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.

Why Are These 3 Companies’ Insiders Dumping Shares?

Brinker International Inc. (NYSE:EAT) also had two insiders offload shares earlier this week. To start with, Director George R. Mrkonic Jr. discarded 5,584 shares on Tuesday at a weighted average price of $46.98, cutting his total stake to 29,406 shares. Executive Vice President and Chief Development Officer Roger F. Thomson sold an 11,460-share block on the same day, at prices varying from $46.50 to $46.56 per share, trimming his overall holding to 93,952 units of common stock.

The shares of the owner and franchisor of the Chili’s Grill & Bar and Maggiano’s Little Italy restaurant brands are down by 22% over the past 12-month period, so the recent insider selling at the company might take some investors by surprise. However, these insiders might have waited for the waiver of trading restrictions so as to raise some cash for personal needs, so one should be careful when analyzing such activity. Just recently, Brinker International reported total revenue of $1.55 billion for the 26-week period that ended December 23, which denoted an increase of 6.7% year-over-year. The increase was mainly attributable to higher restaurant capacity from the acquisition of Pepper Dining, which more than offset the negative comparable restaurant sales. The company blames the toughening competition and heavy discounting in the casual dining industry for the slumping growth in sales and traffic. Specifically, Brinker’s management believes that the slow wage growth stands behind the declining restaurant visits. Nonetheless, the company’s Board recently increased its quarterly dividend payment by 14% to $0.32 per share, which might serve as bait for some investors. Most importantly, the stock has a forward P/E multiple of 11.71 and looks extremely cheap relative to the restaurants industry, which has a forward P/E of 24.40. David Harding’s Winton Capital Management sold off its entire 505,821-share stake in Brinker International Inc. (NYSE:EAT) during the final quarter of 2015.

Follow Brinker International Inc (NYSE:EAT)
Trade (NYSE:EAT) Now!

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.