Insider Trading Report: BurgerFi International (BFI)

Ophir Sternberg, Executive Chairman at BurgerFi International (BFI), recently picked up 50,000 shares. The buy increased the executive’s holdings by 9 percent, and came to a total price of $306,000.

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  • This marks the first insider buy since December 2020, when Sternberg bought 1,000,000 shares at a price of $10 million. Otherwise, one major insider has been a seller over the past year in small increments.

    Insiders own 37.5 percent of the company overall.

    Shares of the burger chain have slid 55 percent over the past year, even as the company has grown revenue by 25 percent. The firm has yet to make a profit, but sits on a decent balance sheet with over 20 percent of the share price in cash.

    Action to take: As a smaller restaurant chain with about 120 locations across a number of brands, there’s plenty of room for longer-term growth at the chain. That could lead to a higher share price in the year ahead, although investors won’t receive a dividend for some time. Shares have been in a downtrend, so buyers should wait before buying for the long haul.

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  • For traders, shares have been in a pretty clear downtrend, which is likely to continue in the short run. A put option, like the May $5 puts, which last carried a bid/ask spread of about $0.55, could deliver mid-to-high double-digit returns on a continued decline. If shares break the downtrend, a solid rally could occur, so consider a call option in that event.

     

    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 of the companies mentioned in this article.

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