Gmt capital makes $1.14 million purchase of Cracker Barrel stock

Published 17/04/2025, 19:12
Gmt capital makes $1.14 million purchase of Cracker Barrel stock

ATLANTA—GMT Capital Corp., along with affiliated entities Bay Resource Partners LP, Bay II Resource Partners LP, and Bay Resource Partners Offshore Master Fund, L.P., has collectively purchased 26,500 shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) common stock. The shares were acquired on April 16, 2025, at a price of $43.05 per share, totaling approximately $1.14 million. The purchase comes as CBRL’s stock, currently trading at $42.41, shows signs of undervaluation according to InvestingPro analysis, with the company’s market capitalization standing at $936 million.

The transaction was disclosed in a recent SEC Form 4 filing. Following the purchase, the total number of shares owned by these entities amounts to 2,542,300. The shares were divided among the entities as follows: Bay Resource Partners LP acquired 7,500 shares, Bay II Resource Partners LP purchased 4,800 shares, and Bay Resource Partners Offshore Master Fund, L.P. bought 12,700 shares. Additionally, Thomas E. Claugus, President of GMT Capital, acquired 1,500 shares, increasing his personal holdings to 142,300 shares. The investment comes as CBRL has demonstrated strong dividend reliability, maintaining payments for 44 consecutive years, despite recent share price volatility showing an 8.94% gain over the past week.

GMT Capital, as the general partner and discretionary investment manager for these entities, holds the authority to direct voting and disposition of the shares. The company and Claugus have disclaimed beneficial ownership except to the extent of any pecuniary interest ultimately realized. For a comprehensive analysis of CBRL’s financial health and additional insights, investors can access detailed metrics and expert analysis through InvestingPro’s exclusive research reports, available for over 1,400 US stocks.

In other recent news, Cracker Barrel Old Country Store reported a strong financial performance for the first quarter of fiscal year 2025, with earnings per share reaching $1.38, surpassing the expected $0.99. The company’s revenue also exceeded expectations, totaling $949.4 million against a forecast of $939.97 million. Truist Securities upgraded Cracker Barrel’s stock rating from Hold to Buy, setting a new price target of $55, attributing the upgrade to the company’s solid financial results and ongoing turnaround efforts. However, BofA Securities adjusted its stance by lowering the price target to $48 while maintaining an Underperform rating, citing broader industry challenges and near-term prospects. Despite these differing analyst perspectives, Cracker Barrel’s recent initiatives, including menu innovation and operational improvements, have positively impacted its financial results. The company has seen a 4.7% growth in comparable store restaurant sales, although retail sales experienced a slight decline. Cracker Barrel maintains a robust full-year revenue guidance of $3.45 to $3.5 billion, supported by enhanced marketing efforts and operational strategies.

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