1,022.97. The firm has a market capitalization of £4.09 billion, a price-to-earnings ratio of -5,447.37, a price-to-earnings-growth ratio of 1.66 and a beta of 1.06. The company has a current ratio of 1.66, a quick ratio of 1.63 and a debt-to-equity ratio of 136.53.

Insiders Place Their Bets

In other Burberry Group news, insider Joshua Schulman acquired 29,744 shares of the stock in a transaction on Friday, June 27th. The shares were bought at an average cost of GBX 1,069 per share, with a total value of £317,963.36. Also, insider Kate Ferry bought 3,228 shares of the stock in a transaction dated Friday, June 27th. The stock was purchased at an average cost of GBX 1,100 per share, for a total transaction of £35,508. In the last three months, insiders have acquired 34,180 shares of company stock valued at $36,837,808. Insiders own 0.63% of the company's stock.

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.