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JD Sports chairman sells down

The retailer received bad news from the competition watchdog last month
June 10, 2020

Last week, JD Sports Fashion (JD.) executive chairman Peter Cowgill sold £13.3m of the retail group’s shares. News of the share sale, which took place on 5 June, sent JD shares down by as much as 8 per cent. Mr Cowgill retains a stake of 0.67 per cent in JD Sports.

IC TIP: Hold at 643p

JD Sports declined to comment on the chairman’s share disposal. It’s worth noting, however, that Mr Cowgill volunteered to take a 75 per cent salary cut during the current disruptive period. JD Sports board members have also agreed to the deferral of incentive payments, although it’s expected that these will be paid at some point in the future. The group has delayed the release of its full-year results from 15 April to 7 July, in order to ensure that its 2021 financial results adequately reflect the impact of Covid-19. 

The announcement was followed this week by analysts at RBC Capital downgrading JD Sports from a ‘sector perform’ rating to ‘underperform’. While acknowledging JD’s strong track record and management team, RBC fears that changes to shopping habits and an online shift may hinder its longer term margin recovery. 

RBC analysts expect lower sales densities in high traffic spots, which typically depend more on public transport. Weaker earning power among younger consumers could also play its part, they wrote.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
GetBusyMiles Jakeman1 Jun 20150,0006496,000 
International Personal FinanceStuart Sinclair (ch)4 Jun 2086,9445749,558 
Braveheart Investment GroupTrevor Brown5 Jun 20972,38517165,306 
Lok'nStoreCharles Peal5 Jun 207,20049835,856 
Lok'nStoreAntonia Peal5 Jun 207,20049235,424 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
AvastUlf Claesson4 Jun 20250,000486.891,217,225 
XP PowerAndy Sng4 Jun 207,9003,557281,003

Exercise and sale of options

SSPGail Davies4 Jun 20300,000315.50946,493

PCA of CFO Jonathan Davies, sold to facilitate property purchase

SoftcatColin Brown4-5 Jun 20120,0001,1111,333,024Aggregate price
ClinigenJohn Hartup5 Jun 205,0008.86544,325 
JD SportsPeter Cowgill5 Jun 201,985,000671.7713,334,635

Residual interst of 0.67%

Young & CoPatrick Dardis (ceo)8 Jun 2010,5001,110116,550 
Young & CoTorquil Sligo-Young8 Jun 2010,00072572,500 
Aston MartinAmr Ali Abdallah Abouelseoud8 Jun 20300,00078.93236,780Sold by PCA
Kainos GroupPaul Gannon8 Jun 20115,0008.659,950 
Kainos GroupPaul Gannon8 Jun 201,5008.3125