Insider Activity Report: Potbelly Corp (PBPB)

David Nierenberg, a major holder at Potbelly Corp (PBPB), recently bought 7,600 shares. The buy came to a total of $70,149, and increased his position by less than 1%.

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  • Other company insiders, including the CEO, CFO, and COO, were buyers in the past year, usually in amounts ranging from $8,000 to $25,000 at a time. There has been just one insider sale over the past year, from a company SVP who sold 8% of his stake.

    Overall, Potbelly Corp insiders own 15.2% of shares.

    The sandwich chain is down 20% over the past year. That’s a bit out of line with a 5% drop in revenues over the past year, and especially unusual as earnings surged by 150%.

    Thanks to rising earnings but a declining share price, the chain now trade at about 8 times earnings.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • Action to take: Shares look reasonable value here, and the stock has been trending higher since bottoming out over the summer.

    Currently, Potbelly does not pay a dividend, and the company has opportunities to expand its footprint in the years ahead, or get bought out by a private equity fund given its sub-$1 billion market cap.

    For traders, shares are likely to keep trending higher. The April $11 calls, last trading for about $0.75, could see mid-to-high double-digit returns in the months 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.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!