Insiders Are Buying Biglari Holdings

| About: Biglari Holdings (BH)

In this article, I will feature one restaurant that has seen insider buying during the last 30 days.

Biglari Holdings (NYSE:BH) engages in the investment management and the franchising/operating of restaurants in the United States.

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Insider buying during the last 30 days

  • James Mastrian purchased 150 shares on August 22 and currently holds 150 shares or less than 0.1% of the company. James Mastrian serves as a director of the company. James Mastrian increased his holdings from zero shares to 150 shares in August.
  • William Johnson purchased 90 shares on August 13 and currently holds 190 shares or less than 0.1% of the company. William Johnson serves as a director of the company. William Johnson increased his holdings by 47.4% in August.

Financials

Biglari Holdings reported the fiscal 2013 third-quarter, which ended July 3, financial results on August 9 with the following highlights:

Revenue $184.6 million
Net income $106.7 million
Pre-tax operating earnings $4.8 million
Cash $153.6 million
Debt $236.2 million
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In the fiscal third quarter of 2013, Biglari Holdings contributed securities to investment partnerships and recognized a non-cash pre-tax gain of $162.9 million.

Competition

Biglari Holdings' competitors include Denny's Corporation (NASDAQ:DENN), Red Robin Gourmet Burgers (NASDAQ:RRGB) and Ruby Tuesday (NYSE:RT). Here is a table comparing these four companies.

Company BH DENN RRGB RT
Market Cap: 598.42M 517.24M 966.75M 448.17M
Employees: 22,000 8,000 22,342 18,200
Qtrly Rev Growth (yoy): 0.05 -0.07 0.07 N/A
Revenue: 750.68M 467.95M 998.64M 1.25B
Gross Margin: 0.23 0.38 0.23 0.18
EBITDA: 55.67M 77.84M 104.41M 95.79M
Operating Margin: 0.04 0.12 0.05 0.03
Net Income: 116.86M 25.12M 30.64M -23.43M
EPS: 87.53 0.26 2.12 -0.65
P/E: 4.77 22.00 31.83 N/A
PEG (5 yr expected): N/A 1.01 2.45 8.47
P/S: 0.80 1.11 0.97 0.36
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Biglari Holdings has the second lowest P/S ratio among these four companies. Denny's has seen three insider sell transactions this year. Red Robin Gourmet Burgers has seen nine insider sell transactions this year. Ruby Tuesday has seen 13 insider sell transactions and two insider buy transactions this year.

Conclusion

There is one analyst buy rating, zero neutral ratings and zero sell ratings with an average target price of $487.14. Biglari Holdings has a book value of $336.76 per share and the stock is trading at a forward P/E ratio of 29.04. The 200-day moving average is currently at $394.24, which could be a good entry point for the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.