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Summary

  • 4 insiders sold Buffalo Wild Wings stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 4 insiders decreased their holdings by more than 10%.

Buffalo Wild Wings (NASDAQ:BWLD) owns, operates, and franchises restaurants primarily in the United States.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Buffalo Wild Wings' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Sally SmithCEOMay 151,500Yes78,391 shares1.9%
Warren MackDirectorMay 12695No18,724 shares3.6%
Kathleen BenningEVPMay 54,857No12,034 shares28.8%
Judith ShoulakEVPApril 305,460No14,704 shares27.1%

There have been 12,512 shares sold by insiders during the last 30 days. Sally Smith sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Buffalo Wild Wings' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 20147,0520
April 20147,9600
March 20142,5000
February 201400
January 201400
December 20133,0000
November 20135,7510
October 20135,0000
September 20134,0000
August 201311,0950
July 20134,0000
June 20139,7500
May 201318,9960
April 20134,0000
March 20132,7500
February 201315,9360
January 20133,5500

There have been 105,340 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Buffalo Wild Wings reported the first-quarter financial results on April 28 with the following highlights:

Revenue$367.9 million
Net income$28.3 million
Cash$80.2 million

The four insiders sold their shares after these results.

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(Source: Investor presentation)

Outlook

Buffalo Wild Wings is expecting net earnings growth of 25% for 2014.

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(Source: Investor presentation)

Competition

Buffalo Wild Wings' competitors include Bloomin' Brands (NASDAQ:BLMN) and Chipotle Mexican Grill (NYSE:CMG). Here is a table comparing these companies.

CompanyBWLDBLMNCMG
Market Cap:2.66B2.68B15.56B
Employees:2,900101,00045,340
Qtrly Rev Growth (yoy):0.210.060.24
Revenue:1.33B4.19B3.39B
Gross Margin:0.250.160.37
EBITDA:212.75M405.58M654.17M
Operating Margin:0.090.060.16
Net Income:83.49M198.88M333.92M
EPS:4.411.5510.66
P/E:31.9013.9146.96
PEG (5 yr expected):1.371.041.85
P/S:1.990.614.54

Buffalo Wild Wings has the second-highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities during the last 30 days.

CompanyInsider buying / sharesInsider selling / shares
BLMN5,0000
CMG1,0001,875

Only Buffalo Wild Wings has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Buffalo Wild Wings, and there have not been any insiders buying Buffalo Wild Wings during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Buffalo Wild Wings has an insider ownership of 13.69%.

Buffalo Wild Wings has a $128 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $128 price target. I would place a stop loss at $160, which is the all-time high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Source: Buffalo Wild Wings: 4 Different Insiders Have Sold Shares During The Last 30 Days