A substantial acquisition of company stock options by Sarah O Moore, SVP & Chief Marketing Officer at Cracker Barrel Old CBRL was reported on September 30, based on a new SEC filing.

What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Moore, SVP & Chief Marketing Officer at Cracker Barrel Old, acquired stock options for 4,206 shares of CBRL. These options provide Moore with the right to purchase the company’s stock at $45.96 per share.

As of Tuesday morning, Cracker Barrel Old shares are up by 1.46%, with a current price of $46.01. This implies that Moore’s 4,206 shares have a value of $210.

Unveiling the Story Behind Cracker Barrel Old

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.

Key Indicators: Cracker Barrel Old’s Financial Health

Revenue Growth: Over the 3 months period, Cracker Barrel Old showcased positive performance, achieving a revenue growth rate of 6.89% as of 31 July, 2024. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: With a high gross margin of 32.1%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Cracker Barrel Old’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.82.

Debt Management: Cracker Barrel Old’s debt-to-equity ratio is below the industry average. With a ratio of 2.73, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 24.78 is lower than the industry average, implying a discounted valuation for Cracker Barrel Old’s stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.29 is lower than the industry average, implying a discounted valuation for Cracker Barrel Old’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Cracker Barrel Old’s EV/EBITDA ratio, lower than industry averages at 12.96, indicates attractively priced shares.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a 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.