Insider: bosses bet shares will bounce from multi-year low

Three Card Factory (LSE:CARD) directors have spent £65,000 on 7% yielding investments after a profit warning left the retailer’s shares trading in “deep value” territory.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

Chief executive Darcy Willson-Rymer led the buying with a purchase worth £40,000 at 70.3p, the cheapest price in over three years. He was joined by finance chief Matthias Seeger and non-executive director Robert McWilliam as they spent £15,000 and £10,000 respectively.

Their dealings took place a few days after the greetings card retailer cut its adjusted profits forecast for the year to January to between £55 million and £60 million, which compared with City forecasts of £70 million prior to the update.

Card Factory said: “Over recent months, the pressures facing the UK consumer have been well publicised. It is an inescapable fact that these pressures have impacted consumer confidence and shopping behaviour, contributing to soft high street footfall.

“Those conditions have persisted as we moved into our most important trading period, leading to a UK store sales performance which is lower than our previous expectations.”

City firm Berenberg cut its price target from 150p to 110p, noting a valuation of 5.4 times 2027’s forecast earnings and a dividend yield of 7.2%.

It said: “Unlike other commentators in the market, we do not believe Card Factory’s profit warning has halved the group’s worth, and the shares continue to offer deep value, in our view.”

• Shares for the future: what 2026 might hold for this top 5 stock
• Stockwatch: four retail shares - here’s my pick of the bunch

That said, the bank believes it will take time for investors to regain confidence.

This will require a return to positive earnings momentum, driven by sustained store like-for-like sales growth, a step-up in contribution from international and partnership operations and faster online growth following the Funky Pigeon acquisition from WH Smith.

The bank said that footfall patterns can often be volatile, which adds to its belief that this will not prove to be a permanent issue for Card Factory or a sign that the group’s value-focused offer has lost its resonance with customers.

UBS, which cut its price target from 170p to 120p, said it was significant that the profit warning did not mention any new cost surprises in the wake of November’s Budget.

The bank said: “We retain our view on Card Factory as a deep discount stock offering resilient growth and strong cash generation and remain Buy.”

Card Factory confirmed that its capital allocation policy is unchanged, with the share buyback programme ongoing and a progressive full-year dividend expected. On the day of the profit warning, it paid shareholders a 4.9% higher interim dividend of 1.3p a share.

• How the pros would invest a £1 million windfall
• The tariff playbook: why I’m sticking with UK markets in 2026

The group has more than 1,100 stores in the UK and Ireland, with its in-house design and manufacturing operations seen as giving it a competitive advantage.

Partnerships are a key part of its growth strategy while it has exposure in South Africa and the Middle East alongside a supply agreement covering stores across the US.

Last year’s acquisition of Minnesota-based Garven gave the Wakefield-based firm a physical presence in the world's biggest celebration occasions market worth $70 billion.

The shares were 143p in September but have come under pressure due to substantial increases in the National Living Wage plus freight inflation and phasing of strategic investments.

Serica Energy

The boss of Serica Energy (LSE:SQZ) has backed up his company’s major acquisition of assets in the southern North Sea by spending £108,000 on shares.

Chris Cox said the £57 million transaction, which includes a 15% interest in the Cygnus field, added over 15% to Serica’s reserves and significantly boosted production.

He added: “These are also assets I personally know well, and the Cygnus field in particular is an attractive addition to our portfolio given its high uptime, low emissions, and low operating costs.”

The acquisition from Spirit Energy, which is majority owned by Centrica, is expected to generate $100 million (£74.7 million) of free cash flow by the end of 2028. Serica said this will support and enhance its strategy of investing for growth and delivering attractive shareholder returns.

The deal and subsequent investment by the chief executive failed to bolster the company’s shares, which have fallen from 219p in early November to 167p on Friday. Cox bought at 169.9p.

• Watch our video: Bargain shares on offer in the UK and beyond
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Serica, which owes its scale to the Bruce, Keith and Rhum assets acquired from BP in 2018, has been impacted by downtime and maintenance outages over recent months.

This left production at 25,700 barrels of oil equivalent a day in the first nine months of 2025, compared to November's average of 50,300 that it said more accurately reflected the potential of its portfolio.

It added in last month’s trading update that the Budget was a “missed opportunity to kick-start investment across the UK North Sea”.

Serica remains committed to moving from AIM to the main market, which it will seek to do at the “earliest viable opportunity in 2026”. With a market value of £662 million, the company is large enough for inclusion in the FTSE 250 index.

On Friday, Panmure Liberum increased its price target to 295p after updating its forecasts to include the new assets.