Lubys Inc. (NYSE:LUB) is Attracting Smart Money


In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Lubys Inc. (NYSE:LUB) reported that Bandera Partners has picked up 1,680,667 of common stock as of 2017-05-23.

The acquisition brings the aggregate amount owned by Bandera Partners to a total of 1,680,667 representing less than 5.8% stake in the company.

For those not familiar with the company, Luby’s, Inc., is a multi-branded company operating in the restaurant industry and in the contract food services industry. The Company is managed through three segments: Company-owned restaurants, franchise operations, and Culinary Contract Services (CSS). The company-owned restaurants brands are Luby’s Cafeteria, Fuddruckers, and Cheeseburger in Paradise with a couple of non-core restaurant locations under other brand names. As of August 31, 2016, the Company owned and operated 175 restaurants, with 127 in Texas and the remainder in other states. The Company offers franchises for the Fuddruckers brand. As of August 31, 2016, the number of franchised restaurants were 113. Culinary Contract Services consists of contract arrangements to manage food services for clients operating in three lines of business: healthcare, higher education, and corporate dining. As of August 31, 2016, the Company had 24 Culinary Contract Services contracts.

A glance at Lubys Inc. (NYSE:LUB)’s key stats reveals a current market capitalization of 72.19 Million based on 29.09 Million shares outstanding and a price at last close of $2.52 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2015-12-15, Pappas picked up 2,900 at a purchase price of $4.38. This brings their total   holding to 4,169,370 as of the date of the filing.

On the sell side, the most recent transaction saw Mir unload 11,106 shares at a sale price of $4.31. This brings their total holding to 85,143.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Lubys Inc. (NYSE:LUB) as things move forward to see if its progress aligns with these transactions.

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