Perform Group Plc fell the most in more than four months after a series of share disposals by company insiders triggered a drop that an analyst said doesn’t alter the online sports broadcaster’s favorable potential.
Co-chief executive officers Oliver Slipper and Simon Denyer each sold 2 million shares on March 28. That was one-third of Slipper’s holdings, while Denyer still owns about 24 million shares, or 10 percent of Perform, according to data compiled by Bloomberg. The disposals were compounded today as Hans Thomas Gross, whose RunningBall Holding AG business was bought last year by Perform, sold a 5.4 percent stake.
“The disposal, in some cases, has caused people to pause and think about where the stock is going” said Patrick Yau, a media analyst at Peel Hunt in London who has a buy recommendation on the stock. “The fundamentals of the company I see as being still quite strong, I still believe in the company’s underlying model.”
Perform shares tumbled 3.2 percent to 460 pence at the close of trading in London today, the biggest decline since Nov. 27.
The stock has fallen about 12 percent since hitting a record intraday high on March 19, when Morgan Stanley raised its price target to 590 pence from 430 pence. Perform still has the biggest gain in the last 12 months among the 12 companies on the FTSE 350 Media Index.
Perform, based in Feltham, England, says it streamed 3 billion sports videos in 2011 and reaches more than 140 million fans around the world each month. The company, which reported 2012 sales of 151.6 million pounds ($232 million), said March 5 that it started 2013 with 130 million pounds already contracted and has “significant visibility over full-year revenue.”
Of the eight analysts who share their recommendations on Perform with Bloomberg, five advise buying, two say hold and one favors selling.