After Berkeley Group chairman Tony Pidgley cashed in £50m of shares in the housebuilder last Monday, the share price dipped 2.5%. Yet when Redrow founder Steve Morgan sold a slice of his company for a similar sum two days later, the stock kept moving up.
Although Morgan, 67, is no longer running the FTSE 250 housebuilder — he retired in March — some in the City had felt his near-30% stake acted as a drag on the shares by reducing liquidity.
He found plenty of buyers. Next to its peers, Redrow looks cheap. The shares are changing hands at all-time high prices, but the company trades at a discount of about 25% to the sector on both earnings and net asset value — key metrics.