Donna Roberts Makes A Tactical Move: Adds Cracker Barrel Old Stock Options To Portfolio

In a new SEC filing on September 30, it was unveiled that Roberts, SVP at Cracker Barrel Old CBRL, acquired stock options for 6,554 shares.

What Happened: Disclosed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, Roberts, SVP at Cracker Barrel Old, made a strategic derivative acquisition. This involved acquiring stock options for 6,554 shares of CBRL, providing the right to buy the company's stock at an exercise price of $45.96 per share.

Cracker Barrel Old shares are trading up 1.46% at $46.01 at the time of this writing on Tuesday morning. Since the current price is $46.01, this makes Roberts's 6,554 shares worth $327.

Discovering Cracker Barrel Old: A Closer Look

Cracker Barrel Old Country Store Inc operates hundreds of full-service restaurants throughout the United States. Its restaurants are open for breakfast, lunch, and dinner, with menus that offer home-style country food. Cracker Barrel's biggest input costs are beef, dairy, fruits and vegetables, pork, and poultry. The company purchases its food products from a few different vendors on a cost-plus basis. All restaurants are located in freestanding buildings and include gift shops, which contribute roughly one fourth of total company revenue. Apparel and accessories are the company's biggest revenue generators in the retail segment of the business.

Understanding the Numbers: Cracker Barrel Old's Finances

Revenue Growth: Cracker Barrel Old's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 6.89%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 32.1%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.82, Cracker Barrel Old showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 2.73, Cracker Barrel Old adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.78, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.29 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.96, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Cracking Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Cracker Barrel Old's Insider Trades.

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