TUI AG still in the eye of the storm ?
In a recent article, we discussed the poor results of TUI and Thomas Cook. Investors are worried and stock market values are falling. But what is Fritz Joussen, TUI’s CEO, doing to reassure the market?
TUI actions unscrew
In August 2018, TUI AG’s share price was over 16 euros. On February 15, the share price was 9.26 euros. The group will have experienced a dramatic drop in its share price.
TUI’s CEO just got wet
The London Stock Exchange announced that Fritz Joussen, the CEO of the TUI group, had purchased €983,647 of the company’s shares.
With an average price of €9.84 per share, this would have generated approximately 100,000 shares. The CEO either wants to show that he has confidence in his group.
The second hypothesis is a bet on the future. We can surely trust him, he knows the company well and the prices should go up. Despite the sharp decline in TUI shares, analysts recommend either holding or buying.
The first quarter of 2019 saw disappointing results
According to Finanzen.At, this purchase took place during a week in which the shares of the TUI group lost one third of their value.
The reasons are simple: the disappointing results of the first quarter of 2019 and the company’s profit warning. Profit expectations will not be met.
At the end of fiscal 2018 (October 1, 2017 to September 30, 2018), TUI expected annual earnings growth of 10% by 2019; the group has now announced that their earnings for that year will be similar to the previous year (€1,222 million).
On Thomas Cook’s side, investors also saw the Thomas Cook share price decline. Over one year the share unscrewed by 76.22 %.