We recently published a list of 10 Top Insider Stock Buys And Sells In January. In this article, we are going to take a look at where Restaurant Brands International (NYSE:QSR) stands against other top insider stock buys and sells in January.
Ever heard of the “January effect?” In case you haven’t, a “January effect” is considered a phenomenon in the stock market where stock prices, most commonly of small-cap stocks, rise in the month of January. Analysts have noticed the pattern and provided various explanations for it.
Some attribute the January rise in price to tax-loss harvesting, which usually happens between October and December. The theory suggests that after investors have sold some of their stocks at the end of the year for tax purposes, investors search for new buying opportunities. Others believe that year-end bonuses lead to more investments which subsequently increases stock prices. Overall, whatever the reasons, January seems to be a favorable part of the year for the stock market.
This January, the broader market index went up 2.93%. But, what are some of the stocks that have seen the most insider trading activity this month? To find out, we used Insider Monkey’s insider trading stock screener and looked for stocks with a minimum of five insiders buying or selling in January.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
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A close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.
Restaurant Brands International Inc. (NYSE:QSR)
Number of insiders selling: 10
Market Cap: $29.08 billion
Restaurant Brands International is the company behind popular brands like Tim Hortons, Burger King, Firehouse Subs, and Popeyes. It is also one of 10 Large-Cap Stocks Insiders Are Selling Recently. The Canadian-American multinational fast-food holding company operates more than 30,000 restaurants across 120 countries and territories.
In January, 10 investors, including the company’s CEO and CFO sold a total of $3.42 million worth of Restaurant Brands shares at an average price of $64.75 per share. Of the total amount, the company’s CEO, Joshua Kobza, sold 12,420 shares, worth $797,342, reducing his holdings to 703,445 shares. The stock is now trading at $64.45, having lost 1.12% since the beginning of the year. Over the past 12 months, Restaurant Brands shares declined 15.56%.
Restaurant Brands has been paying dividends for 10 consecutive years and has a 3.67% dividend yield. For the full year 2024, the company disclosed $8.41 billion, an increase of 19.71% compared to the previous year’s $7.02 billion. Net income amounted to $1.45 billion, compared to $1.72 billion for the full year 2023.
As many as 22 analysts have an average “Buy” rating on the stock, with a price target of $80.2, representing an increase of 24.19% from the latest price, as per data from StockAnalysis.
On February 18, the company announced it has bought stakes in Burger King China from its local franchisee for around $158 million. As a result, the company now owns nearly 100% of the business and plans to identify a new local partner to inject primary capital into the business and become the controlling shareholder.
Overall, QSR ranks 4th on our list of top insider stock buys and sells in January. While we acknowledge the potential of QSR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QSR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
