Sardar Biglari, Chairman and CEO of Biglari Holdings Inc. (NYSE:BH), has increased his stake in the company through a series of recent transactions. According to a recent SEC filing, Biglari acquired shares totaling approximately $506,690. The purchases included Class A and Class B common stock, with prices ranging from $207.46 to $1,030 per share.
The acquisitions were made by The Lion Fund, L.P., an entity in which Biglari holds an indirect ownership interest. The shares acquired include 1 share of Class A common stock at $1,030 per share and multiple transactions of Class B common stock at varying prices. These transactions highlight Biglari's continued investment in Biglari Holdings, a company involved in the retail-eating places sector.
The filing also notes that Biglari Capital Corp., the general partner of The Lion Fund, is involved in these transactions, with Biglari serving as its sole member, Chairman, and CEO. This connection underscores Biglari's significant role and influence within the company and its associated entities.
InvestingPro Insights
Sardar Biglari's recent increase in stake aligns with several positive indicators for Biglari Holdings Inc. (NYSE:BH). According to InvestingPro data, the company's market capitalization stands at $126.48 million, with a notably low P/E ratio of 1.14. This suggests that the stock may be undervalued relative to its earnings, potentially explaining Biglari's decision to increase his position.
InvestingPro Tips reveal that BH holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These factors indicate a strong financial position, which could be attractive to investors like Biglari who are looking to increase their stake in the company.
The stock's recent performance has been impressive, with InvestingPro data showing a 24.82% price return over the past month and a 41.79% return over the last year. This positive momentum is further supported by the fact that BH is trading near its 52-week high, currently at 94.25% of that level.
It's worth noting that while BH does not pay a dividend to shareholders, it has been profitable over the last twelve months. This profitability, combined with the company's strong financial position, may have influenced Biglari's decision to increase his stake.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips for Biglari Holdings Inc., providing a deeper understanding of the company's financial health and market position.
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