In a recent transaction disclosed through a filing with the Securities and Exchange Commission, Brinker International, Inc.'s (NYSE:EAT) Executive Vice President and Chief Financial Officer, Taylor Joseph G, sold a significant amount of company stock. The executive parted with 40,050 shares at an average price of $60.45, netting a total of $2,421,022 from the sale.
The transactions took place on May 13, 2024, and were reported in a Form 4 document filed with the SEC. According to the filing, the shares sold by Taylor were disposed of in multiple transactions at prices ranging from $60.23 to $60.82. The reported average price of $60.45 represents a weighted average of these sales.
In addition to the sale, the filing also disclosed that Taylor exercised options to acquire shares of Brinker International stock. These options were exercised at prices between $38.51 and $54.33, with a total transaction value amounting to $1,706,520. Following the exercise of options and the subsequent sale of shares, Taylor's direct ownership in the company has been adjusted to 66,286 shares of common stock.
Brinker International, headquartered in Dallas, Texas, operates under the retail eating places industry and is known for its restaurant brands. The transactions by the company's EVP & CFO come at a time when investors keep a close eye on insider trading activities to gauge the confidence level of management in the business's prospects.
It's worth noting that the options exercised by Taylor were vested in installments, as indicated in the footnotes of the filing. The specific details regarding the number of shares sold at each separate price within the ranges provided are available upon request from Brinker International or the SEC.
The report of these transactions provides investors with insight into the actions of high-level executives at Brinker International and may be considered in the broader context of the company's financial health and stock performance.
InvestingPro Insights
Brinker International, Inc. (NYSE:EAT) has been a subject of interest for investors, particularly in light of recent insider transactions. InvestingPro data provides additional context to the company's current financial standing. As of the last twelve months as of Q3 2024, Brinker International has a market capitalization of $2.78 billion and a P/E ratio of 18.16, which adjusts to 15.49 when considering the company's near-term earnings growth. This suggests that the stock is trading at a low P/E ratio relative to its earnings growth, indicating potential undervaluation.
The company's revenue growth during the same period was modest at 4.98%, with a gross profit margin of 13.7%. Despite the challenges of maintaining higher profit margins, Brinker International has shown a significant return over the last week, with a price total return of 9.53%. Over the last year, the stock has also seen a high return of 68.67%, and it is currently trading near its 52-week high, at 97.79% of the peak price.
InvestingPro Tips reveal that analysts are optimistic about Brinker International's future, with 15 analysts having revised their earnings upwards for the upcoming period. This could be a signal for potential investors that the company's financial health may continue to improve. On the flip side, the Relative Strength Index (RSI) suggests that the stock is in overbought territory, which might imply a pullback in the near term. Additionally, the company's stock price movements have been quite volatile, which could be a concern for risk-averse investors.
To explore further insights and to access additional InvestingPro Tips, which may help in making informed investment decisions, visit InvestingPro's Brinker International page. There are currently over 10 additional tips available on InvestingPro. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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