Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

A Cabelas Inc (CAB) Insider Is Bullish On Guns & Sporting Goods

Reuben Mark, who is a member of the Board of Directors at $4.8 billion market cap sporting goods retailer Cabelas Inc (NYSE:CAB), bought 5,000 shares of the company’s stock on May 30th at an average price of $67.65 per share. Studies show that stocks bought by insiders narrowly outperform the market (read our analysis of studies on insider trading) and we think that this is because insiders have to be confident in the company to buy more stock and therefore reduce the diversification of their wealth. While imitating every insider purchase is impossible, we like to provide brief coverage of insider purchases so that investors can do further research on any interesting names.


Cabelas Inc (NYSE:CAB) has more than doubled in price over the last year, and is up over 400% in the last five years. As a sporting goods retailer, Cabelas Inc (NYSE:CAB) has benefitted strongly from the higher demand for guns that has been present in the last few years (which we’d attribute, among other factors, to worries by gun owners that the federal government will soon further restrict sales of guns and ammunition). In the first quarter of 2013, revenue rose 29% versus a year earlier fueled by strong comp sales growth. The company specifically called out growth in hunting equipment as a key driver here. Earnings grew 73% over the same time frame, and cash flow from operations for the quarter was over $120 million. The market has already priced in quite a bit of further growth, and so Cabelas Inc (NYSE:CAB) trades at 25 times trailing earnings and at 17 times consensus earnings forecasts for 2014.

In addition to insider trading activity, we also maintain a database of quarterly 13F filings from hundreds of hedge funds and other notable investors. We use the information included in 13Fs to help us develop investment strategies; for example, we have found that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year. Our database of filings can also be used to track interest in individual stocks, and we can see that billionaire Ken Fisher’s Fisher Asset Management reported a position of over 2 million shares in Cabelas Inc (NYSE:CAB) at the end of March (find Fisher’s stock picks).

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.