Investors rarely like to see directors making multi-million-pound share sales, and even less so when the shares in question have almost tripled off their 52-week lows. But that is what investors in serviced-office provider Regus have witnessed, as long-standing chief executive Mark Dixon cashed in 35m shares at 104p, banking himself £36.4m.
The sale was made a little easier to bear, though, by the fact that it only represents about 10 per cent of Mr Dixon's holding, which still stands at 34 per cent of the company. What's more, the ease with which the sale was made demonstrates the appetite in the market for this arch-cyclical stock . They indicated a stabilisation in the operating business.
Nevertheless, the group's earnings are expected to continue their downward trend in the coming year and the share price now looks vulnerable after such a strong run. "I think the stock has run too far and too quickly," says KBC Peel Hunt analyst Andrew Shepherd-Barron, who has a sell recommendation on Regus. "In our view [Mr Dixon] has extremely good market timing."
