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

May.18.14 | About: Buffalo Wild (BWLD)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Sally Smith CEO May 15 1,500 Yes 78,391 shares 1.9%
Warren Mack Director May 12 695 No 18,724 shares 3.6%
Kathleen Benning EVP May 5 4,857 No 12,034 shares 28.8%
Judith Shoulak EVP April 30 5,460 No 14,704 shares 27.1%
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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.

Month Insider selling / shares Insider buying / shares
May 2014 7,052 0
April 2014 7,960 0
March 2014 2,500 0
February 2014 0 0
January 2014 0 0
December 2013 3,000 0
November 2013 5,751 0
October 2013 5,000 0
September 2013 4,000 0
August 2013 11,095 0
July 2013 4,000 0
June 2013 9,750 0
May 2013 18,996 0
April 2013 4,000 0
March 2013 2,750 0
February 2013 15,936 0
January 2013 3,550 0
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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
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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.

Company BWLD BLMN CMG
Market Cap: 2.66B 2.68B 15.56B
Employees: 2,900 101,000 45,340
Qtrly Rev Growth (yoy): 0.21 0.06 0.24
Revenue: 1.33B 4.19B 3.39B
Gross Margin: 0.25 0.16 0.37
EBITDA: 212.75M 405.58M 654.17M
Operating Margin: 0.09 0.06 0.16
Net Income: 83.49M 198.88M 333.92M
EPS: 4.41 1.55 10.66
P/E: 31.90 13.91 46.96
PEG (5 yr expected): 1.37 1.04 1.85
P/S: 1.99 0.61 4.54
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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.

Company Insider buying / shares Insider selling / shares
BLMN 5,000 0
CMG 1,000 1,875
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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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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in BWLD 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.