Corporate executives and directors tend to have superior information in relation to their firms’ operating activities. If these individuals are buying company stock, it’s generally a bullish signal.
In this report, we are going to highlight some interesting insider buying at Bowlero Corp (BOWL:US). Bowlero is a ten-pin bowling center operator that has over 300 locations across the US. Its brands include AMF, Bowlmor Lanes, and Bowlero. The company is listed on the New York Stock Exchange and currently has a market cap of around $1.6 billion.
Our data shows that two insiders at Bowlero have purchased stock this month.
On September 12, CFO Robert Lavan bought 10,000 shares at a price of $9.95 per share. This trade was worth a total of just under $100,000.
Then, on September 14, board member John Young bought 4,900 shares at a price of $10.26 per share. This trade was worth approximately $50,000.
What stands out here is that the CFO has made a large stock purchase. CFOs generally have an excellent understanding of their firms’ financials and prospects, so their trades are notable.
Additionally, the CFO’s purchase has increased the size of his holding by 58%. The fact that the insider has increased the size of his position by such a large percentage suggests that he sees a lot of value in the stock at present.
Increasing Wallet Share
Bowlero recently posted solid Q4 fiscal 2023 results.
For the quarter, revenue was $239 million, down 10.6% year on year but up 54% on Q4 fiscal year 2019.
Meanwhile, net income for the period came in at $146.2 million versus $6.9 million a year earlier.
Looking ahead, the company said that it expects to invest in the business this fiscal year. However, management was optimistic in relation to the group’s prospects, targeting revenue growth of 10-15% for the year.
“We are in the early stages of pioneering new ways to increase wallet share from our vast customer base, and these changes are resonating with our guests,” said Founder, CEO, and President Tom Shannon.
“We remain confident in the upcoming fiscal year in which we have several exciting initiatives underway, including the acquisition of Lucky Strike, a robust M&A pipeline, new build activity in marquee markets, accelerated center conversions, and the continued rollout of initiatives to enhance the customer experience and increase wallet share,” he added.
In light of this confidence from management, we see the insider buying here as a bullish development.
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