Burberry Group (LON:BRBY) Trading Down 7.1% - What's Next?

Key Points

• Burberry Group's stock price has dropped by 7.1% to GBX 1,181.96 ($15.99), significantly lower than its previous closing price of GBX 1,272 ($17.21).
• Analysts have mixed ratings for Burberry, with Deutsche Bank maintaining a "hold" rating and a target price of GBX 1,000, while HSBC and Citigroup issued a "buy" rating with higher target prices of GBX 1,600.
• Insider trading activity has increased, with two insiders purchasing shares recently, indicating confidence in the company's future despite the recent stock decline.

Burberry Group plc (LON:BRBY - Get Free Report) traded down 7.1% on Tuesday . The stock traded as low as GBX 1,152.50 ($15.59) and last traded at GBX 1,181.96 ($15.99). 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 ($17.21).

Analyst Upgrades and Downgrades

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

Burberry Group Stock Down 7.1%

The stock has a fifty day simple moving average of GBX 1,245.76 and a two-hundred day simple moving average of GBX 1,021.93. The firm has a market cap of £4.25 billion, a PE ratio of -5,655.29, 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.

Insider Buying and Selling

In other news, insider Kate Ferry bought 3,228 shares of the stock in a transaction on Friday, June 27th. The shares were acquired at an average cost of GBX 1,100 per share, for a total transaction of £35,508. Also, insider Joshua Schulman purchased 29,744 shares of the business's stock in a transaction on Friday, June 27th. The stock was purchased at an average cost of GBX 1,069 per share, with a total value of £317,963.36. In the last 90 days, insiders have bought 34,180 shares of company stock valued at $36,837,808. Company 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.

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