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Stephen I. Sadove, former chairman and CEO of Saks, was named to the board of Movado Group (MOV) on Aug. 23, five days before the luxury brand’s second-quarter report sent shares tumbling 15%.
Sadove bought 6,000 Movado shares for $256,860, or $42.81 each on average, on Aug. 31, according to a filing he made with the Securities and Exchange Commission. It’s his first purchase of shares over the counter, and the first such insider stock buy since Movado Chairman and CEO Efraim Grinberg bought 5,000 shares in June 2016 for $98,100, or $19.62 each.
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Movado didn’t immediately respond to a request for comment.
Cowen’s Oliver Chen noted in an Aug. 29 report that Movado met expectations for the second quarter and raised expectations, but “negative trends in U.S. wholesale” may have concerned investors. He kept a Market Perform rating and $50 price target, but acknowledged that “Movado stock may be partially oversold and overreacting” to the results.
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