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Monica Wolfe
Monica Wolfe
Articles (757) 

Winmark CEO Makes Insider Buy as First Quarter Results Are Announced

April 24, 2013 | About:

Winmark Corporation reported one significant insider buy on April 22. This buy came from Chairman and CEO John Morgan as the price is on the decline from its 52-week high.

John Morgan bought 4,100 shares on the April 22. The shares traded at an average prie of $59.70. This cost Morgan a total of $244,770. Morgan now holds on to 1,712,310 shares of his company’s stock.

This marks the first insider transaction for John Morgan and Winmark in 2013. If you look at John Morgan’s market overview, you can see that Morgan’s investments in both Winmark and Canterbury Park Holding Corporation (CPHC) have consistently succeeded and grown.

Winmark is a franchisor of four different value-oriented retail stores that buy, sell, trade and consign merchandise. The company’s four retail stores are Play It Again Sports, Plato’s Closet, Once Upon a Child, and Music Go Round.

The GuruFocus Analysis of Winmark reports that the price of the company is inching towards a 52-week high price of $64.40. The analysis also states that the company’s operating margin is expanding and that its dividend yield is close to a three-year high.

This buy also comes after the company reported its first quarter financials on April 17. Winmark brought in a net income of $4,057,500, or $0.78 per diluted share, in contrast to the same period in 2012 when the company brought in $3,516,000 or $0.67 per share. The company also reported that they reduced their bank debt by $6.3 million during this quarter.

John Morgan said in response to these financials, “Our results continued to demonstrate the strength of our franchising business, with solid growth in royalties and new franchise agreements. Our leasing business, while exhibiting a modest increase in profitability, achieved more meaningful growth in the portfolio of our customers and equipment that, along with the development of our sales staff, positions us well for continued long-term success.”

The company is also introducing their new concept store, Style Encore, to the market this year.

1366818431957.pngWINA data by GuruFocus.com

According to Winmark’s income statement, its revenue has been steadily increasing since 2005. The company’s net income has maintained its consistent rise since December 2009.

Market Cap: 303.88 M P/E: 23.2 Shiller P/E: 35.1
P/B: 17.2 P/S: 6.215 EV/EBITDA: 10.63
52 Week Low: 47.43 52 Week High: 64.40 Average Volume: 12,428

There are currently no gurus that hold a stake in Winmark.

With its shares up 1.43%, Winmark trades at $61.65.
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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