«Watches of Switzerland Directors Invest £890,000 in Company Stock»
In a resounding display of confidence, directors at Watches of Switzerland Group Plc have recently invested a substantial £890,000 (equivalent to approximately $1.1 million) in the company’s stock. This strategic move comes on the heels of a temporary dip in the firm’s share value, triggered by Rolex SA’s announced acquisition plans for luxury retailer Bucherer AG, which significantly affected the London-listed watch retailer.
The directors who participated in this stock acquisition include Chief Financial Officer Anders Romberg, Chairman Ian Carter, and non-executive directors Tea Colaianni and Robert Moorhead. Their collective purchase amounted to over 150,000 shares in a single trading day, as documented in filings submitted to the London Stock Exchange.
A spokesperson representing Watches of Switzerland underscored the significance of these directorial stock purchases. They affirm that the board’s decision reflects their unwavering belief in the company’s strategic direction and long-term growth potential. This investment serves as a clear response to concerns raised in the wake of Rolex’s announcement and its subsequent impact on the company’s share price.
Following the news of these director-driven acquisitions, Watches of Switzerland’s shares experienced a notable upswing, surging over 4% during intraday trading. This noteworthy performance outpaced the UK midcap FTSE 250 Index, signaling a positive market reaction to the directors’ display of confidence.
The decision to invest in the company’s stock comes amidst a period of uncertainty prompted by Rolex’s announcement. Analysts had expressed apprehension about potential changes in Rolex’s watch supply distribution, with a possible shift towards favoring Bucherer over third-party retailers like Watches of Switzerland.
In response to Rolex’s announcement, certain investors, including Abrdn Plc headquartered in Edinburgh, opted to divest their holdings in Watches of Switzerland. This led to a temporary decrease in the company’s stock price. Despite the recent rebound, the stock continues to trade at more than a 10% discount to its pre-announcement levels, underscoring the lingering impact of the proposed deal on market sentiment.