Investors following Fat Brands Inc (NASDAQ:FAT) may be interested to learn that company director Andrew Wiederhorn engaged in a recent stock transaction, according to the latest SEC filings. Wiederhorn purchased shares of Fat Brands' Class B Common Stock, reflecting confidence in the company.
The transaction, which took place on March 15, involved the acquisition of 500 shares at a weighted average price of $6.16. The reported prices for the shares ranged from $6.08 to $6.48, indicating a modest variation in the purchase values. Following this transaction, Wiederhorn now directly owns 8,079 shares of Fat Brands.
Additionally, it is noted that Wiederhorn is associated with Fog Cutter Holdings LLC, which directly holds 706,514 shares of Fat Brands. However, he disclaims beneficial ownership of these shares, except for his pecuniary interest. This distinction is important for investors to understand the extent of Wiederhorn's stake in the company.
The recent purchase by Wiederhorn might be seen by the market as a positive signal, as directors' stock transactions are often closely monitored by investors for insights into executive sentiment toward their company's prospects.
For those tracking insider activity, this purchase by a Fat Brands director could be a point of interest when considering the company's stock performance and future potential.
InvestingPro Insights
Investors keeping an eye on Fat Brands Inc (NASDAQ:FAT) should consider the latest insights from InvestingPro. Despite a challenging market, there are notable aspects of Fat Brands' financial health and stock performance that could influence investment decisions.
One of the key InvestingPro Tips points out that Fat Brands operates with a significant debt burden, which is an important factor for investors to be aware of when assessing the company's financial stability. Additionally, while the company has been raising its dividend for 3 consecutive years, providing a current dividend yield of 7.68%, analysts are not expecting the company to be profitable this year. The combination of a high dividend yield and lack of profitability could indicate a potential risk for dividend sustainability.
From a data perspective, Fat Brands' market capitalization stands at 123.85M USD, which gives a sense of the company's size in the market. The revenue growth over the last twelve months has been substantial, at 17.98%, showing that the company is expanding its top-line sales. However, the P/E ratio is currently negative at -1.14, reflecting investor concerns about the company's earnings potential.
It's also worth noting that the stock price has experienced volatility, with a 1-month price total return of -20.15%, yet a strong 3-month price total return of 15.69%. This volatility is something that potential investors should consider when evaluating the timing of their investment decisions.
For those looking for more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/FAT. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive insights that could further inform your investment strategy.
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