CERRITOS, Calif.—Kim David Wook Jin, Co-Chief Executive Officer of GEN Restaurant Group (LON:RTN), Inc. (NASDAQ:GENK), recently acquired a significant stake in the company. According to a recent filing, Kim purchased 3,954 shares of Class A Common Stock on November 21, 2024, at a price of $7.90 per share, totaling approximately $31,236.
Following this acquisition, Kim holds 135,093 shares indirectly through Put Call Forever LP. Additionally, Kim maintains substantial holdings in Class B Common Stock, with 8,478,543 shares held through various trusts, including the DJK Trust and the Kim Family Living Trust.
This transaction reflects Kim's ongoing commitment and confidence in the company's future prospects. GEN Restaurant Group, headquartered in Cerritos, California, operates in the retail-eating places sector.
InvestingPro Insights
Kim David Wook Jin's recent purchase of GEN Restaurant Group (NASDAQ:GENK) shares aligns with several key financial metrics and trends highlighted by InvestingPro. The company's market cap stands at $38.17 million, reflecting its position in the competitive restaurant industry.
Despite the CEO's show of confidence, InvestingPro data reveals that GENK's stock has taken a significant hit over the last six months, with a price total return of -29.62%. This context makes Kim's investment particularly noteworthy, suggesting he may see value not yet reflected in the market price.
InvestingPro Tips indicate that GENK is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.11 for the last twelve months as of Q3 2024. This could signal potential undervaluation, possibly influencing Kim's decision to increase his stake.
However, investors should note that the company operates with a significant debt burden, which may impact its financial flexibility. Additionally, GENK's gross profit margin is relatively weak at 16.08%, which could be a concern in the cost-sensitive restaurant sector.
On a positive note, GENK has shown revenue growth of 12.5% over the last twelve months, indicating some business momentum. Analysts predict the company will be profitable this year, which could be another factor behind Kim's investment decision.
For readers interested in a deeper dive into GENK's financials and prospects, InvestingPro offers 11 additional tips that could provide valuable insights for investment decisions.
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