Biglari (NYSE:BH) Shares Gap Up - Still a Buy?

Key Points

• Biglari shares opened sharply higher, rising from a prior close of $383.75 to $413.36 before trading near $380.26 on volume of 17,502 shares.
• Wall Street Zen upgraded Biglari from “sell” to “hold.” The company recently reported quarterly EPS of $158.17 on revenue of $108.52 million, but posted a negative net margin of 7.33%.
• Insider selling remains notable: major shareholder Sardar Biglari sold 80,000 shares, while insiders sold 558,803 shares worth $9.43 million over the past quarter. Institutional investors own 74.30% of the stock.

Biglari Holdings Inc. (NYSE:BH - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $383.75, but opened at $413.36. Biglari shares last traded at $380.2550, with a volume of 17,502 shares.

Analyst Ratings Changes

Separately, Wall Street Zen raised Biglari from a "sell" rating to a "hold" rating in a research note on Sunday, May 17th.

Biglari Stock Performance

The company has a quick ratio of 2.42, a current ratio of 2.45 and a debt-to-equity ratio of 0.58. The stock has a 50 day simple moving average of $390.46 and a two-hundred day simple moving average of $344.08. The stock has a market capitalization of $882.59 million, a P/E ratio of -3.46 and a beta of 0.63.

Biglari (NYSE:BH - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The restaurant operator reported $158.17 earnings per share (EPS) for the quarter. The company had revenue of $108.52 million for the quarter. Biglari had a positive return on equity of 5.70% and a negative net margin of 7.33%.

Insider Activity

In related news, major shareholder Sardar Biglari sold 80,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $16.90, for a total value of $1,352,000.00. Following the completion of the sale, the insider directly owned 66,422 shares in the company, valued at approximately $1,122,531.80. This trade represents a 54.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last quarter, insiders have sold 558,803 shares of company stock valued at $9,427,504. 68.53% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Biglari

Hedge funds have recently added to or reduced their stakes in the business. CWM LLC raised its holdings in Biglari by 45.4% in the 4th quarter. CWM LLC now owns 141 shares of the restaurant operator's stock valued at $47,000 after acquiring an additional 44 shares during the period. Deutsche Bank AG increased its stake in shares of Biglari by 15.1% during the fourth quarter. Deutsche Bank AG now owns 419 shares of the restaurant operator's stock worth $139,000 after purchasing an additional 55 shares during the period. Occudo Quantitative Strategies LP lifted its holdings in Biglari by 6.9% during the 3rd quarter. Occudo Quantitative Strategies LP now owns 1,011 shares of the restaurant operator's stock worth $327,000 after purchasing an additional 65 shares during the last quarter. Wells Fargo & Company MN boosted its stake in Biglari by 9.5% in the 4th quarter. Wells Fargo & Company MN now owns 785 shares of the restaurant operator's stock valued at $261,000 after purchasing an additional 68 shares during the period. Finally, Russell Investments Group Ltd. grew its holdings in Biglari by 608.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 85 shares of the restaurant operator's stock valued at $28,000 after buying an additional 73 shares in the last quarter. Institutional investors and hedge funds own 74.30% of the company's stock.

Biglari Company Profile

Biglari Holdings Inc is a diversified holding company that makes strategic investments and operates businesses across multiple industries, with a primary focus on the restaurant, insurance and media sectors. The company seeks to acquire controlling interests in undervalued enterprises and enhance long-term value through active management and operational improvements. Headquartered in San Antonio, Texas, Biglari Holdings approaches each acquisition with a value-oriented philosophy, emphasizing disciplined capital allocation and hands-on oversight.

In the restaurant segment, Biglari Holdings owns and operates Steak 'n Shake, a national burger and milkshake chain founded in 1934, as well as Western Sizzlin, a buffet and steakhouse brand.

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