Noodles & Co (NDLS) Shares Down 6% on Insider Selling

Noodles & Co (NASDAQ:NDLS)’s share price dropped 6% during mid-day trading on Friday following insider selling activity. The stock traded as low as $12.18 and last traded at $12.32. Approximately 520,759 shares traded hands during trading, an increase of 70% from the average daily volume of 305,576 shares. The stock had previously closed at $13.10.

Specifically, CEO David James Boennighausen sold 43,096 shares of the company’s stock in a transaction that occurred on Monday, August 27th. The shares were sold at an average price of $11.52, for a total value of $496,465.92. Following the transaction, the chief executive officer now directly owns 118,261 shares in the company, valued at approximately $1,362,366.72. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Melissa Heidman sold 5,924 shares of the company’s stock in a transaction that occurred on Tuesday, October 16th. The stock was sold at an average price of $13.00, for a total transaction of $77,012.00. Following the completion of the transaction, the executive vice president now owns 31,019 shares in the company, valued at $403,247. The disclosure for this sale can be found here. Insiders sold a total of 3,455,783 shares of company stock worth $34,473,431 over the last quarter. 50.52% of the stock is currently owned by company insiders.

Several equities analysts have recently commented on the stock. Zacks Investment Research upgraded shares of Noodles & Co from a “hold” rating to a “buy” rating and set a $15.00 price objective on the stock in a report on Thursday. ValuEngine upgraded shares of Noodles & Co from a “buy” rating to a “strong-buy” rating in a report on Wednesday. SunTrust Banks upgraded shares of Noodles & Co from a “hold” rating to a “buy” rating and upped their price objective for the stock from $11.00 to $15.00 in a report on Tuesday. BidaskClub lowered shares of Noodles & Co from a “strong-buy” rating to a “buy” rating in a report on Friday, October 5th. Finally, Citigroup upped their price objective on shares of Noodles & Co from $11.50 to $15.00 and gave the stock a “buy” rating in a report on Tuesday, September 18th. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. Noodles & Co presently has an average rating of “Buy” and a consensus target price of $12.33.

The company has a market capitalization of $546.38 million, a price-to-earnings ratio of -616.50, a P/E/G ratio of 32.40 and a beta of -0.58. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.29 and a current ratio of 0.52.

Noodles & Co (NASDAQ:NDLS) last announced its earnings results on Wednesday, July 18th. The restaurant operator reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.01). Noodles & Co had a negative return on equity of 0.45% and a negative net margin of 4.03%. The business had revenue of $117.40 million for the quarter, compared to analysts’ expectations of $114.16 million. During the same period in the previous year, the company earned $0.01 earnings per share. Noodles & Co’s quarterly revenue was up 4.1% on a year-over-year basis. As a group, analysts predict that Noodles & Co will post 0.05 EPS for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the stock. GSA Capital Partners LLP purchased a new stake in Noodles & Co during the 2nd quarter worth approximately $175,000. Solstein Capital LLC purchased a new stake in Noodles & Co during the 2nd quarter worth approximately $197,000. Macquarie Group Ltd. purchased a new stake in Noodles & Co during the 2nd quarter worth approximately $200,000. Dimensional Fund Advisors LP purchased a new stake in Noodles & Co during the 2nd quarter worth approximately $250,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in Noodles & Co during the 2nd quarter worth approximately $300,000. 61.82% of the stock is currently owned by hedge funds and other institutional investors.

About Noodles & Co (NASDAQ:NDLS)

Noodles & Company develops and operates fast casual restaurants in the United States. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches, and appetizers. As of January 2, 2018, the company operated 412 company-owned and 66 franchised restaurants in 29 states, the District of Columbia.

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