Insider: FTSE 100 chief buys big for second time in two weeks

The dumping of Berkeley Group Holdings (The) (LSE:BKG) shares in last week’s market volatility drew a strong response from its chief executive after he upped his stake for the second time in a fortnight.

The £100,000 buy-the-dip move of Rob Perrins took place on Wednesday at a price 3,571p, having also spent £500,000 at 3,846p after the release of annual results on 20 June.

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Berkeley shares were the worst hit in the housebuilding sector as gilt yields jumped in the wake of the chancellor’s tearful appearance at Prime Minister’s Questions.

Rachel Reeves has been a staunch defender of the government’s fiscal rules, which is why bond markets reacted strongly to speculation over her future in the role.

Berkeley shares ended the week at 3,586p, which is below where they finished on Wednesday after the spike in borrowing costs triggered a fall of 8% or 308p to 3,600p. Persimmon also ended the midweek session 7% lower and Barratt Redrow down 5%.

The brownfield regeneration specialist has fallen 17% since trading at 4,324p in the run up to the annual results, which included guidance for lower profits of about £450 million in the current financial year and the one after.

Profits for 2024/25 were £528.9 million, which Perrins described as an excellent performance in the face of volatile trading conditions and regulatory headwinds.

He said that the company had also added long-term value, both through land holdings and its new build-to-rent platform. It also returned £381.5 million to shareholders at the start of the Berkeley 2035 strategy announced in December.

Alongside the results, Berkeley said Perrins is relinquishing the role he has held since 2009 in order to become executive chair. He will be replaced as chief executive by Richard Stearn.

The finance boss, who joined the business in 2015, also bought shares after the results when he made an investment worth £270,000 at a price of 3,866p.

Analysts at Berenberg believe the shares deserve to be at 5,000p, having cut their price target from 5,500p on the back of a 2% cut to 2026-27 earnings per share forecasts.

They acknowledged that the Berkeley investment case faced headwinds but that shares were a “compelling proposition” over the medium term.

The bank said: “We think that Berkeley’s position as a developer of large, complex urban regeneration schemes presents significant growth opportunities, while its margin resilience in recent years illustrates its financial discipline.

“Moreover, we highlight the potential for the company to return 5-8% of its market capitalisation per year over the next decade, while still growing its tangible net asset value per share.”

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Counterparts at Peel Hunt have an Add recommendation and 4,400p target price, believing that short-term weakness offers a good opportunity for longer term investors.

The bank said following the results: “While disappointing to see guidance lowered, it is not hugely surprising given the trickier market conditions in London and the South East.

“However, the group’s long-term credentials are unchanged, with a sector-leading land bank and capital discipline.”

Backing new scientific breakthroughs

FTSE 250-listed Oxford Instruments (LSE:OXIG) finished last week on the front foot after it emerged that chief executive Richard Tyson had spent a total of £150,000 increasing his stake.

The shares spiked following the disclosure on Wednesday afternoon of dealings by Tyson at a price earlier that day of 1,922p, as well as on Tuesday at 1,874p.

Oxford’s shares closed the week at 2,005p, representing a continuation of the recovery from mid-April’s four-year low at near to 1,500p.

Recent gains have been underpinned by a robust set of annual results on 13 June and an agreement to sell NanoScience, the group’s quantum business in a move that has meant the launch of a £50 million share buyback programme.

Tyson, who ran TT Electronics before taking his current role in October 2023, said the sale was in line with a strategy to focus and invest in the best areas of opportunity.

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The group, whose imaging, analysis and fabrication tools accelerate new scientific breakthroughs, registered revenues of more than £500 million for the first time in the results.

This followed strong growth in semiconductor and materials analysis as operating profit rose 10.8% to £82.2 million on an improved margin of 17.8%.

A final dividend of 17.1p a share is due to be paid on 19 August, increasing the total for the year by 6.7% to 22.2p amid good visibility for revenue in the year ahead.

Deutsche Bank highlighted a price target of 2,550p following the results, while Peel Hunt lowered to 2,400p as a result of currency headwinds and the impact of the disposal.

The latter said: “We continue to view growth prospects as compelling – particularly in Advanced Technologies. What has become clearer is the potential for operational improvements towards the mid-term margin target of more than 20%.”