Insider: Is this founder selling really bad news?

Regus founder pockets £94m

A strong run driven by speculation the firm had been looking for a buyer sent shares in office workspace provider IWG to record highs in June.

After news leaked, the stock spiked to 392p, but enthusiasm was tempered slightly, leaving them just above the 360p for a time.

However, that kind of performance means the former Regus has returned 50% since the start of 2017, prompting founder and chief executive Mark Dixon to cash in.

Through his investment vehicle Estorn Ltd, the Essex businessman, who founded the company nearly 30 years ago, pocketed a cool £94.2 million by offloading 27.3 million shares at 345p Monday.

He still owns a quarter of the company, but his stake sale caused a 10% slump in the share price to a seven-week low at under 324p. It doesn't help that his decision appears to quash rumours of a takeover – some analysts had speculated Dixon's ambition had been to take IWG private.

That said, what's left of Dixon's holding is currently worth a cool £760 million. It was much less in November, before the company changed its name from Regus to IWG. Then the shares were worth just 223p.

Since then, February's strong results following a "transformational" year have triggered an impressive rally, restoring faith after a grim 2016.

Chiefs back Capita and Bovis to keep rising

A couple of previously troubled firms have received a shot in the arm recently. And chiefs at both remain confident – certainly enough to use their own money to back the business.

Neil Woodford favourite Capita has had a dreadful run, losing two-thirds of its value from its peak in July 2015 to a bottom in late 2016 with a profits warning thrown in for good measure.

Still, its backers, including Woodford, have kept the faith and, in the six months since its December low of 431p, its rebounded two-thirds and is a whisker away from £7.

Renewed optimism has spurred management into action, with non-executive director Andrew Williams spending £67,150 on 10,000 shares at 671.5p each. Finance director made a smaller bet, buying 1,500 shares at just under 668p.

Elsewhere, housebuilder Bovis Homes' problems have been well documented, but it also plummeted by two-thirds between August 2015 and the day after the EU referendum. That said, the freak slip to 430p was short-lived and shares closed on 24 June 2016 at 775p – down a third on its August peak.

From that close, Bovis is currently 23% higher at 952p and, again, directors are betting on a continued recovery. Chief exec Greg Fitzgerald parted with just shy of £2 million for 215,500 shares at under 920p. Finance director Earl Sibley shelled out £50k at 962.75p.

All four directors are already sitting pretty, but are clearly betting that recent share price rallies have legs.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.