GMT Capital Corp., a major holder of Cracker Barrel Old Country Store (CBRL), recently bought 63,600 shares. The buy increased the fund’s position by 3%, and came to a total cost of $2.42 million.
The buy came a week after the fund bought 105,900 shares, a 5% increase in holdings at a cost of $3.8 million. Otherwise, there has been one insider sale over the past two years, with the company’s President and CEO making a small sale.
Overall, Cracker Barrel insiders own 1.4% of shares, and institutional investors own the remaining float of shares.
The restaurant chain is down 33% over the past year, as high food prices and a consumer pullback on spending have weighed on shares.
Cracker Barrel has had a mixed year. Revenues rose 1.5%, but overall earnings growth sank by 16% on the back of rising costs.
Action to take: Cracker Barrel shares recently hit a 52-week low and have started to rebound. In the short-term, shares may have some more upside in the weeks ahead.
Today’s buyers could potentially see double-digit gains given the extent of the selloff over the past year. Plus at current prices, Cracker Barrel also pays a 2.4% dividend.
For traders, the July $50 calls, last trading for about $2.60, could see mid-double-digit returns from a further move higher in the weeks ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.