Shares digital

Several directors of Easyjet (EZJ), led by the CEO Andrew Harrison and the chairman Sir Colin Chandler have been busy buying up stock over the last week.

Harrison invested some £250,000 while Chandler bought 10,000 shares and some other directors made smaller investments.

The group, whose profits rose by over 50% last year, has indicated that they should grow by around 20% this year, with analysts forecasting pre-tax profits of £234 million rising to £280 million next year. Although commentators may be concerned about their carbon footprint, passengers are less so and have been snapping up the low cost flights.

Passenger numbers increased by 9.9% in December and since then the group has been given regulatory approval to acquire GB Airways for £103.5 million. GB Airways operates ‘sun and ski’ holidays to Ibiza, Palma, and Innsbruck and the merger should lead to significant cost savings on these routes.

Shares says: At 421p the shares are selling on an attractive rating, a PE of 10.4.

by: John Marshall