How to buy and short Boohoo shares
Boohoo is a portfolio of fashion and beauty brands founded in the UK. Learn how to buy and short Boohoo shares and discover how to analyse Boohoo’s share price.
How to buy Boohoo shares
You can ‘buy’ shares in Boohoo by speculating on the movements in its share price with derivatives like CFDs. This way, you can benefit from rising share prices without actually needing to own the underlying asset. This enables you to utilise leverage to get full market exposure from a much smaller initial deposit.
Follow the steps below to buy Boohoo shares:
- Create or log in to your trading account and go to our trading platform
- Search for ‘boohoo group PLC'
- Choose your position size
- Select ‘buy’ and monitor your trade
Trading derivatives like CFDs will allow you to:
- Get full exposure with a 20%-25% deposit on almost all of our tier-one shares1
- Hedge your positions with CFDs and offset losses against profits for tax purposes2
How to short Shell shares
If you think Bohoo´s share price is going to fall, you can go short. If the share price drops and you’ve taken a short position, you’ll make a profit.
Follow these steps to short Boohoo shares:
- Create or log in to your trading account and go to our trading platform
- Search for ‘boohoo group PLC’
- Choose your position size
- Choose ‘sell’ in the deal ticket to go short and speculate on the price falling
- Confirm and monitor your short position
Boohoo’s live market prices
Boohoo shares: the basics
Founded in 2006 and headquartered in Manchester, UK, Boohoo is listed on the London Stock Exchange (LSE) with the ticker symbol ‘BOO’.
During the 2019/2020 financial year, Boohoo fulfilled 42 million orders to nearly 14 million customers – generating £1.235 billion in revenue. The company also added five new brands to its stable – coast, Karen Millen, MissPap, Oasis and Warehouse.
The fashion retailer reported strong sales figures and customer growth during the first half of this year as millions of consumers turned to online shopping during the Covid-19 lockdown. As much as 45% of the company’s sales are now derived from outside the UK.
What is Boohoo’s business model?
Boohoo designs and sources a variety of fashion items targeting the 16 to 40-year-old segment, such as clothing, shoes, accessories and beauty products. The company is made up of nine core brands: boohoo, boohooMAN, Nasty Gal, coast, MissPap, PrettyLittleThing, Karen Millen, coast, Oasis and Warehouse.
The company operates according to a ‘fast fashion’ business model, delivering the latest trends to its customers within a matter of weeks at a low production cost. This has, however, raised concerns over the working conditions and salaries of the workers employed in their supply chain.
Boohoo aims to be a leader in online shopping. Recent improvements include new automation processes and warehouse expansions. They have also launched TikTok TV’s first dedicated campaign called ‘Move Me.’
Boohoo key personnel: who manages the company?
There are nine people currently on the Boohoo board of directors:
| Mahmud Kamani | Group executive chairman |
| Carol Kane | Group co-founder and executive director |
| John Lyttle | Chief executive officer |
| Neil Catto | Chief financial officer |
| Brian Small | Deputy chairman |
| Pierre Cuilleret | Non-executive director |
| Iain McDonald | Non-executive director |
| Shaun McCabe | Non-executive director |
| Keri Devine | Company secretary and general counsel |
How to analyse Boohoo’s share price
To analyse Boohoo’s share price accurately, you need to consider both fundamental and technical analysis.
Fundamental analysis looks at macroeconomic factors and helps you determine if shares are over- or underpriced. These factors include the cost of production as well as supply and demand.
You can use the following metrics to conduct fundamental analysis on Boohoo’s shares:
- Price-to-earnings ratio (P/E ratio)
- Return on equity (ROE)
- Earnings per share (EPS)
Technical analysis uses historical price data and technical indicators to determine what the market will do in the future. The following indicators are popular with traders:
It’s important to use both types of analysis when making a decision to go long or short on Boohoo shares.
Buying Boohoo shares summed up
- You can trade Boohoo shares using derivatives like CFDs. This enables you to take a position without owning any underlying assets
- If you think the Boohoo share price will increase, buy shares of the company with derivatives
- If you think the Boohoo share price will decrease, short-sell them with derivatives
- Use fundamental and technical analysis to determine whether you should go long or short when opening a position on Boohoo
Footnotes
1 Deposits on leveraged trades are 20%-25% for 99.14% of tier-one shares (correct as of 1 June 2020). For more information, view our share trading margin rates.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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