Directors across the UK property industry rushed to buy shares in their own companies in the face of a market downturn after the Brexit vote.
However, currently only four of the 13 biggest spenders have seen their shares rise since their purchases. The biggest losses by the close of Tuesday 5 July came from those who bought shares on 24 June with prices continuing to fall on June 27 after the Brexit weekend.
Danny Cox, a chartered financial planner at Hargreaves Lansdown, said: “If directors are buying shares in their own company, that’s a good indication that they feel positive about the future of their company. It’s suggesting that they think the share price is good value and they may believe it’s been oversold.”
The biggest buyers came in the residential sector.
As prices plummeted on 24 and 27 June, Tony Pidgley, founder and chairman of Berkeley Group, bought nearly £800,000 worth of shares, making over £30,000 when values rose again.
Greg Fitzgerald, chairman of Galliford Try, spent £694,527 on his company’s shares when they fell 34%.
The value of those shares had risen £16,203 by 4 July before falling to £661,440 yesterday – a loss of 4.8%.
Meanwhile, John Burns, chief executive of Derwent London, sold 45,000 shares in his company a day before the vote for £1,488,375.
As of close on Monday, those shares would have been worth £382,725 less than when Burns sold them.
Cox said: “I suspect that somebody selling shares the day before the referendum probably thought, ‘Just in case, if the referendum goes the wrong way, that’s likely going to have an effect on our share price. I’m going to get a better price today than I will in two days’ time.’ That has proved the case.”
Here are the companies whose directors spent the most on their own shares along with the biggest individual spenders in each firm, the value of the shares they bought at the time, and their value as of close on 4 July:
Berkeley Group – £986,034 spent
Tony Pidgley, founder and chairman – 35,061 shares, 27 June
• Initial value: £795,534
• Value on 5 July: £826,682
• Change: 3.9%
Glyn Barker, non-executive director – 2,000 shares, 24 June; 3,000 shares, 27 June
• Initial value: £119,260
• Value on 5 July: £117,850
• Change: -1.2%
Veronica Wadley, non-executive director – 1,000 shares, 29 June; 1,000 shares, 30 June
• Initial value: £47,500
• Value on 5 July: £47,140
• Change: -0.8%
Galliford Try – £705,243 spent
Greg Fitzgerald, chairman – 79,500 shares, 27 June
• Initial value: £694,527
• Value on 5 July: £661,440
• Change: -4.8%
Savills – £462,710 spent
Michael Colacino, president – 50,000 shares, 27 June
• Initial Value: £305,000
• Value on 5 July: £287,500
• Change: -5.7%
Nicholas Ferguson, chairman – 15,000 shares, 27 June
• Initial value: £88,099
• Value on 5 July: £86,250
• Change: -2.1%
Rupert Robson, independent non-executive director – 7,981 shares, 24 June
• Initial value: £49,730
• Value on 5 July: £45,891
• Change: -7.7%
Derwent – £256,345 spent
David Silverman, director – 4,256 shares, 28 June
• Initial value: £99,999
• Value on 5 July: £104,570
• Change: 4.6%
Damian Wisniewski, finance director – 4,256 shares, 28 June
• Initial value: £99,986
• Value on 5 July: £104,570
• Change: 4.6%
Simon Fraser, non-executive director – 2,000 shares, 24 June
• Initial value: £56,360
• Value on 5 July: £49,140
• Change: -12.8%
CLS Holdings – £142,097 spent
Sten Mortstedt, executive chairman – 5,736 shares, 27 June; 4,264 shares, 28 June
• Initial value: £129,086
• Value on 5 July: £132,500
• Change: 2.6%
Kennedy Wilson Europe Real Estate – £92,552 spent
Simon Radford, independent non-executive director – 9,200 shares, 24 June
• Initial value: £92,552
• Value on 5 July: £83,661
• Change: -9.6%
Intu Property – £84,350
John Whittaker, deputy chairman – 23,971 shares, 28 June
• Initial value: £63,852
• Value on 5 July: £63,763
• Change: -0.1%
