Fund Investments LLC, 10% Owner at BJ’s Restaurants BJRI, reported an insider sell on April 28, according to a new SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, LLC sold 35,500 shares of BJ’s Restaurants. The total transaction value is $1,180,477.
Monitoring the market, BJ’s Restaurants‘s shares down by 0.0% at $33.49 during Tuesday’s morning.
Discovering BJ’s Restaurants: A Closer Look
BJ’s Restaurants Inc is involved in the business of owning and operating restaurants. The company operates in a single operating segment that is full-service company-owned restaurants. It has geographic presence only in the United States of America.
A Deep Dive into BJ’s Restaurants’s Financials
Positive Revenue Trend: Examining BJ’s Restaurants’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.4% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Evaluating Earnings Performance:
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Gross Margin: The company faces challenges with a low gross margin of 15.36%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): BJ’s Restaurants’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.23.
Debt Management: BJ’s Restaurants’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.35.
Market Valuation:
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Price to Earnings (P/E) Ratio: BJ’s Restaurants’s P/E ratio of 47.84 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.59 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 14.13, BJ’s Restaurants’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Illuminating the Importance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to 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.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Deep Dive into Insider Transaction Codes
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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 BJ’s Restaurants’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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