Insider: buying at FTSE 100 stock where selling is overdone
After slumping to their lowest in 2025 so far, senior management have snapped up a large line of stock in this blue-chip firm. City writer Graeme Evans has the details.
26th August 2025 07:46
by Graeme Evans from interactive investor
Post-results weakness for Beazley (LSE:BEZ) shares has been followed by £350,000 of boardroom purchases after the specialist insurer traded at its cheapest price since January.
- Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts
The FTSE 100 stock dropped by 12% on 13 August after management posted forecast-beating half-year figures but cut premium growth estimates, in line with a strategy of prioritising rate adequacy and long-term profitability over short-term income.
Chief executive Adrian Cox said the pull back was consistent with the nature of the insurance cycle and is “both familiar and something we know how to manage well”.
Berenberg analysts called the market’s reaction overdone and described the risk-reward offered by a valuation of 6.6 times next year’s forecast earnings as “extremely attractive”.
The bank reiterated its target of 1,050p, a level better than June’s record price of 983p following a strong run for the shares from 514p in January 2024.
The stock traded at 793p on Friday afternoon, marking a slight upturn on recent dealings by three of Beazley’s non-executive directors at prices between 776p and 785.9p.
The buyers were former Direct Line finance director John Reizenstein, ex-AIG executive Carolyn Johnson and a person connected to insurance veteran Robert Stuchbery. Board colleague Raj Agrawal also spent about £80,000 on the company’s US-listed shares.
Their support came in the days after results showed a 31% decline in pre-tax profit to $502 million. Despite the decline, the figure placed the cyber and liability insurance specialist and manager of seven Lloyd’s syndicates well ahead of the consensus estimate of $453 million.
The impact of increased competition and a 3.9% total negative rate change meant Beazley reported 2% gross premium growth compared with 6.9% in the first half of 2024.
- Shares for the future: new ranking for this FTSE 100 stock
- Stockwatch: buy the drop in this hot stock?
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
Beazley noted that growth in recent years had been exceptionally strong, supported by a combination of increased exposure and significant rate momentum across many of its lines. However, it added these favourable conditions were dislocated and temporary.
Cyber insurance, which accounts for about 20% of business, fell 6.8% year-on-year in the first half but Beazley said July's US renewals season offered signs that rates were beginning to flatten.
Berenberg said: “We believe that cyber pricing is likely to inflect in the near term, driven by increasing frequency and severity of claims, with Beazley being a beneficiary given its market-leading position.”
Beazley downgraded its 2025 growth guidance of low-to-mid single digits but offset this by highlighting a focus on profitability through a combined ratio in the mid-80s.
Bank of America forecasts a stronger figure of 82.9% this year, calling the company’s “strategic shift” towards margin protection an “in-tune move” given the weakening price backdrop.
It continues to expect a $500 million buyback for 2025-26, giving a total yield of 8.6% that includes dividend income of 2.5% based on the bank’s price target of 1,050p.
On Wednesday, Peel Hunt said it continued to see long-term value in the shares after retaining its Add recommendation with a price target of 900p.
The bank said: “Cycle management is kicking in earlier than we had assumed as Beazley cuts back on exposure growth in 2025.
“Our outlook for a softening pricing cycle has not changed, and better margins boost our underwriting profit estimates for the next four years.”
Making hay
A £20,000 purchase of Hays shares at less than 60p - the lowest price in three decades - has been made by the recruitment firm’s chair in the wake of Thursday’s annual results.
Michael Findlay, who joined the board in January, showed his support after a negative market reaction to a big dividend cut and 66% slide in underlying profits to £32.2 million.
Net fees decreased by 11% to £972.4 million in the year to 30 June, while Hays said trading in July and August offered no sign yet of improved conditions following a three-year downturn.
The board rebased the total dividend from 3p in 2024 to 1.24p in 2025, with the 0.29p for payment on 26 November calculated on three times 2025 pre-exceptional earnings cover.
Its move took into account the uncertain trading outlook as well as the prospect that core dividend cover would have been below the 2-3x target range for a second consecutive year.
UBS, which has retained a Neutral recommendation and price target of 70p, forecast a dividend of 0.48p for the 2026 financial year.
Findlay bought his shares at 59.5p before a recovery helped the FTSE 250-listed stock close the week near to 64p. They were 95p after last August’s annual results.
ii's head of editorial Lee Wild owns Hays shares
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.