Four Corners Prop Insider Trades Send A Signal

John S Moody, Director at Four Corners Prop FCPT, executed a substantial insider sell on June 12, according to an SEC filing.

What Happened: Moody's decision to sell 7,230 shares of Four Corners Prop was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $177,568.

The latest market snapshot at Thursday morning reveals Four Corners Prop shares down by 0.0%, trading at $24.29.

Get to Know Four Corners Prop Better

Four Corners Property Trust Inc is a real estate investment trust predominantly engaged in the ownership, acquisition and leasing of restaurant and retail properties. The company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. The firm operates through two segments namely, real estate operations and restaurant operations. The real estate operations segment consists of rental revenues generated by leasing restaurant and retail properties to tenants. The restaurant operations segment is conducted through a taxable REIT subsidiary (TRS) and consists of Kerrow Restaurant Operating Business. The firm generates majority of the revenue from the real estate operations segment.

Understanding the Numbers: Four Corners Prop's Finances

Revenue Growth: Four Corners Prop's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 10.87%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Evaluating Earnings Performance:

• Gross Margin: Achieving a high gross margin of 83.98%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Four Corners Prop's EPS reflects a decline, falling below the industry average with a current EPS of 0.26.

Debt Management: Four Corners Prop's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.9.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.92 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 8.52 is above industry norms, reflecting an elevated valuation for Four Corners Prop's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 17.11, Four Corners Prop demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Four Corners Prop's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.