In a recent series of transactions, an insider at Ark Restaurants Corp (NASDAQ:ARKR) has made a significant investment in the company's stock. Thomas A. Satterfield Jr., a ten percent owner of the company, purchased shares with a total value exceeding $288,000. The transactions took place over two days, with prices ranging from $14.56 to $15.73 per share.
On May 20, 2024, Satterfield acquired 1,578 shares at $14.56 each and made another purchase of 10,000 shares at an average price of $15.23. The latter transaction involved a range of prices from $14.56 to $15.37, indicating multiple purchases at varying prices. Additionally, 4,000 shares were bought at an average price of $15.40, with individual transactions ranging from $15.20 to $15.50 per share.
The buying continued on May 21, with Satterfield picking up another 3,301 shares at an average price of $15.73, with prices during the transactions falling between $15.50 and $16.00. These purchases demonstrate a strong vote of confidence from Satterfield in the future of Ark Restaurants.
Following these transactions, Satterfield's direct and indirect holdings in Ark Restaurants have increased significantly. The direct holdings, which include 57,500 shares held jointly with his spouse, are complemented by indirect holdings through entities such as Caldwell Mill Opportunity Fund and Tomsat Investment & Trading Co., Inc., as well as shares controlled by family members and related entities.
Investors often view insider transactions as a signal of the management's outlook on the company's prospects. In this case, Satterfield's substantial investment aligns with a positive perspective on Ark Restaurants' future performance. As the company continues to navigate the competitive restaurant industry, these insider transactions will be of interest to current and potential investors alike.
InvestingPro Insights
Amidst the insider transactions at Ark Restaurants Corp (NASDAQ:ARKR), a deeper look into the company's financials and performance metrics may offer investors additional context. According to InvestingPro, ARKR's market capitalization stands at a modest 56.41 million USD. Despite this, the company's P/E ratio is currently negative at -7.77, reflecting that it has not been profitable over the last twelve months. This aligns with one of the InvestingPro Tips which points out ARKR's lack of profitability in this period.
On a more positive note, ARKR has seen a strong return over the last month, with a 19.22% increase in price total return, which is another highlight from the InvestingPro Tips. Additionally, the company's dividend yield is notably high at 4.62%, coupled with a significant dividend growth rate of 50.0% over the last twelve months as of Q2 2024. This could be particularly attractive to income-focused investors.
While the company is trading at a high EBIT valuation multiple with an adjusted P/E ratio of 42.87, it's worth noting that the PEG ratio, which measures the relationship between the price/earnings ratio and earnings growth rate, is quite low at 0.04. This suggests that if the company can turn its earnings around, there may be growth potential that is not yet reflected in the stock price.
For those interested in further insights, InvestingPro offers additional tips on ARKR. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to stay ahead with comprehensive investment analysis.
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