Biglari (NYSE:BH) Stock Price Up 5.1% - Time to Buy?

Key Points

• Biglari shares rose 5.1% to about $384.21, exceeding both the 50-day moving average of $371.49 and the 200-day average of $347.22, while trading volume was roughly half its daily average.
• The company reported quarterly revenue of $108.52 million and earnings per share of $158.17, but posted a negative net margin of 7.33% and a price-to-earnings ratio of -3.53.
• Insider selling may concern investors: major shareholder Sardar Biglari sold 80,000 shares, while insiders sold 119,257 shares worth about $2.0 million during the quarter. Hedge funds and other institutions own 74.30% of the stock.

Biglari Holdings Inc. (NYSE:BH - Get Free Report) shot up 5.1% during mid-day trading on Tuesday. The stock traded as high as $384.36 and last traded at $384.2070. Approximately 54,974 shares traded hands during mid-day trading, a decline of 50% from the average daily volume of 110,766 shares. The stock had previously closed at $365.54.

Biglari Stock Performance

The firm has a fifty day simple moving average of $371.49 and a 200-day simple moving average of $347.22. 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 company has a market cap of $899.69 million, a PE ratio of -3.53 and a beta of 0.64.

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

Insider Transactions at Biglari

In other Biglari news, major shareholder Sardar Biglari sold 80,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was 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 owned 66,422 shares in the company, valued at approximately $1,122,531.80. The trade was a 54.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last quarter, insiders sold 119,257 shares of company stock worth $2,008,764. Company insiders own 68.53% of the company's stock.

Hedge Funds Weigh In On Biglari

A number of hedge funds have recently modified their holdings of BH. Y Intercept Hong Kong Ltd purchased a new position in Biglari during the 1st quarter worth $1,404,000. Engineers Gate Manager LP increased its stake in Biglari by 869.7% in the second quarter. Engineers Gate Manager LP now owns 1,920 shares of the restaurant operator's stock valued at $818,000 after purchasing an additional 1,722 shares during the period. Strs Ohio raised its holdings in shares of Biglari by 5.6% in the first quarter. Strs Ohio now owns 1,900 shares of the restaurant operator's stock valued at $626,000 after buying an additional 100 shares during the last quarter. SG Americas Securities LLC purchased a new stake in shares of Biglari in the first quarter valued at about $500,000. Finally, Hsbc Holdings PLC purchased a new stake in shares of Biglari in the fourth quarter valued at about $498,000. 74.30% of the stock is currently owned by hedge funds and other institutional investors.

Biglari Company Profile

Biglari Holdings Inc NYSE: BH is a diversified holding company led by Chairman and Chief Executive Officer Sardar Biglari. Rather than operating as a single-industry business, the company owns and manages a collection of operating subsidiaries and investments across the restaurant, insurance, media and investment-management industries.

Its restaurant operations include Steak 'n Shake, a casual dining chain known for steakburgers and hand-dipped milkshakes, and Western Sizzlin, a steakhouse and buffet concept.

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