On September 22, 2023, Sandra Cochran, President & CEO of Cracker Barrel Old Country Store Inc (NASDAQ:CBRL), sold 24,700 shares of the company. This move comes as part of a series of transactions by the insider over the past year, during which Cochran has sold a total of 24,700 shares and purchased none.
Cracker Barrel Old Country Store Inc is a well-known American chain of combined restaurant and gift stores with a Southern country theme. The company was founded in 1969 and has since expanded to over 600 locations across 42 states. The company's primary aim is to provide a friendly home-away-from-home atmosphere in its old country stores and restaurants.
The insider's recent sell has raised questions about the company's current valuation and future prospects. To better understand the implications of this move, it's essential to analyze the relationship between insider transactions and the company's stock price.
The insider transaction history for Cracker Barrel Old Country Store Inc shows no insider buys over the past year, with only one insider sell recorded. This trend could indicate a lack of confidence in the company's future performance, which may impact the stock price negatively.
On the day of the insider's recent sell, shares of Cracker Barrel Old Country Store Inc were trading at $67.13, giving the company a market cap of $1.48 billion. The price-earnings ratio stands at 15.00, which is lower than the industry median of 23.86 and the companys historical median price-earnings ratio. This suggests that the stock may be undervalued.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, the stock is significantly undervalued. With a price of $67.13 and a GuruFocus Value of $143.85, the price-to-GF-Value ratio stands at 0.47.
In conclusion, while the insider's recent sell may raise concerns, the stock's current valuation suggests that it may be a good buying opportunity for investors. However, potential investors should conduct their own research and consider the company's financial health, future growth prospects, and other market factors before making an investment decision.
This article first appeared on GuruFocus.