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CEO, Director & President Gerard Hart Just Bought 99% More Shares In Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)
Investors who take an interest in Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) should definitely note that the CEO, Director & President, Gerard Hart, recently paid US$11.99 per share to buy US$300k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 99%, potentially signalling some real optimism.
See our latest analysis for Red Robin Gourmet Burgers
Red Robin Gourmet Burgers Insider Transactions Over The Last Year
In fact, the recent purchase by Gerard Hart was the biggest purchase of Red Robin Gourmet Burgers shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$12.02 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Red Robin Gourmet Burgers insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$8.73. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Red Robin Gourmet Burgers
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.9% of Red Robin Gourmet Burgers shares, worth about US$7.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Red Robin Gourmet Burgers Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Red Robin Gourmet Burgers insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Red Robin Gourmet Burgers has 2 warning signs and it would be unwise to ignore these.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for Red Robin Gourmet Burgers?
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province.
Risks
Volatile share price over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Further research on
Red Robin Gourmet Burgers
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:RRGB
Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province.
Fair value with worrying balance sheet.
