The Fresh Market: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Apr. 4.14 | About: The Fresh (TFM)

Summary

Three insiders purchased The Fresh Market stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

All three of these insiders increased their holdings by more than 10%.

The Fresh Market (NASDAQ:TFM) operates as a specialty food retailer in the United States.

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Insider buying during the last 30 days

Here is a table of The Fresh Market's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
David Rea Director April 1 3,000 9,863 shares +43.7%
Craig Carlock CEO March 28 20,000 218,349 shares +10.1%
Jeffrey Naylor Director March 27 8,000 14,863 shares +116.6%
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There have been 31,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of The Fresh Market's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2014 3,000 0
March 2014 28,000 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 10,000
May 2013 0 0
April 2013 1,000 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 32,000 shares purchased, and there have been 10,000 shares sold by insiders since January 2013. The month of March 2014 has seen the most insider buying.

Financials

The Fresh Market reported the fiscal 2013 full-year, which ended January 26, financial results on March 6 with the following highlights:

Revenue $1.5 billion
Net income $50.8 million
Cash $11.7 million
Debt $50.8 million
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The three insiders purchased their shares after these results.

Outlook

The Fresh Market's fiscal 2014 guidance is as follows:

Comparable store sales growth 1.5%-3.5%
EPS $1.30-$1.43
Adjusted EPS $1.56-$1.66
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The company expects adjusted earnings for the first quarter of $0.41 to $0.44 per diluted share.

Competition

The Fresh Market's competitors include Whole Foods Market (NASDAQ:WFM) and Sprouts Farmers Market (NASDAQ:SFM). Here is a table comparing these companies.

Company TFM WFM SFM
Market Cap: 1.77B 19.43B 5.65B
Employees: 7,200 56,700 14,000
Qtrly Rev Growth (yoy): 0.15 0.10 0.27
Revenue: 1.51B 13.30B 2.44B
Gross Margin: 0.34 0.36 0.30
EBITDA: 165.76M 1.26B 189.59M
Operating Margin: 0.07 0.07 0.06
Net Income: 50.81M 563.00M 51.33M
EPS: 1.05 1.50 0.37
P/E: 34.84 N/A 103.32
PEG (5 yr expected): 1.37 1.87 2.39
P/S: 1.18 1.47 2.31
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The Fresh Market has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
WFM 0 89,977
SFM 0 10,529,380
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Only The Fresh Market has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying The Fresh Market, and there have not been any insiders selling The Fresh Market during the last 30 days. All three of these insiders increased their holdings by more than 10%. The Fresh Market has an insider ownership of 20.52%.

The three insiders purchased their shares at prices ranging from $32.99 to $34.35. I believe The Fresh Market could be a good pick below $34.35 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TFM over 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.