How to buy, sell and short Boohoo shares

How to buy or invest in Boohoo shares

You can ‘buy’ shares in Boohoo by speculating on the movements in its share price with derivatives like spread bets and 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.

You can also invest in Boohoo shares in the traditional way using our share dealing service. This enables you to become a company shareholder, making you eligible to receive dividends should they be paid and giving you voting rights in company decisions.

Follow the steps below to invest in or buy Boohoo shares:

Learn more about the differences between trading and investing to select the best option for you.

How much would it cost to invest in Boohoo?

IG provides the best commission rates available to active clients who have placed three or more trades in the previous calendar month.

Alternatively, you could choose to trade derivatives with spread bets and CFDs instead. This will allow you to:

• Get full exposure with a 20%-25% deposit on almost all of our tier-one shares¹
• Spread bet without paying tax on any profits²
• Hedge your positions with CFDs and offset losses against profits for tax purposes²

How to sell or short Shell shares

‘Selling’ relates to investing and ‘shorting’ to trading. Let’s take a closer look at the differences.

If you already own Boohoo shares, there may come a time when you want to sell them. If the share price is higher than what you paid for them, you’ll make a profit. If it’s lower, you’ll cut a loss.

If you think the share price might fall but don’t want to sell your shares, you can always trade derivatives to hedge your investment. You can transfer your existing electronic shares to us for free,³ enabling you to sell them via our easy-to-use share dealing platform.

If you haven’t invested in Boohoo shares but think the share price is going to fall, you can short shares using spread bets and CFDs. If the share price drops and you’ve taken a short position, you’ll make a profit.

Follow these steps to sell or short Boohoo shares:

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:

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:

• Parabolic stop and reverse (SAR)
• Moving averages
• Relative strength index (RSI)

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

• If you think the Boohoo share price will increase, invest in the company directly or buy shares with derivatives
• If you think the Boohoo share price will decrease, sell your existing shares or short-sell them with derivatives
• You can trade Boohoo shares using derivatives like spread bets and CFDs. This enables you to take a position without owning any underlying assets
• Transfer your existing electronic Boohoo shares to us for free³
• 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.
³ Physical share dematerialisation fee is £100 (inclusive of VAT) per certificate. Electronic shares are transferred free of charge. IG SIPPs are administered by James Hay, who charge a £205 annual fee and may charge for transferring investments not currently held in a SIPP. You may be out of the market for a period while your transfer takes place.