(Bloomberg) — When Delivery Hero SE’s stock plunged in their worst selloff on record last week, Chief Executive Officer Niklas Oestberg took to Twitter to apologize to shareholders. He also put his money where his mouth is.
Oestberg, the co-founder of the Berlin-based food-delivery company, bought about 14 million euros ($16 million) worth of stock on Feb. 10, the day Delivery Hero saw more than 30% of its value wiped out, a regulatory filing showed on Tuesday.
Delivery Hero’s crash was just the latest pounding of a pandemic winner as governments begin to lift coronavirus restrictions, workers return to the office, and leisure travel bounces back. The company, which has yet to post a profit, disappointed investors with projections for 2022 that foresee a loss on a key profitability metric.
The CEO’s confidence in the stock was echoed by analysts at Credit Suisse Group AG, who regard Delivery Hero as “undervalued.” They’ve kept their outperform rating, while slashing the price target to 90 euros from 171 euros, saying last week’s selloff was “overdone.”
While Delivery Hero has pared some of the losses, trading up 9.1% at 47.21 euros as of 12:11 p.m. in Frankfurt, that’s still only marginally above the average 47.20 euros a share Oestberg paid.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
